Token Incentives

Objective

Drive protocol growth by targeting TVL and liquidity for depeg protection.

Mechanism Design

Feature

Description

Epoch-Based Rewards

Weekly distributions (e.g., 10,000 TPR) tied to TVL targets (e.g., 1,000 ETH).

Dynamic Adjustments

±20% TVL deviation triggers reward changes (e.g., 7,500 TPR if +20% TVL).

Pro-Rata Allocation

Larger liquidity providers earn more TPR proportionally.

Anti-Dilution Caps

Max 1,000 TPR per ETH to prevent overspending.

Example Scenario

  • Target TVL: 1,000 ETH.

  • Actual TVL: 1,200 ETH (+20%).

  • Action: Reduce next epoch’s rewards by 20% to 8,000 TPR.

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