# Primer on Yield Assets & Liquidity Incentive Curve introduced the vote escrow mechanism (ve) to power the incentive for stableswap liquidity of stablecoin pairs. The concept of *ve* can be applied more generally to enhance the liquidity experience where it is needed. Typically, the following areas are identified where liquidity *should be* incentivized, as utilization in these cases is high: * **Stablecoin liquidity** To become a medium of exchange, the issuer of a stablecoin is incentivized to enable as much liquidity for its stablecoin with other assets and media of exchange as possible. Example: **Curve stableswap's veCVE**. * **DEX Swap TVL** Asset issuers with DEX pairs for their assets need liquidity for their pairs (e.g. xxx/ETH) to optimize trading experience for their asset holders. **Example: Balancer BAL/ETH's veBAL**. * **Yield trading liquidity** Yield-bearing assets such as stETH, sUSDe want to incentivize their holders to lock in their yield-bearing assets with PT-YT yield trading. Example: Pendle's vePENDLE for PT/YT pairs. TownSquare's ve to incentivize liquidity for leveraged yield experience TownSquare's ve to incentivize liquidity for leveraged yield experience ### veTOWN to incentivize liquidity for leveraged yield experience TownSquare's vote escrow implementation leverages the success of all these examples to power liquidity for the underlying asset (e.g. MON, ETH) and the yield asset (e.g. aprMON, shMON, PT-aprMON & PT-stETH etc.) **to enhance the leveraged yield experience for yield-bearing asset holders.** --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.townsq.xyz/next-gen-incentive-for-next-gen-yield-assets/primer-on-yield-assets-and-liquidity-incentive.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.