Directing rewards to incentivize LP positions
Gauges are how the HAI DAMO protocol incentivizes LP allocations. Every week, the protocol will emit a variable amount of $DAMO as rewards to depositors in a DIV. Governance Pass holders stake their reDAMO to vote on which DIV assets should receive $DAMO. This incentivizes $DAMO stakers (Governance Pass holders) to direct rewards to their preferred assets in a DIV, and thus incentivizing a higher allocation of that asset.