Chedda
  • 💡Introducing Chedda Finance
  • Protocol
    • 💰Isolated Lending Pools
    • Risk Parameters
    • ⛓️Cross Chain Tokens
    • 🔱Liquidity Incentives
    • 🏛️CHEDDA Lock Gauges
    • Governance
  • token
    • 🪙Tokens
    • Tokenomics
    • 🏆Chedda XP
  • Using The App
    • App
      • 🌉Bridging
      • 💳Connecting Your Wallet
      • 💵Supplying Assets
      • 🔐Staking and Locking
      • ✅Voting
      • 🏆Claiming Rewards
        • 🔁Borrowing
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  • $CHEDDA Locking Rewards
  • LP Staking Rewards
  1. Protocol

Liquidity Incentives

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Last updated 8 months ago

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 Locking Rewards

$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 in that pool. As a reward to compensate for this risk, locked tokens receive emission rewards.

LP Staking Rewards

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.

Locked tokens also direct to Liquidity Directors (LDs).

Staking rewards received by a pool is determined by the amount of attached to that pool.

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token emissions
shortfall event
vCHEDDA
CHEDDA Rewards
Staking rewards