BGT Emissions ​

In order to participate in Proof of Liquidity, first you need to get some BGT. To do so, you'll need to provide liquidity into the native BEX. This is because newly minted BGT is emitted directly to liquidity providers based on gauge weights explained in BGT Delegation.

At a high-level, that looks like this:

What amount of BGT is earned for staking LP? ​

The amount of BGT rewards received by a user per pool is based on a few factors:

• The amount of BGT being emitted to that pool
• The amount of liquidity that the user has provided to that pool (out of all liquidity in the pool)

Can you give an example of how many BGT emissions I could earn? ​

Sure thing! Let's walkthrough one example of what you could earn and how you could make decisions on your deposits. Let's start by assuming you have 2,000 BERA and 10,000 HONEY that you want to earn with.

Preface: Validators set the gauge weights for each pool ​

Every validator has some % of total BGT supply staked against them, whatever % they have determines how many future BGT emissions they are in control of. Validators then set gauge weights for 1+ pools to determine how much of their BGT emissions go to each pool. We'll cover this more in detail in the next section, for now, we'll just assume there are 3 pools for BERA/HONEY trading with different weights.

1) Look Over the Available Pools ​

• Pool 1:
  • Total liquidity: 10,000,000 BERA / 50,000,000 HONEY
  • BGT Emissions %: 5%
  • Trading fee: 0.05%
  • Total volume: $15m/day
• Pool 2:
  • Total liquidity: 300,000 BERA / 1,500,000 HONEY
  • BGT Emissions %: 0%
  • Trading fee: 0.30%
  • Total volume: $200k/day
• Pool 3:
  • Total liquidity: 500,000 BERA / 2,500,000 HONEY
  • BGT Emissions %: 1%
  • Trading fee: 1%
  • Total volume: $50k/day

This means to maximize our rewards, we need to do some math.

2) Calculate Your Ownership of Each Pool ​

We'll assume you're depositing all your tokens (for simplification, all pools and the amount deposited have the exact same ratio):

Equation = User deposit / (Pool's liquidity + User deposit) * 100% = Pool % ownership

Pool 1

Pool % ownership = 2,000 BERA / (10,000,000 BERA + 2,000 BERA) * 100% = 2,000 BERA / (10,002,000 BERA) * 100% = 0.019998%

Pool 2

Pool % ownership = 2,000 BERA / (300,000 BERA + 2,000 BERA) * 100% = 2,000 BERA / (302,000 BERA) * 100% = 0.66225166%

Pool 3

Pool % ownership = 2,000 BERA / (500,000 BERA + 2,000 BERA) * 100% = 2,000 BERA / (502,000 BERA) * 100% = 0.39840637%

As you can see, the pool with the highest % ownership is Pool 2. However, that doesn't necessarily mean it'll earn the highest rewards.

3) Calculate Your BGT Earnings ​

Let's calculate the BGT earned in each pool:

• Pool 1: 5% * 0.019998% = 0.0009999% of all BGT emissions
• Pool 2: 0% * 0.66225166% = 0% of all BGT emissions
• Pool 3: 1% * 0.39840637% = 0.00398406% of all BGT emissions

This means that you'll earn the most BGT by depositing into Pool 3.

4) Calculate Your Trading Fees ​

Let's check out the trading fees as well:

• Pool 1: 0.05% * $15m * 0.019998% = $1.49985/day
• Pool 2: 0.3% * $200k * 0.66225166% = $3.97350996/day
• Pool 3: 1% * $50k * 0.39840637% = $1.99203185/day

This means you'll earn the most trading fees by depositing into Pool 2. So in total, we're deciding between:

• Pool 1: $1.49985/day + 0.0009999% of all BGT emissions
• Pool 2: $3.97350996/day + 0% of all BGT emissions
• Pool 3: $1.99203185/day + 0.00398406% of all BGT emissions

Conclusion ​

Now you have some decisions to make, what do you find most important? What do you want to be rewarded in? How do you expect these to change? This is where your BGT strategy may differ from others with different goals. If you don't want to bother with actively managing this, there are many great ecosystem projects offering management services.

What is required for a pool to be eligible to earn BGT? ​

To enable a specific pool to be eligible for BGT emissions, a user must submit a governance proposal for that pool to be added to the eligible pool set. You can learn more about submitting a proposal in BGT Station.

After this, validators can add it to their set of BGT emissions.