Ramses Exchange extends its incentive framework through Sarcophagus and AutoVaults. Sarcophagus links RAM supply reduction to trading activity through a burn mechanism funded by trading fees, while AutoVaults automate governance participation for xRAM holders.
Sarcophagus routes 5% of trading fees from Ramses liquidity pools into a contract where they accumulate until users burn RAM to claim them, linking token supply reduction directly to trading activity on the protocol.
Ramses reduces RAM supply through two independent burn mechanisms. One burn is triggered when users claim fees accumulated in Sarcophagus, while another occurs when RAM is converted into xRAM for governance participation.
AutoVaults automate participation in Ramses’ weekly governance voting process by pooling xRAM deposits and applying algorithmic voting strategies, allowing users to earn governance rewards without manually allocating votes.
Primer
Ramses Exchange launched on Arbitrum in March 2023 as a next-generation automated market maker (AMM) built to improve capital efficiency and align incentives across decentralized finance. The protocol later expanded to HyperEVM in July 2025 and now functions as a liquidity layer within the Hyperliquid ecosystem. Its development emphasizes sustainable design and broad community ownership rather than short-term yield extraction or venture-funded growth.
At the core of Ramses is the x(3,3) tokenomics model, a dynamic evolution of ve(3,3) that replaces fixed token lock-ups with flexible participation and a deflationary supply structure. The framework aims to reward active users, align emissions with productive liquidity, and strengthen governance through continuous participation.
Ramses integrates three primary systems that together define its market architecture:
Concentrated liquidity pools that improve capital deployment by allowing targeted price ranges.
A Dynamic fee algorithm that adjusts swap fees in real time to reflect market conditions.
Ramses’ incentive system links trading activity, liquidity incentives, and governance participation through the RAM and xRAM token model. To extend these core mechanics, Ramses introduces two additional components that shape how trading activity affects token supply and how governance voting power is allocated: Sarcophagus and AutoVaults.
Sarcophagus links RAM supply reduction directly to trading volume through an activity-based burn mechanism, while AutoVaults automate participation in the weekly governance voting process for xRAM holders.
Sarcophagus
Sarcophagus is a deflationary module designed to exert ongoing pressure on the RAM token supply. It achieves this by channeling a portion of trading fees into a dedicated contract, where they accumulate until any user burns RAM to claim them. This permanently removes RAM from circulation and links token supply reduction to trading activity on the protocol.
Ramses directs swap fees from its liquidity pools as follows:
5% to the Sarcophagus contract – funds the protocol’s deflationary burn mechanism.
1% to the Maker Rebate Program – provides rebates to top-performing LPs to encourage high-quality market making without requiring governance participation.
Accumulation and Scaling
Sarcophagus receives its share of fees from liquidity pools on every chain where Ramses is deployed, which currently includes HyperEVM and Arbitrum. The contract holds these fees in the tokens generated by each liquidity pool, such as stablecoins or other traded assets. As trading activity increases, the amount of fees held in the contract grows, increasing the value available to users who burn RAM to claim them.
Burn-to-Claim Process
Users can claim the fees accumulated in the Sarcophagus contract by burning RAM. The claimant determines the burn amount and receives all accumulated fees held in the contract. In practice, these claims are typically executed by MEV searchers and other arbitrageurs who monitor the contract and burn RAM when the value of the accumulated fees exceeds the cost of the RAM required to burn.
Relationship to Other Burn Mechanisms
Sarcophagus operates alongside the burn mechanism embedded in the RAM-to-xRAM conversion process. When RAM is converted into xRAM, half of the tokens are permanently destroyed as part of the conversion, granting holders governance voting power over emissions. Unlike the Sarcophagus, this conversion burn occurs when users opt into governance participation.
AutoVaults
AutoVaults are an automated governance vault that manages xRAM governance participation on behalf of depositors. The product reduces the operational requirements associated with the weekly voting cycle in the x(3,3) emissions model.
Under the standard governance process, xRAM holders vote each epoch to determine how RAM emissions are distributed across liquidity pools. These votes also determine the share of swap fees and vote incentives that voters receive. Because rewards are tied to voting participation, users who fail to submit votes during an epoch do not earn the associated rewards. AutoVaults address this coordination requirement by pooling xRAM deposits and executing voting strategies automatically, allowing depositors to maintain exposure to governance rewards without submitting votes themselves.
Voting allocations are determined by an algorithm that evaluates pools based on trading fees generated by each pool, vote incentives offered by protocols, and liquidity depth. The algorithm directs pooled voting power toward gauges expected to generate higher fee and incentive returns. Because the same optimization framework is also used by hyperRAM, the voting behavior of AutoVaults and hyperRAM can converge toward similar gauges.
Reward Collection
Rewards generated through AutoVault participation include swap fees distributed to voters and vote incentives offered by protocols seeking emissions. These rewards are harvested by the vault after each epoch.
Depositors select their preferred reward token when staking xRAM in the AutoVault. Harvested rewards are converted and distributed according to the depositor’s selected payout asset, removing the need for users to manually claim or manage multiple reward tokens.
In addition to governance rewards, xRAM holders may also receive protocol buyback rewards distributed in HYPE. These rewards are distributed pro-rata to eligible participants following each weekly epoch flip and represent an additional reward stream tied to protocol revenue.
AutoVault deposits remain liquid and can be withdrawn at any time without time-based restrictions. Ramses’ x(3,3) model does not impose lock-ups or vesting requirements for xRAM positions, allowing users to exit their positions freely.
Closing Summary
Sarcophagus and AutoVaults extend Ramses’ incentive model by addressing two operational challenges in the x(3,3) model: token supply management and governance participation. Sarcophagus links protocol activity directly to RAM supply reduction through a burn mechanism funded by trading fees. This activity-driven process operates alongside the burn that occurs when RAM is converted into xRAM for governance participation, creating two independent pathways through which protocol usage and governance both contribute to long-term supply contraction.
AutoVaults address the operational complexity of the weekly voting cycle by automating governance participation for xRAM holders. By pooling deposits and applying an algorithmic voting strategy, the vault allows users to maintain exposure to governance rewards without managing votes directly. Together, these mechanisms reinforce Ramses’ broader incentive framework, where trading activity generates value, governance directs liquidity incentives, and automated mechanisms maintain participation and supply dynamics as the protocol grows.
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