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Gauges

Gauges are smart contracts in which users can stake their Proof of Liquidity (PoL) eligible assets in order to receive $BGT rewards. Gauges are the only way in which anyone can earn $BGT rewards, and therefore serve the important function of gating entry into the PoL ecosystem.

TIP

A different gauge contract exists for each PoL eligible asset

User Gauges

User Interactions

The amount of $BGT rewards a user earns from gauges is a function of:

  1. The user's share of total assets staked in the gauge
  2. The amount of $BGT rewards emitted to the gauge

After staking assets in a gauge, users are free to claim the earned rewards, add to their deposits, or withdraw their assets whenever they wish.

$BGT farming with gauges is meant to resemble familiar DeFi actions, providing a low barrier to entry for regular users.

How $BGT Ends up in Gauges

Validators vote to direct some portion of their $BGT emissions to specific gauges.

To understand why validators would choose to emit $BGT to a particular gauge over another, refer to Incentives in PoL, which discusses how protocols can influence validator behavior with economic incentives.

Creation of New Gauges

New gauges are created through the gauge whitelisting process, conducted by $BGT governance. Developers or protocols can submit a proposal to create a new gauge for a specific PoL-eligible asset. If the proposal passes, the new gauge is created and added to the list of approved gauges that validators can direct $BGT emissions to.