Pawnfi SAFE

What is Pawnfi SAFE?

Pawnfi Secure Asset For Ecosystem (SAFE) is where users can place their $PAWN to gain entitlement to voting power. While voting power is the foundation of Protocol governance, placing $PAWN in SAFE will not only improve protocol-level safety but also make Pawnfi more decentralized and community-driven.

What does it mean to place $PAWN in SAFE?

PAWN holders can place their $PAWN in SAFE to receive Voting Power. The longer you place, the more Voting Power you'll receive. Voting Power allows users on Pawnfi to:

  • vote on incentive distribution between pools;

  • Boost mining rewards;

  • Participate in DAO governance;

  • Share safety incentives (platform fee from Lending Market).

Some other things to note:

  • Users can place $PAWN in SAFE several times per account.

  • It is not required to vote to share safety incentives. Voting Power holders can still claim safety incentives (platform fee distribution) even if they do not vote.

  • Pawnfi works in a week long epoch, starting at 00:00 Thursday, UTC, every week. This means that every week your voting power declines by one week and voting starts anew.

  • There is no difference you start placing your $PAWN in SAFE on Tuesday or Wednesday - they will both decline by one week amount on Thursday at 00:00 UTC.

  • Safety incentives are paid out from the previous week's fees. Every Thursday, a new balance of fees streams out to users whose $PAWN was placed in SAFE during that previous week. Please see Safety Incentives Mechanism for more information.

What is a Boost?

When placing $PAWN in SAFE, you will also earn a boost on your provided liquidity of up to 2.5x. The goal is to incentivize users to participate in governance by rewarding them with a bigger share of the PAWN distribution.

For more information on Boost, see Boosting your $PAWN Rewards.

What if I supply and borrow in multiple pools?

Your voting power applies to all gauges but may produce different boosts based on how much liquidity you are contributing and how much total liquidity the pool has.

How often does my boost records voting power changes?

Your voting weight decays over time, but your boost will take effect of your decreasing voting power at certain checkpoints like withdrawing, depositing into a gauge or minting PAWN.

For example if you start at 1000 voting power and your voting power decreases to 800, your boost will still use your original voting power of 1000 voting power until a user checkpoint.

How can I apply my boost?

After placing $PAWN in SAFE, you need to trigger your boost on each of the gauge you're contributing liquidity in. This can be updated by depositing or withdrawing from a gauge.

For more information on the boost, see Boosting your $PAWN Rewards.

Important things to know about placing $PAWN in SAFE:

  1. Placing time that are less than 52 weeks can be extended to the 52-week maximum.

  2. Expired $PAWN in SAFE must be claimed before you can withdraw your $PAWN. Released $PAWN is then streamed out over a period of 7 days. During those 7 days released $PAWN can be claimed at any time.

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