SNAP Basic Training 04: How Swaps, LPs, Votes and Emissions Power Each Other

Every system on SNAP is connected.
Swaps feed LPs.
LPs feed voters.
Voters direct emissions.
Emissions pull liquidity back in.
The wheel keeps turning.

This is the flywheel effect. Once it spins, it becomes harder to stop than to start.
Today’s training explains how each part links to the next and why this design keeps the exchange liquid, efficient and aligned with those who support it.

1. Swaps: The Fuel Input

Every swap on SNAP sends a fee into the system.
That fee is shared across LPs and veSNAP voters depending on how the pool is structured.

Swaps create three things:

• Revenue for LPs
• Revenue for veSNAP voters
• Volume signals that attract emissions and deeper liquidity

More swaps increase pool fees.
Higher fees increase LP returns.
Higher LP returns attract more liquidity providers.
This is the first rotation of the flywheel.

2. LPs: The Depth That Makes Everything Work

Liquidity providers keep routes deep.
Deep routes keep slippage low.
Low slippage attracts more traders.

LPs get:

• A share of swap fees
• A share of any emissions sent to their pool

Good pools pull in more swaps.
More swaps increase LP yield.
Higher yield draws in more LPs.

The flywheel accelerates here. Swaps create yield. Yield creates depth. Depth creates more swaps.

3. Votes: The Steering Mechanism

veSNAP holders choose where emissions go.
Votes are not cosmetic. They redirect the economic engine.

Voters can:

• Push incentives into pools with strong volume
• Pull emissions away from dead or low-use pools
• Reward pools that strengthen the exchange
• Shape the entire layout of SNAP’s liquidity

When voters focus on pools that matter, emissions land where they generate the highest return for the system.

Swaps → Fees → LP yield → More LPs → More volume → Better pools → More voting

The incentives stack on themselves.

4. Emissions: The Engine of Growth

Emissions are the block rewards distributed to pools.
They exist to attract LPs and stabilise routes early in the system.

Emissions do three things well:

• Bring new liquidity in
• Hold liquidity in place long enough to grow volume
• Encourage long term alignment through veSNAP boosts

When emissions go to high performing pools, the effect is amplified.
When emissions go to low performing pools, the system slows down.

This is why voting matters.
Directing emissions correctly is how the flywheel keeps its shape.

5. How the Flywheel Loops Back

Here is the complete circuit in plain language:

1. Traders swap.
2. Swaps generate fees for LPs and voters.
3. Higher fees attract more LPs.
4. More LPs deepen pools.
5. Deeper pools increase swap volume.
6. Voters see the volume and direct more emissions to the pool.
7. Emissions raise LP yield further.
8. LP depth increases again, which increases swap volume again.

Every part reinforces the next.

If one part is weak, the wheel slows.
If all parts align, the wheel accelerates and the exchange becomes stronger than any single actor inside it.

6. Why veSNAP Sits at the Centre

The veSNAP system ensures long-term holders steer emissions.
Not short-term mercenary capital.
Not traders looking for a one-day farm.

veSNAP links voting power to lock time.
This gives voters a real stake in the performance of the pools they choose.
When they vote correctly, their own returns increase.

This keeps the flywheel pointed in the right direction.

7. What Makes SNAP’s Flywheel Different

SNAP inherits a reliable, battle tested design.
It uses the same core mechanics that have powered the biggest ve(3,3) markets.
The difference is in execution:

• Concentrated liquidity gives LPs tighter control.
• Routing logic improves execution for traders.
• Vote structure rewards long term alignment.
• Emission design reinforces sustainable pools, not short-term farms.

Every part is built to feed the next without relying on hype or one-off spikes in activity.

8. How You Fit Into the Flywheel

Whether you swap, LP or vote, you affect the system.

As a trader:
You generate fees. You fuel the wheel.

As an LP:
You deepen pools. You stabilise routes.

As a voter:
You decide which pools grow and which pools shrink.

Individually these actions seem small.
Together they form a flywheel that the entire TAC Chain relies on.

9. The Mission Brief

Swaps create fees.
Fees attract LPs.
LPs attract volume.
Volume attracts emissions.
Emissions strengthen the pools that matter.

This is the core mechanic that powers SNAP.

Flywheels do not start fast.
But once they move, they do not slow down easily.

Training complete.