Hermes Protocol V1 officially launched in February 2022 and started emissions in March 2022. Hermes allows liquidity providers to take decisions on adding new gauges, boosting gauge yields, voting on token emission, and receive bribes.
Hermes Protocol allows low cost, near 0 slippage trades on uncorrelated or tightly correlated assets. The protocol incentivizes fees instead of liquidity. Liquidity providers (LPs) are given incentives in the form of HERMES, the amount received is calculated as follows:
- 100% of weekly distribution weighted on votes from veHERMES holders
The above is distributed to gauges, however LPs will earn between 40% and 100% based on their own veHERMES balance.
LPs with 0 veHERMES balance, will earn a maximum of 40%.