Orvex × Karma: The Native Yield Loop
What the Status Network funding pool is
Status Network generates yield from bridged assets — ETH is staked as stETH, stablecoins earn lending yield — and collects application fees. All of this is converted to ETH and flows into a shared funding pool. Karma holders govern how this pool is allocated each epoch, directing ETH yield toward ecosystem priorities including Orvex liquidity pools.
How Orvex LPs earn Karma
Approximately 30% of weekly Karma minting at launch goes to liquidity provision and app usage. Orvex LPs who stake positions into gauges earn Karma alongside their oORVX emissions. The more active your participation — providing liquidity, voting, trading — the more Karma you accumulate.
This Karma isn't just a throughput token. It's governance power over where the funding pool's ETH yield flows next.
How Karma votes route ETH yield back into Orvex pools
Each epoch, Karma holders vote on funding pool allocation. Because Orvex LPs are among the most active Karma earners on the network, they hold significant influence over where ETH yield is directed. The natural incentive: vote ETH yield into the pools you're already providing liquidity to.
The result is a closed loop:
- LP on Orvex → earn Karma
- Use Karma to vote ETH yield into your pools
- ETH yield increases your pool's APY
- Higher APY attracts more liquidity and volume
- More activity earns more Karma
- Repeat
Worked APY example
For an actively voted Orvex pool, a liquidity provider can earn from three independent streams:
| Stream | Source | Example |
|---|---|---|
| Swap fees | Trading volume through the pool | ~X% APY |
| ETH yield | Karma-directed funding pool allocation | ~Y% APY |
| Karma earned | Reputation + future governance power | Ongoing accumulation |
The swap fee and ETH yield streams compound independently. Karma earned in the process gives you increasing control over future ETH yield allocation.
LPing on Orvex earns the governance power needed to direct more ETH yield to that LP position.