The main purposes of the CSM token are to incentivise liquidity providers on the Cashmere Exchange platform as well as getting as many users involved as possible in the governance of the protocol. Currently CSM has three main uses: voting, locking and boosting. Those three things will require you to vote lock your CSM and acquire veCSM.
veCSM stands for vote-escrowed CSM, it is simply CSM locked for a period of time. The longer you lock CSM for, the more veCSM you receive.
- CSM can now be staked (locked) to receive trading fees from the Cashmere.
- You can boost your liquidity providing rewards by locking CSM
100%of trading fees will be distributed to veCSM(obtained when CSM is locked) holders.
One of the main incentive for CSM is the ability to boost your rewards on provided liquidity. Vote locking CSM allows you to acquire voting power to participate in the DAO and earn a boost.
Once CSM holders vote-lock their veCSM, they can start voting on various DAO proposals and pool parameters.