Maximizing Returns: The Complete Approach
The most effective Dexlyn users combine multiple strategies:
1. Long-term Lock Strategy:
- Lock DXLYN for maximum duration (4 years)
- Maximize veDXLYN voting power
- Earn maximum rebase rewards
- Benefit from compounding over time
2. Strategic Voting:
- Vote for pools where you provide liquidity (aligned incentives)
- Target highly incentivized pools
- Adjust votes weekly based on changing incentives
- Consider the 1 DXLYN update fee vs. benefit
3. Liquidity Provision:
- Provide liquidity to pools you vote for
- Stake LP tokens in gauges immediately
- Choose pools with high vote share for better emissions
- Balance risk across multiple pools
4. Active Management:
- Monitor incentives each epoch
- Claim rewards regularly to compound
- Rebalance liquidity based on APR changes
- Participate in governance proposals
5. Compounding:
- Claim emission rewards ➜ Add to liquidity
- Claim rebase rewards ➜ Lock for more veDXLYN
- Claim incentives ➜ Reinvest strategically
- Let trading fees auto-compound in LP positions