LP incentives

Distribution structure

The distribution of TETU through emissions will last for 4 years and during that emissions period the LP vaults will be incentivized. This distribution of emissions rewards is carried out constantly and has been structured into 28-day reward cycles until the end of the emissions period. At the end of each 28-day period the rewards distributed to the LP vaults will be reset. When each new 28-day reward cycle begins, some vaults may receive relatively more rewards while other vaults may have reduced xTETU incentives. The structure of each new cycle of rewards is always announced on Tetu's official Medium.
Attention: The 28 day rewards cycle takes place at the same time for all Tetu users, different from the 28 days of the Reward Boosting System whose period start and end dates are subject to each individual position.
According to Tetu Tokenomics 70% of TETU emissions will be distributed to users through Yield Farming. As previously stated, it will take 4 years for the entire TETU supply to be fully minted.

Cycle rewards adjustments

The structure of rewards for each cycle can be influenced by rewards of external projects, if the farming performance of a project's target strategy is negatively affected there will be an economic inclination to reduce the rewards allocated to it. The TETU buyback capacity of each vault also influences the xTETU distribution in each cycle, there is generally an economic inclination to provide greater incentives to vaults with a higher TETU buyback performance and reduce the xTETU distribution allocation for vaults that had poor TETU buyback performance.

TETU Liquidity Incentives

The liquidity level of TETU in the market also suggests an amount of xTETU rewards to be allocated to TETU LP so that there is sufficient liquidity for TETU trading. Liquidity is important for investors to be able to build a TETU position effectively without having a price impact too high and losing money on slippage costs. Liquidity is also important for TETU Yield Farming profits to be realized.
Last modified 1mo ago