LP Finance xGovernance

This documentation is intended to provide details on LP Finance Governance structure, revenue-sharing mechanisms, and the philosophy behind the architecture.

LP Finance DAO is managed by xLPFi token, which is the "only" governance token. Unlike most governance structures, where users can stake tokens to earn rewards and mint vote-escrowed tokens to vote, LP Finance allows doing either one of them.

LPFi could be comprehended as "preferred shares", which earn protocol revenue but gives up governance rights.

xLPFi tokens could be comprehended as "common shares", which gives governance rights but gives up shared revenue.

The reasoning behind the following design is explained here.

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