PEN token, and how it fits in the Penrose platform
PENis the native platform token for Penrose.
PEN is rewarded to DYST stakers and Dystopia liquidity pools pro-rata to DYST generated by the platform.
If you're in a high DYST rewards liquidity pool you will receive more PEN for your efforts.
DYST stakers receive PEN proportional to the amount of penDYST they have locked.
PEN can be staked on Penrose to earn a share of Dystopia LP's DYST earnings.
Staked PEN will receive its portion of the fees as penDYST (tokenized veDYST). This is to keep DYST in the system building boost, but users can trade out their penDYST through the penDYST/DYST liquidity pool.
Penrose DYST fees that would be returned to PEN stakers are locked in veDYST, and tokenized as penDYST and given to the PEN stakers.
PEN is used for voting on how Penrose allocates it's veDYST towards Dystopia gauge weight votes. Users must vote-lock their PEN tokens (vlPEN) in order to participate. Full details on the "Voting and Gauge Weights" page.
PEN Liquidity Pools
Rather than vote locking PEN, users can also choose to contribute to the Dystopia liquidity pool PEN/WMATIC.
Users can then stake their PEN/WMATIC LP token on Penrose to receive a 0-5% fee on DYST earned by other LP positions for providing liquidity to others to enter and exit Penrose'secosystem via the PEN token.
As protocol evolves, governance can vote to reduce or eliminate the additional PEN/WMATIC LP rewards.