Glossary

This glossary defines canonical terms used across the Orvex protocol and ecosystem. Definitions here are authoritative. If another document conflicts with this glossary, this glossary takes precedence.

Token & Governance Models

ve(3,3) — A DeFi incentive and governance design pattern originally introduced by Andre Cronje. It combines ve-style vote-escrowed tokens (inspired by Curve) with (3,3) game theory mechanics (cooperative incentives from Olympus-style models). The goal is to align long-term token locking, governance voting, fee capture, and liquidity direction. ve(3,3) is a mechanism, not a specific protocol.

MetaDEX — A generalized evolution of the ve(3,3) model. A MetaDEX separates liquidity provisioning, incentive distribution, governance and voting, fee routing, and strategy layers into modular components. Orvex implements a MetaDEX architecture, meaning ve(3,3) mechanics are extended with modular gauges, dynamic fee hooks, and extensible incentive logic. In short: ve(3,3) is the original pattern; MetaDEX is the expanded architecture.

Tokens

ORVX — The liquid base asset of the Orvex protocol. It is the asset users lock to obtain veORVX and the base asset referenced by the broader incentive system.

veORVX (Vote-Escrowed ORVX) — ORVX locked for a fixed duration to gain voting power. veORVX holders vote on gauge allocations, receive trading fees from voted pools, and influence liquidity direction.

oORVX — A non-transferable reward token earned through Orvex emissions. It has two conversion paths: Exercise (pay a strike price — default 30% of market price, governance-adjustable between 20–50% — to receive liquid ORVX) or Burn (convert into a permanent veNFT position). Exercise payments are routed 80% to the Strategic Reserve and 20% to operations.

bveORVX — A derivative or boosted form of veORVX used in specific incentive, strategy, or delegation contexts.

Permanent Account — A veORVX account created by burning oORVX. The resulting veNFT position is permanent and cannot be unlocked.

Flex Account — A veORVX account created by locking liquid ORVX. Can be exited early under penalty: 25% of the locked ORVX is burned, 25% goes to the Compounding Vault, and 50% is returned to the user.

Liquidity & Trading

Liquidity Provider (LP) — A user who supplies assets to a pool to facilitate swaps.

Classic Liquidity (Full-Range AMM) — Liquidity distributed across the entire price curve. Simple but capital-inefficient.

Concentrated Liquidity (CL) — Liquidity deployed within a defined price range, increasing capital efficiency near the active price.

Range — The price interval in which a concentrated liquidity position is active.

In-Range / Out-of-Range — Describes whether the current market price is inside or outside a liquidity position's selected range.

Impermanent Loss (IL) — The difference between holding assets versus providing them as liquidity when price moves and arbitrage rebalances inventory.

Liquidity Management

Manual Liquidity Management — User-defined ranges and manual repositioning of liquidity.

Rebalancing — Adjusting a liquidity position as price moves to maintain effectiveness or strategy alignment.

Incentives & Voting

Gauge — A contract where LP positions are staked to receive emissions. Gauges receive oORVX allocations based on veORVX voting.

Gauge Voting — The process by which veORVX holders vote on which pools receive emissions during an epoch.

Epoch — A fixed period during which votes, emissions, and fee distribution are calculated.

Emissions — Protocol incentives distributed as oORVX only. The protocol never emits liquid ORVX directly.

Omni Gauge — A gauge type that extends beyond standard DEX pools to support lending markets, ERC-4626 vaults, and other DeFi venues. Allows veORVX voters to direct oORVX emissions to a broader range of productive strategies.

Autovote Vault — A vault that automates veORVX voting on behalf of depositors. Vault participants are the only accounts eligible for rebase (anti-dilution) distributions. Solo veORVX holders outside vaults do not receive rebases.

Bribes — External incentives offered by protocols to attract veORVX votes to specific gauges.

Delegation — Assigning veORVX voting power to another address.

Status Network & Karma

Karma — A soulbound (non-transferable) ERC-20 token on Status Network that determines gasless transaction throughput and network governance power. Karma is earned through contribution — providing liquidity, staking SNT, using apps, or completing verifications. It cannot be bought, sold, or transferred.

Throughput Tier — One of 10 levels (Entry through Legendary) that map a user's Karma balance to their daily gasless transaction quota. Higher Karma balances unlock more free transactions per day.

RLN (Rate Limiting Nullifier) — A zero-knowledge cryptographic primitive used by Status Network for spam prevention. Verifies transaction rate compliance without revealing sender identity. Powers the gasless execution model.

Soulbound — A token property meaning it cannot be transferred between addresses. Karma is soulbound, ensuring reputation and governance power must be earned through participation, not purchased.

Native Yield Pool — Status Network's community funding pool, accumulating yield from bridged assets (ETH staking, stablecoin lending) and application fees. Allocation is governed by Karma holders.

Fees & Rewards

Trading Fees — Fees generated by swaps. On Orvex, 100% of trading fees flow to veORVX voters, not directly to LPs.

Fee Capture — The process by which trading fees are accumulated and routed to governance participants.

Strategic Reserve — The primary destination for oORVX exercise revenue (80% of strike payments). Builds durable protocol reserves that support long-term sustainability.

Redemption — The process of converting oORVX into ORVX or veORVX according to protocol-defined rules.

Protocol Architecture

Hooks — Extensible logic that modifies pool behavior at defined execution points.

Dynamic Fees — Swap fees that adjust based on market conditions such as volatility or trade impact.

Capital Efficiency — How effectively liquidity is used relative to price location and volume.

Understanding the relationship

ve(3,3) is the original incentive design pattern. MetaDEX is the modular evolution of that pattern. Orvex implements MetaDEX mechanics to extend ve(3,3) with automation, flexibility, and composability.