Glossary · G
Gauge
A smart contract mechanism on Curve Finance (and protocols using similar ve(3,3) designs) that controls the flow of token emissions to a specific liquidity pool. Gauge weights are determined by weekly votes from veCRV holders — pools with more votes receive more CRV emissions. This creates a market where protocols bribe veCRV holders to vote for their pool's gauge, known as 'gauge bribing' or 'the Curve Wars'.
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How Gauge works in practice
A gauge is the mechanism that routes a protocol's token emissions to a particular pool. Governance token holders vote on gauge weights, so the vote determines which liquidity providers get paid — which is why votes themselves become valuable.
Worked example
A protocol emits 1,000,000 tokens weekly across its gauges. A pool receiving 10% of gauge weight receives 100,000 of them, split among its liquidity providers. Doubling that pool's weight doubles its rewards and dilutes every other pool's share.
Figures are illustrative and chosen to be checkable, not live market data.
The mistake that costs people money
Assuming gauge weights are stable. They are re-voted regularly, and a pool's yield can halve overnight because voters moved elsewhere. A position sized on current emissions can stop making sense within a week.
Gauge: common questions
- What is Gauge?
- A smart contract mechanism on Curve Finance (and protocols using similar ve(3,3) designs) that controls the flow of token emissions to a specific liquidity pool. Gauge weights are determined by weekly votes from veCRV holders — pools with more votes receive more CRV emissions. This creates a market where protocols bribe veCRV holders to vote for their pool's gauge, known as 'gauge bribing' or 'the Curve Wars'.
- How does Gauge work in practice?
- A gauge is the mechanism that routes a protocol's token emissions to a particular pool. Governance token holders vote on gauge weights, so the vote determines which liquidity providers get paid — which is why votes themselves become valuable.
- Can you give an example of Gauge?
- A protocol emits 1,000,000 tokens weekly across its gauges. A pool receiving 10% of gauge weight receives 100,000 of them, split among its liquidity providers. Doubling that pool's weight doubles its rewards and dilutes every other pool's share.
- What do people get wrong about Gauge?
- Assuming gauge weights are stable. They are re-voted regularly, and a pool's yield can halve overnight because voters moved elsewhere. A position sized on current emissions can stop making sense within a week.