# Table of Contents - [Welcome | Splash](#welcome-splash) - [What is Splash? | Splash](#what-is-splash-splash) - [Liquidity Pools | Splash](#liquidity-pools-splash) - [Protocol concepts | Splash](#protocol-concepts-splash) - [Features | Splash](#features-splash) - [Know Your Assumptions | Splash](#know-your-assumptions-splash) - [Fees | Splash](#fees-splash) - [Off-chain Orders | Splash](#off-chain-orders-splash) - [Temporal Liquidity Book | Splash](#temporal-liquidity-book-splash) - [$SPLASH FAQ | Splash](#-splash-faq-splash) - [Troubleshooting | Splash](#troubleshooting-splash) - [Vote Escrow | Splash](#vote-escrow-splash) - [Overview | Splash](#overview-splash) - [Audits | Splash](#audits-splash) - [Understanding $SPLASH | Splash](#understanding-splash-splash) - [Understanding gauges | Splash](#understanding-gauges-splash) - [Set Collateral | Splash](#set-collateral-splash) - [$veSPLASH | Splash](#-vesplash-splash) - [$SPLASH Tokenomics | Splash](#-splash-tokenomics-splash) --- # Welcome | Splash Hey Whale! This web resource contains all the information about the Splash Protocol. You can consider it a white paper. It is divided into sections for better perception and easy reading. If you find any mistakes, misconceptions, or typos please contact us through [Discord](https://discord.com/invite/splashprotocol) . The links below will form a general overview of the protocol: [🐳What is Splash?](https://docs.splash.trade/concepts/what-is-splash) [πŸŒ€Features](https://docs.splash.trade/concepts/features) [🌐Protocol concepts](https://docs.splash.trade/concepts/protocol-concepts) [](https://docs.splash.trade/#join-community) Join Community ----------------------------------------------------------------- * [Discord](https://discord.gg/splashprotocol) * [X (former Twitter)](https://x.com/splashprotocol) Copy β–‘β–‘β–‘β–‘ β–‘β–‘ β–‘β–‘ β–‘β–‘β–‘β–‘ β–‘β–‘ β–‘β–‘β–‘β–‘ β–‘β–‘β–‘β–‘ β–‘β–‘ β–‘β–‘β–‘β–‘ β–‘β–‘β–‘β–‘ β–‘β–‘β–‘β–‘ β–‘β–‘ β–‘β–‘ β–‘β–‘β–‘β–‘β–‘β–‘ β–‘β–‘ β–‘β–‘ β–‘β–‘β–‘β–‘ β–‘β–‘β–‘β–‘β–‘β–‘ β–‘β–‘β–‘β–‘β–‘β–‘ β–‘β–‘β–‘β–‘ β–‘β–‘β–‘β–‘ β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘ β–‘β–‘ β–‘β–‘β–‘β–‘β–‘β–‘ β–‘β–‘β–‘β–‘β–‘β–‘ β–‘β–‘β–‘β–‘β–‘β–‘ β–‘β–‘β–‘β–‘ β–‘β–‘ β–ˆβ–ˆβ–ˆβ–ˆ β–‘β–‘ β–ˆβ–ˆβ–“β–“β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–ˆβ–ˆβ–“β–“β–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–ˆ β–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–ˆ β–ˆβ–ˆβ–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–‘β–‘β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆβ–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–‘β–‘β–ˆβ–ˆ β–ˆβ–ˆβ–“β–“β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–‘β–‘β–‘β–‘β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–“β–“β–“β–“ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–‘β–‘β–“β–“ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–‘β–‘β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–“β–“ β–“β–“β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆβ–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–“β–“β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–’β–ˆβ–ˆ β–ˆβ–ˆβ–’β–’β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–’β–’β–’β–’β–’β–’β–’β–’β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–’β–’β–’β–’β–’β–’β–’β–’β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–’β–’β–’β–’β–’β–’β–’β–’β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–’β–’β–’β–’β–’β–’β–’β–’β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–ˆβ–ˆβ–’β–’β–’β–’β–’β–’β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–’β–’β–ˆβ–ˆ β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘ β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘β–‘ [NextWhat is Splash?](https://docs.splash.trade/concepts/what-is-splash) Last updated 1 year ago Was this helpful? Was this helpful? --- # What is Splash? | Splash Splash has two definitions. 1\. Splash is a decentralized open-source protocol for efficient market-making and trading on Cardano. 2\. Splash is a DAO with governance and a distributed business model. The easiest way to understand Splash is to think of it as a decentralized exchange for Cardano Native Assets. Unlike centralized exchanges that match buy and sell orders (aka CLOB exchanges), or constant product Automated Market Maker (AMM) exchanges, Splash uses different types of AMM liquidity pools, the Virtual Limit Order Book (VLOB), and combines them all. This allows different types of market makers to earn interest by providing liquidity as efficiently as they want, and traders to benefit from the best prices by tapping all liquidity in a single order. This approach opens up limitless opportunities for both sides of the market. [](https://docs.splash.trade/concepts/what-is-splash#who-is-this-protocol-for) Who is this protocol for? ------------------------------------------------------------------------------------------------------------- Passive **liquidity providers** have the flexibility to explore a wide variety of pool types tailored to their specific requirements. Active liquidity providers (aka order book **Makers**) can seamlessly put bids and ask the Vertula Order Book using advanced orders or automate the process using custom or predefined strategies. **Traders** can capitalize on an extensive array of order types and trading automation tools to efficiently achieve their objectives. [](https://docs.splash.trade/concepts/what-is-splash#how-is-splash-different-from-other-cardano-dexes) How is Splash different from other Cardano DEXes? ------------------------------------------------------------------------------------------------------------------------------------------------------------- Splash is a revolutionary fully decentralized tool for both traders and market makers that offers: * Fast, transparent, and decentralized off-chain order execution * Composability: Ability to combine order book and AMM liquidity sources in a single order * Various types of configurable AMM pools for different asset types and purposes * Wide range of order types for advanced trading * Various automation tools * Secure non-custodial incentive tools for projects [More about features](https://docs.splash.trade/concepts/features) [PreviousWelcome](https://docs.splash.trade/) [NextFeatures](https://docs.splash.trade/concepts/features) Last updated 9 months ago Was this helpful? * [Who is this protocol for?](https://docs.splash.trade/concepts/what-is-splash#who-is-this-protocol-for) * [How is Splash different from other Cardano DEXes?](https://docs.splash.trade/concepts/what-is-splash#how-is-splash-different-from-other-cardano-dexes) Was this helpful? --- # Liquidity Pools | Splash [](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools#how-markets-are-created) How Markets Are Created? ------------------------------------------------------------------------------------------------------------------------------ In the world of decentralized finance (DeFi), markets are created through a mechanism known as liquidity pools, which are foundational to Automated Market Makers (AMM). Unlike traditional finance and markets on centralized crypto exchanges, where its creation relies on buyers, sellers, and market makers to provide liquidity, DeFi protocols enable the creation of markets through pools of funds locked in smart contracts. These on-chain pools allow for trading assets without the need for a traditional counterpart, making the market accessible and permissionless. [](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools#automated-market-maker) Automated Market Maker --------------------------------------------------------------------------------------------------------------------------- An Automated Market Maker (AMM) is a type of decentralized exchange (DEX) protocol that relies on a mathematical formula to price assets. Instead of using an order book like traditional exchanges, assets are traded against a pool of funds (liquidity pool), with prices determined by a constant mathematical formula. This approach allows for permissionless and automatic trading, where liquidity is provided by users who deposit assets into the pools and earn fees from trades. [](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools#liquidity-pool-types) Liquidity Pool Types ----------------------------------------------------------------------------------------------------------------------- There are various types of liquidity pools in the DeFi space. Each of them can serve different purposes for different asset types. In this section, we will cover the most used ones that are implemented in the Splash protocol. ### [](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools#constant-product-amm-cpamm) Constant Product AMM (CPAMM) Constant Product AMMs, utilize a simple formula (x\*y=k) to ensure that the product of the quantities of two assets remains constant. This mechanism allows for the automatic determination of prices based on supply and demand, with the invariant ensuring liquidity is maintained no matter the trade size. ### [](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools#weighted-pool) Weighted Pool Weighted Pools are a sophisticated evolution of the traditional CPAMMs. These pools use a concept known as [Weighted Math](https://docs.balancer.fi/reference/math/weighted-math.html) . Unlike the standard 50/50 weighting in other AMM pools, Weighted Pools offer the flexibility to create pools with multiple tokens and varied weightings, such as 20/80 or 55/25/30 distributions. These pools can create deeper liquidity for a base asset while using fewer quote assets. However, it comes with a tradeoff of higher slippage for traders. ### [](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools#stable-pool) Stable Pool Stable Pools are designed for assets that are relatively stable in price relative to each other, such as different stablecoins. They use a specialized AMM algorithm that reduces slippage on trades, making them highly efficient for swapping between assets with minimal price divergence. This design optimizes for high liquidity and low transaction costs, making it ideal for stablecoin trading. ### [](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools#dynamic-pool) Dynamic Pool Dynamic Pools use another algorithm that automatically adjusts liquidity, concentrating it around the spot price. With that design traders experience significantly less slippage and liquidity providers can earn significantly more fees during high volatility. This model is particularly well-suited for pairs of assets that might not maintain a stable price ratio but are still frequently traded together. [PreviousProtocol concepts](https://docs.splash.trade/concepts/protocol-concepts) [NextTemporal Liquidity Book](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book) Last updated 1 year ago Was this helpful? * [How Markets Are Created?](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools#how-markets-are-created) * [Automated Market Maker](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools#automated-market-maker) * [Liquidity Pool Types](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools#liquidity-pool-types) * [Constant Product AMM (CPAMM)](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools#constant-product-amm-cpamm) * [Weighted Pool](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools#weighted-pool) * [Stable Pool](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools#stable-pool) * [Dynamic Pool](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools#dynamic-pool) Was this helpful? --- # Protocol concepts | Splash Refer to the links below to learn more about Splash protocol concepts [Liquidity Pools](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools) [Temporal Liquidity Book](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book) [Off-chain Orders](https://docs.splash.trade/concepts/protocol-concepts/off-chain-orders) [Vote Escrow](https://docs.splash.trade/concepts/protocol-concepts/vote-escrow) [Fees](https://docs.splash.trade/concepts/protocol-concepts/fees) [PreviousFeatures](https://docs.splash.trade/concepts/features) [NextLiquidity Pools](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools) Last updated 9 months ago Was this helpful? Was this helpful? --- # Features | Splash [](https://docs.splash.trade/concepts/features#splash-v1) Splash v1 ------------------------------------------------------------------------ ### [](https://docs.splash.trade/concepts/features#liquidity-pools) Liquidity Pools **Pool Types** * **Constant product AMM pools:** The most simple 50/50 Uniswap-v2-like k=x\*y liquidity pools. * **Weighted pools (aka Balancer Pools):** Pools with uneven weights for assets (e.g. 20/80). Requires far fewer base assets to create deeper liquidity for a token. Also, reduces impermanent loss for liquidity providers. * **Stable Pools:** Pools with a different liquidity curve which is better for pegged (stable) assets. Significantly reduces slippage for traders. * **\[in progress\] Dynamic AMM Pools:** These pools automatically adjust the liquidity curve to concentrate liquidity around the spot price. Reduces slippage for traders and impermanent loss for liquidity providers. **Pools Features** * **Custom LP Fee:** Pool creators have the flexibility to establish a customized liquidity provider (LP) fee while creating the pool. * **Bi-directional LP Fee:** Pool creators can optionally assign distinct fees for buy and sell orders within the pool, providing a tailored fee structure. * **Dynamic Fees:** The LP fee within pools dynamically adjusts based on demand, leading to liquidity providers (LPs) earning higher fees in response to market conditions. ### [](https://docs.splash.trade/concepts/features#execution-engine) Execution Engine * **Temporal Liquidity Book:** The engine can match orders with each other (as on an order book exchange) and with liquidity pools simultaneously. This composability allows traders to get the best possible price and creates borderless opportunities for liquidity providers and market makers. * **Fully open and transparent:** Anyone can run the engine and execute DEX orders. * **Identifiable operators:** To execute orders, every operator must provide an on-chain identity. It allows others to track operators' actions and prevents malicious behavior. * **MEV protection:** Given the identifiability of all executors, extracting value from users poses a significant challenge. If an operator receives a poor rating, it hampers their ability to secure orders, ultimately resulting in a lack of earnings from fees. * **Fee market:** The openness and transparency of the systems create a fee market for execution engine operators. The cheaper and faster they process orders the more orders they can expect for execution and hence earn more fees. * **Execution strategies:** Our off-chain system monitors Splash operators and selects them based on user preferences for order execution. Users can choose faster execution strategies, but these may involve risks from lower-rated operators. The choice of execution method and operator always rests with the user. ### [](https://docs.splash.trade/concepts/features#orders) Orders All orders on Splash are placed into the Temporal Liquidity Book (TLB). The TLB enables your orders to be filled from both liquidity pools and the order book simultaneously, ensuring the best possible price with minimal slippage. Like any order book, orders placed in the TLB can be **partially filled**. Splash V1 only supports simple orders. Advanced DCA, Grid, Auction, and other types of orders will be available in V2. * **Market Order:** immediately buy or sell an asset at the best available spot market price. * **Limit Order:** buy or sell an asset at a specific price. Supports partial filling. [PreviousWhat is Splash?](https://docs.splash.trade/concepts/what-is-splash) [NextProtocol concepts](https://docs.splash.trade/concepts/protocol-concepts) Last updated 9 months ago Was this helpful? * [Splash v1](https://docs.splash.trade/concepts/features#splash-v1) * [Liquidity Pools](https://docs.splash.trade/concepts/features#liquidity-pools) * [Execution Engine](https://docs.splash.trade/concepts/features#execution-engine) * [Orders](https://docs.splash.trade/concepts/features#orders) Was this helpful? --- # Know Your Assumptions | Splash In this document, we outline a list of assumptions that are required to know and understand before using the Splash Protocol. 1. Splash is a fully decentralized, permissionless, and open system. It means that everyone can use and access it through multiple methods and no one can prevent a party from executing abusive market strategies. 2. Splash is a non-custodial system. It means that neither the development team nor anyone else can ever access your crypto funds both directly or indirectly until you provide access to your private keys. 3. All the on-chain entities such as placed orders or liquidity pools are NOT under the control of the development team. It means that the team won't be able to restore, reverse, or somehow cover your losses if you conduct rash actions. Remember that all on-chain actions are irreversible. 4. All on-chain actions require the transaction to be signed by a user. Always check what you are signing. 5. Splash Protocol has multiple interfaces to access it such as: a. A web user interface is accessible through a web browser and a wallet extension. b. Programmable access through our SDK or any other Cardano transaction-building library. c. Direct on-chain access to liquidity pools. d. Other user interfaces that read on-chain data and build transactions. 6. Splash Execution Engine Operators (EEO) can behave differently over time and no one can guarantee that this or that EEO will behave the same way under different market conditions. The rating system only assesses the past performance of an EEO. 7. Splash Smart Contracts and the core underlying logic were carefully audited by third-party narrowly specialized firms. However, it does NOT guarantee the 100% security of the system. There is always a risk of permanently losing crypto assets due to a security issue by using any DeFi product/app/service. 8. Becoming a liquidity provider in a Splash pool comes with multiple risks such as impermanent loss due to market fluctuations or permanent loss of all your funds due to a security issue. 9. Data provided by the user interface is for informational purposes only and should not be construed as investment advice or a recommendation that a particular token or asset is a safe or sound investment. You should not take, or refrain from taking, any action based on any information contained in the Interface. With that being said, always do your research and grasp as much information as possible about this or that DeFi or crypto product/service/app before interacting with them. [PreviousFees](https://docs.splash.trade/concepts/protocol-concepts/fees) [NextAudits](https://docs.splash.trade/concepts/audits) Last updated 9 months ago Was this helpful? Was this helpful? --- # Fees | Splash Fee Name Description LP fee The fee is distributed pro-rata among all liquidity providers of a pool. It is set on the liquidity pool creation step and may vary from 0.01 to 70% Protocol Fee Charged by each Splash Protocol liquidity pool. It goes to veSPLASH holders Execution Fee The fee paid to Execution Engine Operators. Every operator sets its fee tier. Network Fee The reward for the network validator for including your transaction in a block. Usually not more than 0.2 ADA. [PreviousVote Escrow](https://docs.splash.trade/concepts/protocol-concepts/vote-escrow) [NextKnow Your Assumptions](https://docs.splash.trade/concepts/know-your-assumptions) Last updated 9 months ago Was this helpful? Was this helpful? --- # Off-chain Orders | Splash In the current Cardano dApps, one order is usually represented as 2 on-chain transactions. We can call the first transaction an order placement and the second one a verification + execution. Thus the end user a) pays for order execution (so-called β€œbatcher” fees) and b) pays network fees twice. This is not ideal. [](https://docs.splash.trade/concepts/protocol-concepts/off-chain-orders#green-orders) Green Orders -------------------------------------------------------------------------------------------------------- To enhance the efficiency and cost-effectiveness of the off-chain execution system, as well as to significantly diminish the cost per order, we are streamlining the process by eliminating the necessity for on-chain order placement. Instead, we encode these orders into a message, which is then relayed off-chain to the designated executors. These off-chain orders, referred to as "green," incur zero on-chain overhead. The message's structure is depicted below: OrderBody\=OrderParamsβˆ—NonceOrderBody = OrderParams \* NonceOrderBody\=OrderParamsβˆ—Nonce Message\=OrderBodyβˆ—ΟƒMessage = OrderBody \* ΟƒMessage\=OrderBodyβˆ—Οƒ The user authorizes the order by signing its contents and attaching the proof σσσ. OrderParamsOrderParamsOrderParams – parameters of the order, e.g. quote and base asset, price, etc., NonceNonceNonce – monotonically increasing counter to prevent replay attacks. [](https://docs.splash.trade/concepts/protocol-concepts/off-chain-orders#autonomous-account) Autonomous Account -------------------------------------------------------------------------------------------------------------------- The Autonomous Account is a separate UTxO with scripts and works as a trading account on a centralized exchange. However, the AA is an on-chain entity so the custody of users' funds is not transferred to a third party after making a deposit. The purpose of AA is to facilitate off-chain order placement while ensuring secure access and manipulation of user funds during trade execution. The AA's scripts are responsible for verifying the authenticity and integrity of each order, confirming that the execution terms match the user's expectations (e.g., price, volume, and timing), and ensuring that the transaction complies with the overarching rules of the [Temporal Liquidity Book](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book) framework. This approach reduces the blockchain's transactional load, as well as leads to lower fees per order and faster execution times. Furthermore, the AA's transparent operation model ensures that users have full visibility into how their orders are executed, addressing concerns related to trust and security. [PreviousTemporal Liquidity Book](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book) [NextVote Escrow](https://docs.splash.trade/concepts/protocol-concepts/vote-escrow) Last updated 1 year ago Was this helpful? * [Green Orders](https://docs.splash.trade/concepts/protocol-concepts/off-chain-orders#green-orders) * [Autonomous Account](https://docs.splash.trade/concepts/protocol-concepts/off-chain-orders#autonomous-account) Was this helpful? --- # Temporal Liquidity Book | Splash In the evolving landscape of Cardano DeFi, the Temporal Liquidity Book (TLB) emerges as a groundbreaking concept designed to address the inherent limitations of existing Cardano DEX mechanisms. This framework introduces principles and technologies to enhance transparency, capital efficiency, and composability for Cardano DeFi. To fully understand the concept, it is necessary to fully understand the current problems with DEXes in the Cardano ecosystem. [](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book#cardano-dexes-the-status-quo) **Cardano DEXes: The Status Quo** ---------------------------------------------------------------------------------------------------------------------------------------------------- The journey of DEXes on Cardano has been shaped by the blockchain's eUTxO model, which presents distinct challenges in adapting protocols like Uniswap that were originally designed for Ethereum's Account model. This has led to innovative but complex solutions and highlighted limitations inherent in the classical DEX design on Cardano. ### [](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book#classical-dex-design-on-cardano) **Classical DEX Design on Cardano** The classical approach to implementing DEX protocols on Cardano involves creating on-chain orders that interact with shared liquidity pools. Unlike the Ethereum Virtual Machine (EVM), where users can transact directly with liquidity pools, the eUTxO model requires all inputs of a transaction to be deterministic. This necessity stems from the model's design to prevent race conditions and ensure transactional integrity, which, in practice, means that simultaneous orders to a shared liquidity pool can lead to only one successful transaction at a time, with others needing to be refunded and recreated. To navigate this, Cardano's DEXes synchronize user access to liquidity pools through on-chain orders, which are picked up and executed by off-chain bots (aka "batchers"). These orders are encoded into a UTxO carrying an input value and are guarded by a validator script. This script ensures that the order is executed at a fair price by referencing a specific liquidity pool at the time of execution, thereby requiring a precise pool specification to read the fair price. ### [](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book#limitations-of-classical-design) **Limitations of Classical Design** * **Lack of Transparency**: The reliance on off-chain execution mechanisms introduces a layer of opacity. Users are often unaware who will execute their orders, nor do they have control over the process. This can lead to a monopolistic environment where only a select few have permission to execute transactions off-chain, although the best practice involves allowing permissionless execution. The competition among agents to execute orders and earn fees is complicated by practices like frontrunning or Blockchain Extractable Value (BEV), where value is extracted from users beyond the transaction fees, further obscuring the execution process and disincentivizing beneficial actors. * **Capital Inefficiency and Poor User Experience**: The requirement for on-chain orders necessitates additional transactions for order placement and execution, incurring higher fees for users. Furthermore, in instances of order failure due to factors like price slippage or expiration, an extra transaction is needed to redeem the funds locked in the order, exacerbating inefficiencies. * **Absence of Composability**: The specificity of orders to work with concrete implementations of liquidity pools severely limits the ability to compose orders with different sources of liquidity. This not only restricts flexibility in the order execution process but also hinders the interoperability and efficiency of DEXes across the Cardano ecosystem, making it highly inefficient to leverage liquidity across different exchanges. [](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book#temporal-liquidity-book) Temporal Liquidity Book ------------------------------------------------------------------------------------------------------------------------------------- The TLB concept is introduced as a transformative solution to the inherent challenges posed by the UTxO model in on-chain trading, particularly the issues of fragmented liquidity and opaque off-chain execution systems. The framework is designed to upgrade the way liquidity is aggregated and orders are executed, offering a universal and transparent approach. ### [](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book#universal-liquidity-composition) **Universal Liquidity Composition** At the heart of the Temporal Liquidity Book is the principle of Universal Liquidity Composition, a novel approach that envisions aggregating all available market liquidityβ€”composing Automated Market Makers (AMMs), limit orders, and programmable ordersβ€”into a unified 3-dimensional space defined by Price, Volume, and Time. This conceptual framework allows for the matchmaking logic of all liquidity types to be governed by a universal set of rules, enabling seamless interaction between diverse liquidity sources. ![](https://docs.splash.trade/~gitbook/image?url=https%3A%2F%2F2637135070-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F4wUNxxjszIH28RfMOV63%252Fuploads%252F9IR6akEzGFr4Pva5CvaW%252Fimage.png%3Falt%3Dmedia%26token%3D4c88d938-ab89-4aab-ba5e-ec0f08125b7b&width=768&dpr=4&quality=100&sign=35e96855&sv=2) Temporal Liquidity Book ### [](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book#mev-resistance) **MEV Resistance** The TLB framework introduces resistance to Miner Extractable Value (MEV) and related forms of exploitation such as frontrunning. We assume that the behavior of off-chain executors will be the same long term because otherwise they will be punished and hence no longer earn execution fees. The framework addresses these concerns through two mechanisms: 1. **Order Steering**: This mechanism allows orders to be directed towards a selected subset of off-chain executors, rather than being broadcasted indiscriminately. This targeted approach reduces the potential for MEV and other exploitative practices by limiting the exposure of orders to potentially malicious actors. 2. **Execution Assessment**: The quality of order execution is assessed using a dynamic set of metrics that are evaluated directly by the client (within the user's chosen DEX application). This assessment enables orders to be automatically allocated to executors that consistently provide the best execution in terms of price and speed. The execution assessment combines an off-chain service, which aggregates relevant on-chain data and offers a user-friendly interface for querying this data, with a client-side SDK developed in Typescript. This dual-component system ensures that the assessment process is both comprehensive and accessible to users. ### [](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book#execution-engine) **Execution Engine** The Execution Engine is the implementation of the TLB concept. Since the system aims to be open and transparent anyone can run the Engine and become an Execution Engine Operator (EEO). Learn more about Execution Engine * * * You can learn more about the TLB concept by referring to the [Spectrum Bloom White Paper](https://spectrum.fi/spectrum_bloom_wp.pdf) . [PreviousLiquidity Pools](https://docs.splash.trade/concepts/protocol-concepts/liquidity-pools) [NextOff-chain Orders](https://docs.splash.trade/concepts/protocol-concepts/off-chain-orders) Last updated 1 year ago Was this helpful? * [Cardano DEXes: The Status Quo](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book#cardano-dexes-the-status-quo) * [Classical DEX Design on Cardano](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book#classical-dex-design-on-cardano) * [Limitations of Classical Design](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book#limitations-of-classical-design) * [Temporal Liquidity Book](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book#temporal-liquidity-book) * [Universal Liquidity Composition](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book#universal-liquidity-composition) * [MEV Resistance](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book#mev-resistance) * [Execution Engine](https://docs.splash.trade/concepts/protocol-concepts/temporal-liquidity-book#execution-engine) Was this helpful? --- # $SPLASH FAQ | Splash What is the purpose of $SPLASH?[](https://docs.splash.trade/splash-token/splash-faq#what-is-the-purpose-of-usdsplash) SPLASH has several purposes: * Attract liquidity to the protocol * Functions as the tool for the distributed business model How to get $SPLASH?[](https://docs.splash.trade/splash-token/splash-faq#how-to-get-usdsplash) Liquidity providers on the Splash protocol receive SPLASH rewards for liquidity provision. This ensures the protocol continues to offer the best possible prices and the lowest slippage when exchanging Cardano Native Assets. What is the utility of $SPLASH?[](https://docs.splash.trade/splash-token/splash-faq#what-is-the-utility-of-usdsplash) SPLASH functions as a governance token that incorporates a vote-locking mechanism. By locking SPLASH tokens, users receive veSPLASH, representing their voting power and sharing in the protocol. This grants them the right to participate in decision-making processes, such as voting on protocol changes, determining SPLASH's inflation rate, managing the protocol's treasury, and obtaining privileges to earn Protocol Fees. What is the total supply?[](https://docs.splash.trade/splash-token/splash-faq#what-is-the-total-supply) The total supply is 100,000,000 SPLASH tokens [PreviousUnderstanding $SPLASH](https://docs.splash.trade/splash-token/understanding-splash) [Next$SPLASH Tokenomics](https://docs.splash.trade/splash-token/splash-tokenomics) Last updated 9 months ago Was this helpful? Was this helpful? --- # Troubleshooting | Splash If you encounter any problem while using the Splash interface or deployed smart contracts please contact the development team using the [Discord](https://discord.gg/splashprotocol) link and open a ticket. [PreviousOverview](https://docs.splash.trade/developers/overview) [NextSet Collateral](https://docs.splash.trade/troubleshooting/set-collateral) Last updated 1 year ago Was this helpful? Was this helpful? --- # Vote Escrow | Splash [](https://docs.splash.trade/concepts/protocol-concepts/vote-escrow#introduction) Introduction --------------------------------------------------------------------------------------------------- In the DeFi and governance landscape, innovative mechanisms are constantly being developed to promote sustainable growth, equitable decision-making, and long-term stakeholder commitment. One such mechanism, the Voting Escrow (VE) system, has emerged as a pivotal strategy for aligning the interests of token holders. In this doc, we aim to explain the concept of Voting Escrow, detailing its operational framework and the positive feedback loop known as the Voting Escrow Flywheel effect. [](https://docs.splash.trade/concepts/protocol-concepts/vote-escrow#concept) Concept ----------------------------------------------------------------------------------------- The Voting Escrow system is a token-based vesting mechanism designed to incentivize long-term participation in the project. Unlike traditional voting systems where each token equates to a single vote, VE assigns voting power based on not just the number of tokens held, but also the duration for which these tokens are committed to being locked up. **How it Works** 1. **Token Lock-up:** Token holders lock up their tokens in a smart contract for a specified period. 2. **Voting Power Allocation:** The voting power granted to each participant is calculated based on the amount of tokens locked and the length of the lock-up period. The longer the tokens are locked, the greater the voting power. This method rewards long-term holders and reduces the influence of short-term speculators. 3. **Governance Participation:** Holders with locked tokens can participate in governance decisions. Their voting power influences the outcome of proposals, steering the project’s direction. 4. **Incentives and Rewards:** Projects may offer additional incentives for locking tokens, such as yield boosts, distribution of fees, or enhanced governance rights, further encouraging long-term holding and participation. [](https://docs.splash.trade/concepts/protocol-concepts/vote-escrow#voting-escrow-flywheel) Voting Escrow Flywheel ----------------------------------------------------------------------------------------------------------------------- The Voting Escrow Flywheel effect refers to a virtuous cycle that promotes the growth and stability of a blockchain project through incentivized long-term holding and governance participation. This effect is achieved through a series of interlinked processes that reinforce each other: 1. **Increased Participation:** By rewarding longer lock-ups with greater voting power, the VE system attracts committed participants interested in the project's long-term success. This increased stakeholder engagement enhances governance quality and project direction. 2. **Stabilization of Token Supply:** Depending on the model, as more tokens are locked up for extended periods, the circulating supply decreases, leading to reduced price volatility and a more stable token economy. 3. **Sustainable Incentives:** The alignment of incentives between token holders and project outcomes ensures that rewards are distributed to those contributing positively to the project's long-term goals, fostering a sustainable economic model. 4. **Feedback Loop:** Increased participation, supply stabilization, and aligned incentives create a positive feedback loop. This loop attracts more long-term participants, stabilizing the token economy and reinforcing the project's growth and success. Splash is the first protocol that leverages the VE mechanism on Cardano. To know more about how Splash's voting escrow works start from the [Understanding $SPLASH](https://docs.splash.trade/splash-token/understanding-splash) document. [PreviousOff-chain Orders](https://docs.splash.trade/concepts/protocol-concepts/off-chain-orders) [NextFees](https://docs.splash.trade/concepts/protocol-concepts/fees) Last updated 9 months ago Was this helpful? * [Introduction](https://docs.splash.trade/concepts/protocol-concepts/vote-escrow#introduction) * [Concept](https://docs.splash.trade/concepts/protocol-concepts/vote-escrow#concept) * [Voting Escrow Flywheel](https://docs.splash.trade/concepts/protocol-concepts/vote-escrow#voting-escrow-flywheel) Was this helpful? --- # Overview | Splash Soon we will update this section with content for developers such as: * Datum structures * Smart contracts implementation * API endpoints * SDK for integrations [PreviousUnderstanding gauges](https://docs.splash.trade/gauges/understanding-gauges) [NextTroubleshooting](https://docs.splash.trade/troubleshooting) Last updated 9 months ago Was this helpful? Was this helpful? --- # Audits | Splash [](https://docs.splash.trade/concepts/audits#pools) Pools -------------------------------------------------------------- ### [](https://docs.splash.trade/concepts/audits#constant-product-and-weighted-balancer-type-amm) Constant Product and Weighted (Balancer-type) AMM 422KB [anastasialabs\_cfmm\_and\_weighted\_pools.pdf](https://2637135070-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4wUNxxjszIH28RfMOV63%2Fuploads%2FQqUiJdTI2iCxIW2gND1F%2Fanastasialabs_cfmm_and_weighted_pools.pdf?alt=media&token=6b4c58d2-9942-42bb-85e5-7f051cdce21e) PDF Download[Open](https://2637135070-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4wUNxxjszIH28RfMOV63%2Fuploads%2FQqUiJdTI2iCxIW2gND1F%2Fanastasialabs_cfmm_and_weighted_pools.pdf?alt=media&token=6b4c58d2-9942-42bb-85e5-7f051cdce21e) Security Audit Report by Anastasia Labs ### [](https://docs.splash.trade/concepts/audits#stableswap) Stableswap 386KB [anastasialabs\_stableswap.pdf](https://2637135070-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4wUNxxjszIH28RfMOV63%2Fuploads%2Fyo0ON6VMtyowrpGgCgJu%2Fanastasialabs_stableswap.pdf?alt=media&token=1f1c3e67-982b-43c9-bd51-66bcd484a672) PDF Download[Open](https://2637135070-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4wUNxxjszIH28RfMOV63%2Fuploads%2Fyo0ON6VMtyowrpGgCgJu%2Fanastasialabs_stableswap.pdf?alt=media&token=1f1c3e67-982b-43c9-bd51-66bcd484a672) Security Audit Report by Anastasia Labs [](https://docs.splash.trade/concepts/audits#vote-escrow-system) Vote Escrow system ---------------------------------------------------------------------------------------- 466KB [txpipe\_splash\_dao.pdf](https://2637135070-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4wUNxxjszIH28RfMOV63%2Fuploads%2FxrUeEYbttQgLLlhmZYfX%2Ftxpipe_splash_dao.pdf?alt=media&token=15365d10-f3f0-43b5-8fe3-9bc980a4122d) PDF Download[Open](https://2637135070-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F4wUNxxjszIH28RfMOV63%2Fuploads%2FxrUeEYbttQgLLlhmZYfX%2Ftxpipe_splash_dao.pdf?alt=media&token=15365d10-f3f0-43b5-8fe3-9bc980a4122d) Security Audit Report from TxPipe [PreviousKnow Your Assumptions](https://docs.splash.trade/concepts/know-your-assumptions) [NextUnderstanding $SPLASH](https://docs.splash.trade/splash-token/understanding-splash) Last updated 9 months ago Was this helpful? * [Pools](https://docs.splash.trade/concepts/audits#pools) * [Constant Product and Weighted (Balancer-type) AMM](https://docs.splash.trade/concepts/audits#constant-product-and-weighted-balancer-type-amm) * [Stableswap](https://docs.splash.trade/concepts/audits#stableswap) * [Vote Escrow system](https://docs.splash.trade/concepts/audits#vote-escrow-system) Was this helpful? --- # Understanding $SPLASH | Splash The SPLASH token's main purpose is to attract liquidity providers and rule the protocol. It is also a crucial part of the Splash Protocol distributed business model. Here are the utilities: * Earning protocol fees * Controlling SPLASH emission * Voting for protocol changes [](https://docs.splash.trade/splash-token/understanding-splash#utility) Utility ------------------------------------------------------------------------------------ To get the utilities above, users must lock SPLASH tokens for up to 1 year in the `VotingEscrowLock` smart contract. The minimal locking time is 1 week. The longer the lock the more voting power and share a user gets. [$veSPLASH](https://docs.splash.trade/splash-token/ve-splash) [](https://docs.splash.trade/splash-token/understanding-splash#earning-protocol-fees) Earning protocol fees ---------------------------------------------------------------------------------------------------------------- 100% of all Protocol Fees can be claimed by `veSPLASH` holders every week. [](https://docs.splash.trade/splash-token/understanding-splash#controlling-splash-emission) Controlling SPLASH emission ---------------------------------------------------------------------------------------------------------------------------- SPLASH inflation takes place via gauges and liquidity providers can claim the newly issued tokens every week. [Understanding gauges](https://docs.splash.trade/gauges/understanding-gauges) [](https://docs.splash.trade/splash-token/understanding-splash#voting-for-protocol-changes) Voting for protocol changes ---------------------------------------------------------------------------------------------------------------------------- The voting utility is a subject of the V2 protocol release. More information about Voting will be released in Q2 2024. There are two types of governance proposals: * Proposals for changing protocol parameters * Proposals to manage DAO treasury [PreviousAudits](https://docs.splash.trade/concepts/audits) [Next$SPLASH FAQ](https://docs.splash.trade/splash-token/splash-faq) Last updated 9 months ago Was this helpful? * [Utility](https://docs.splash.trade/splash-token/understanding-splash#utility) * [Earning protocol fees](https://docs.splash.trade/splash-token/understanding-splash#earning-protocol-fees) * [Controlling SPLASH emission](https://docs.splash.trade/splash-token/understanding-splash#controlling-splash-emission) * [Voting for protocol changes](https://docs.splash.trade/splash-token/understanding-splash#voting-for-protocol-changes) Was this helpful? --- # Understanding gauges | Splash [](https://docs.splash.trade/gauges/understanding-gauges#the-gauges-system) The Gauges System -------------------------------------------------------------------------------------------------- In Splash Protocol, the inflation of SPLASH tokens goes to liquidity providers through the gauges system. The following diagram shows how the Splash inflation mechanism works: ![](https://docs.splash.trade/~gitbook/image?url=https%3A%2F%2F2637135070-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F4wUNxxjszIH28RfMOV63%252Fuploads%252FvsbAV5lDYhX10OeKEEYV%252Fimage.png%3Falt%3Dmedia%26token%3D415c423d-ef87-4709-8ed6-80fcb729bc42&width=768&dpr=4&quality=100&sign=1e34b2b1&sv=2) [](https://docs.splash.trade/gauges/understanding-gauges#poll-voting-process) Poll voting process ------------------------------------------------------------------------------------------------------ Voting occurs continuously during the SPLASH emission period and is updated every **seven** days. `veSPLASH` holders can adjust allocation weights and divide their voting power among one or more gauges. Voting occurs on the Splash Protocol Dashboard, which will be available when the Vote Escrow system launches. [](https://docs.splash.trade/gauges/understanding-gauges#gauge-weight) Gauge weight ---------------------------------------------------------------------------------------- Gauge weight translates into how much of the weekly SPLASH inflation a gauge receives. This SPLASH emission is distributed across all liquidity providers according to their supplied value. For example, if we have only 3 gauges in the system and one of them has 50% weight, then its weekly reward rate will be calculated as `weekly_emission_rate * 0.5`. [](https://docs.splash.trade/gauges/understanding-gauges#create-gauge) Create gauge ---------------------------------------------------------------------------------------- Anyone can create a voting process to add a gauge on top of any pool. `veSPLASH` holders make the decision through the appropriate voting process. The process will be described here once the Vote Escrow system is launched. [](https://docs.splash.trade/gauges/understanding-gauges#initial-gauges) Initial gauges -------------------------------------------------------------------------------------------- Our development team will create several gauges on top of the most performant liquidity pools before the Vote Escrow system launches. Stay tuned. [Previous$veSPLASH](https://docs.splash.trade/splash-token/ve-splash) [NextOverview](https://docs.splash.trade/developers/overview) Last updated 9 months ago Was this helpful? * [The Gauges System](https://docs.splash.trade/gauges/understanding-gauges#the-gauges-system) * [Poll voting process](https://docs.splash.trade/gauges/understanding-gauges#poll-voting-process) * [Gauge weight](https://docs.splash.trade/gauges/understanding-gauges#gauge-weight) * [Create gauge](https://docs.splash.trade/gauges/understanding-gauges#create-gauge) * [Initial gauges](https://docs.splash.trade/gauges/understanding-gauges#initial-gauges) Was this helpful? --- # Set Collateral | Splash If the App asks you to set collateral, it means that you need to have at least 5 ADA on a separate UTxO to transact within the app. That is how some Cardano smart contracts work. The following guides will help you: Eternl Wallet[](https://docs.splash.trade/troubleshooting/set-collateral#eternl-wallet) 1. Open your wallet and click on "Wallet Settings" ![](https://docs.splash.trade/~gitbook/image?url=https%3A%2F%2F2637135070-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F4wUNxxjszIH28RfMOV63%252Fuploads%252FRqwnENyj6euCHjIg8S9T%252FScreenshot%25202024-05-14%2520at%252015.52.26.png%3Falt%3Dmedia%26token%3D58f4e64f-5ce4-48d4-815d-7398fb7bf4a4&width=300&dpr=4&quality=100&sign=c1f3c14a&sv=2) 1. Unfold the "Collateral" dropdown ![](https://docs.splash.trade/~gitbook/image?url=https%3A%2F%2F2637135070-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F4wUNxxjszIH28RfMOV63%252Fuploads%252FBvcsAK4tB8tBHhM2q4Vb%252F%2520.png%3Falt%3Dmedia%26token%3Dc67383f2-383b-4cb6-b065-e0221369adaa&width=300&dpr=4&quality=100&sign=57376e82&sv=2) 1. Click on the "Set Collateral" button and sign the transaction ![](https://docs.splash.trade/~gitbook/image?url=https%3A%2F%2F2637135070-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F4wUNxxjszIH28RfMOV63%252Fuploads%252FYqTpXzAWBYeqyZueFSqb%252FScreenshot%25202024-05-14%2520at%252015.53.06.png%3Falt%3Dmedia%26token%3Db3f03c9a-c9d4-4821-b373-02411acd4c70&width=300&dpr=4&quality=100&sign=7769e831&sv=2) Nami Wallet[](https://docs.splash.trade/troubleshooting/set-collateral#nami-wallet) 1. Open the Nami extension and click on the avatar at the top right corner ![](https://docs.splash.trade/~gitbook/image?url=https%3A%2F%2F2637135070-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F4wUNxxjszIH28RfMOV63%252Fuploads%252FCpAp7JALN2ZLb2n43gPV%252FScreenshot%25202024-05-14%2520at%252016.06.20.png%3Falt%3Dmedia%26token%3D09839dc5-a2d5-4d9a-a6cd-d5ab6d7fbc07&width=300&dpr=4&quality=100&sign=b7e5c219&sv=2) 1. Click the "Collateral" button ![](https://docs.splash.trade/~gitbook/image?url=https%3A%2F%2F2637135070-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F4wUNxxjszIH28RfMOV63%252Fuploads%252FXgAJKRn4PYxYOCZ3oN0A%252FScreenshot%25202024-05-14%2520at%252016.06.25.png%3Falt%3Dmedia%26token%3Dd1374f10-a584-4946-95a4-7534bad52d3a&width=300&dpr=4&quality=100&sign=ac16522f&sv=2) 1. Sign the transaction ![](https://docs.splash.trade/~gitbook/image?url=https%3A%2F%2F2637135070-files.gitbook.io%2F%7E%2Ffiles%2Fv0%2Fb%2Fgitbook-x-prod.appspot.com%2Fo%2Fspaces%252F4wUNxxjszIH28RfMOV63%252Fuploads%252FqoUn5TZMrNhJCyjnJg3C%252FScreenshot%25202024-05-14%2520at%252016.06.31.png%3Falt%3Dmedia%26token%3D36c96510-817c-428b-90e0-c82e86c2ef53&width=300&dpr=4&quality=100&sign=a7c55399&sv=2) [PreviousTroubleshooting](https://docs.splash.trade/troubleshooting) Last updated 1 year ago Was this helpful? Was this helpful? --- # $veSPLASH | Splash To get the share and voting power users must participate in the locking process, also known as [vote-escrow](https://docs.splash.trade/concepts/protocol-concepts/vote-escrow) . In combination with [gauges](https://docs.splash.trade/gauges/understanding-gauges) , such a system is designed to build deep liquidity, promote long-term token-holder alignment, and facilitate fair protocol fee distribution. By locking `SPLASH` tokens, users receive `veSPLASH`, a **non-transferable token** representing both the share and voting power in the Splash Protocol. [](https://docs.splash.trade/splash-token/ve-splash#protocol-share-and-voting-power) Protocol share and voting power ------------------------------------------------------------------------------------------------------------------------- Instead of granting protocol share and voting power just with the token amount aaa, in Splash Protocol tokens are lockable in a Voting Escrow Contract for a selectable lock time tlt\_ltl​, where tl