🔱Liquidity Incentives
Last updated
Last updated
A percentage of the $CHEDDA token supply is set aside to incentivize liquidity provision on the protocol.
The distribution of $CHEDDA rewards to pools is determined by how much vCHEDDA is attached to each pool. Each token vault has a liquidity gauge, which keeps track of the how much liquidity each user has staked. Rewards are distributed proportional to the amount of liquidity being staked and the CHEDDA locked.
Rewards are streamed to pools continuously, and liquidity providers and liquidity directors can claim their rewards at any time.
$CHEDDA token holders can choose to lock their tokens in a pools' locking gauge for a fixed period of time to secure the pool. Locked tokens serve as the final backstop in case of a shortfall event in that pool. As a reward to compensate for this risk, locked tokens receive emission rewards.
Locked tokens also direct token emissions to Liquidity Directors (LDs).
Liquidity providers who supply assets to a vault to earn interest from loans can also receive $CHEDDA token rewards. Liquidity providers receive chTokens for the liquidity provided to a vault. These tokens can be staked in a staking pool to receive token emissions.
Staking rewards received by a pool is determined by the amount of vCHEDDA attached to that pool.
