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, which are the basic building blocks of the PoL ecosystem.
User Interactions
The amount of $BGT rewards a user earns from Reward Vaults is a function of:
- The user's share of total assets staked in the vault
- The amount of
$BGTrewards emitted to the vault
After staking assets in a Reward Vault, users are free to claim the earned rewards as soon as they are distributed to the vault, add to their existing 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 choose to direct some portion of their $BGT emissions to specific Reward Vaults.
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 behaviour with economic incentives.
Creation of New Reward Vaults
New Reward Vaults are created through the Reward Vault Whitelisting process, conducted with $BGT via governance proposals. Developers or protocols can submit a proposal to create a new Reward Vault for a specific eligible asset. If the proposal passes, the new Reward Vault is created and added to the list of approved Reward Vaults that validators can direct $BGT emissions to.