The Foundation of Long-Term Value Alignment The ULAB Locker represents one of the core mechanisms driving the protocol’s sustainability and fairness. It is not just a vault to hold assets — it is a commitment device that aligns users with the long-term vision of ULAB. Through the Locker, users deposit their ULAB-based LP tokens and receive xULAB, a non-transferable representation of locked participation within the ecosystem. At its core, the Locker establishes a simple but powerful principle: those who contribute liquidity and stability to the protocol earn the right to participate in its emissions and growth. By locking ULAB LP, users gain xULAB, which is the key to earning rewards and maintaining eligibility for protocol incentives. This mechanism ensures that emissions are directed to users who are genuinely invested in the protocol’s health, rather than short-term speculators. @LayerBankFi The Locker accepts various ULAB LP pairs, including ULAB–MOVE, ULAB–ETH, and ULAB–Stables. Over time, governance can expand the range of supported pairs and even extend the Locker’s functionality across multiple chains, reflecting ULAB’s flexible and scalable architecture. Eligibility for rewards within each market depends on maintaining a balanced relationship between what you supply and what you lock. The rule is straightforward: the value of your locked ULAB LP must be at least three percent of your total supplied value in that market. For example, if you supply $1,000 worth of assets, you must maintain at least $30 worth of locked LP to remain eligible for ULAB rewards. This ratio creates a healthy equilibrium — encouraging deeper commitment without overburdening users. When the balance falls below the required threshold, either due to market movement or position changes, your eligibility status is revoked. The system automatically detects this and can trigger a “kick,” temporarily excluding the position from reward emissions until the condition is restored. To regain eligibility, users can either lock additional LP tokens or adjust their supplied value. This mechanism creates a disciplined yet fair incentive structure. It ensures that ULAB emissions go to users who actively support liquidity depth and token stability, reinforcing the protocol’s integrity. The Locker is, therefore, more than just an entry point to rewards — it is a gateway to aligned participation, consistent yield, and long-term protocol ownership. In essence, ULAB’s Locker transforms liquidity provision into a strategic act of governance and alignment. By locking ULAB LP, users strengthen the protocol’s foundation while securing their own place in the ULAB economy — where rewards flow to those who stay committed.
5.07K
81
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.