Reward Vault Governance

NOTE: For a detailed guide on creating reward vaults and associated governance proposals, see this blog post.

While creating a Reward Vault is permissionless, for it to receive $BGT emissions from validators, it must be whitelisted through a governance proposal. This process ensures community oversight and alignment over projects joining the Proof-of-Liquidity (PoL) ecosystem.

There are two components to whitelisting a new Reward Vault:

1. Whitelisting the Reward Vault
2. Whitelisting incentive token(s)

These components are typically handled concurrently through a single governance proposal.

Reward Vault Whitelisting

Reward Vaults are whitelisted on the BeraChef contract to make them eligible for receiving $BGT emissions:

1. Deploy a reward vault using the Reward Vault Factory, specifying the staking token. This produces a new vault address.

2. Submit and pass a governance proposal for whitelisting the vault, using the vault address obtained from the factory deployment:

function setVaultWhitelistedStatus(address receiver, bool isWhitelisted, string memory metadata) external;

Token Whitelisting

Protocols can supply Incentives to entice validators to direct emissions to their vaults. Incentive tokens must first be whitelisted on the particular Reward Vault being incentivized:

1. Prepare the following parameters:

   • Incentive token address
   • Minimum incentive rate - lowest exchange rate between incentive token and $BGT
     • Incentive rates below this floor are not accepted
   • Token manager address
     • Account that will control incentive parameters
     • Only one entitled to add incentives to a vault

2. Submit and pass a governance proposal for whitelisting the incentive token, using the vault address obtained from the factory deployment:

function whitelistIncentiveToken(address token, uint256 minIncentiveRate, address manager) external

TIP

Each reward vault maintains separate incentive token whitelists

Governance Process

The above whitelisting procedures are performed through BGT Governance.