Reward vaults
Reward vaults are smart contracts in which users can stake their Proof of Liquidity (PoL) eligible assets in order to receive $BGT rewards. Reward vaults are the only way in which anyone can earn $BGT rewards, and therefore serve the important function of gating entry into the PoL ecosystem.
TIP
A different reward vault contract exists for each PoL-eligible asset
User Interactions
The amount of $BGT rewards a user earns from a reward vault is a function of:
- The user's share of total assets staked in the reward vault
- The amount of
$BGTrewards emitted to the reward vault
After staking assets in a reward vault, users are free to claim the earned rewards, add to their deposits, or withdraw their assets whenever they wish.
$BGT farming with reward vaults is meant to resemble familiar DeFi actions, providing a low barrier to entry for regular users.
How $BGT Ends up in Reward Vaults
Validators direct some portion of their $BGT emissions to specific reward vaults of their choice.
To understand why validators would choose to emit $BGT to a particular reward vault over another, refer to Incentives in PoL, which discusses how protocols can influence validator behavior with economic incentives.
Creation of New Reward Vaults
New Reward Vaults can be created permissionlessely, but must go through the Reward Vaults Whitelisting process, conducted by $BGT governance in order to be eligible to recieve $BGT from validators. Developers or protocols can submit a proposal to whitelist a new reward vault for a specific PoL-eligible asset. If the proposal passes, the vault address is added to the list of approved reward vaults that validators can direct $BGT emissions to.
More information will be provided on how to submit a proposal for whitelisting in the near future.