Reward Pools
Stake BRIDGE tokens. Earn 70% of protocol incentive fees collected.
Reward Pools on the Cross-Chain Bridge distribute the majority of protocol incentive or bridging fees to BRIDGE owners. 70% of the fees collected from bridgings in a specific token are sent to the corresponding Reward Pool. BRIDGE tokens which can be acquired from Farms or a supported DEX can then be staked in the Reward Pools. Unlike Liquidity Mining & Farms no LP token is required.
BRIDGE holders can choose the token they would like to be rewarded in - as they can stake their BRIDGE in any Reward Pool (no LP token required). As an example: you can stake your BRIDGE tokens into the Ethereum USDC Reward Pool to start earning a share of the 70% protocol incentive or bridging fees when USDC is bridged to the Ethereum Network.
IMPORTANT: BRIDGE tokens can only be withdrawn from a Reward Pool by burning 30% of the deposited BRIDGE tokens. This feature is necessary to incentivize long-term/infinite stakings and disincentivize big holders from permanently jumping from pool to pool which would lead to less rewards for the smaller holders. The Reward Pools should be regarded as a way to earn regular passive income from protocol incentive or bridging fees, long-term.
The rewards per user will be determined by a) the collected protocol incentive or bridging fees, respectively (and thus the bridging volume in the asset of the Reward Pool), and b) the share of the pool - which is:
Reward Pool Share =
User Amount of BRIDGE Tokens in Pool / Total Amount of BRIDGE Tokens in Pool
The APR of Reward Pools shown on the website is an estimate and average calculated by using the current staking amount and bridgings from the last 7 days (except for the initial days after a new token listing when no 7-day history is available. In this case, the longest available period between 24 hours and 7 days is taken). The actual Rewards depend on the amount staked as well as the size & amount of bridgings that occur in the future. The greater the amount staked and the size & amount of bridgings, the higher the collected protocol incentive or bridging fees, meaning the higher the rewards.
Due to the inflationary nature of the BRIDGE token and assuming more users entering the Reward Pools, users will have to deposit more BRIDGE tokens over time if they want to keep their Pool Share constant (but protocol incentive or bridging fees should also increase over time so that users can earn the same rewards with a lower Reward Pool share).
This design is intentional due to the no impermanent loss nature of Liquidity Provision in the Cross-Chain Bridge. The fees dedicated to Reward Pools will be randomly sent roughly once per day (if a transaction occurs).
Most new assets that get self-listed (or whitelisted by the team) generate a Reward Pool.
Technical details can be found in the RewardPools - Smart Contracts section of this GitBook.
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