SB Token Distribution

Rewards Program

6 Billion $SB tokens are reserved as Protocol Rewards. To receive the rewards, Liquidity Providers will have to stake their Pool LP Tokens on the platform. Traders will just need active trades to qualify for rewards. $SB holders will also be able to stake their $SB tokens to earn more $SB tokens.

$SB tokens will be distributed at a rate based on platform traction and will be subject to change from time to time.

Rewards Distribution

The $SB emitted will be distributed to the various participants and platform pools as part of the protocol rewards, in accordance with the share shown below:

ReceiversPercentage

LP Yield Underwriters

60%

FD Holders

10%

SB Staking Rewards

15%

Treasury

15%

The share percentages are subject to change in the future.

LP rewards Distribution

There could be an “nn” number of pools with different yields and different maturities. The 60% of emitted SB will be assigned to the different pools by the risk factor of each pool

Risk factor of each pool = XX + {(Days to maturity in pool XX * Yield of Pool XX)/∑(PnM∗PnY)∑(P_{n}M*P_{n}Y)}

where PnMP_nMis Pool1 maturity, Pool2 Maturity, Pool 3 Maturity…..Pool n Maturity

and PnYP_nYis Pool1 yield, Pool2 yield, Pool 3 Yield…..Pool n Yield

XX is a constant and it will be a governance function where the value of X is defined asX=(min,max:0,1)∣Xinitial=0X=({{min,max: 0,1}}) | X_{initial} = 0

SB ~ Allocated ~to ~each~ pool = (Risk~ factor ~of ~each ~pool / ~SUM ~of ~all ~pool ~Risk~ factors) * ~Emission~\

For a particular pool, a given Liquidity Provider(LP) will receive a reward proportional to the share of their contribution. Consider the example below

  • Say 90 $SB/sec are being emitted

  • Of these, 60%, that is 54, are to be distributed as LP Pool rewards

  • Three Pools with maturities in 30 days, 90 days and 180 days exist

  • The table illustrates the parameters associated with each pool:

30-Day Pool90-Day Pool 180-Day Pool

Yield

10

12

18

300

1080

3240

0.06493506494

0.2337662338

0.7012987013

SB allocated

3.5064935

12.623377

37.870130

  • For an LP in the 180-Day Pool contributing 25% of the pool liquidity, the reward thus becomes 9.467532 SB/sec

It's to be noted that the above example for distribution holds only for the time period an LP's share relative to the total pool remains constant. In the events of the LP's share relatively increasing/decreasing, the rewards will be recalculated as per the proportional logic but from the point, such a change event took place till the time the next change event occurs.

Thus, say if, at some point in the previous example, the LP's contribution to the 180-Day Pool rises to 30% (relative to the total pool size), their reward becomes 11.361039 SB/sec.

75% of all external farming rewards will go to the Yield Underwriters, again distributed proportionally to an LP as per their contribution.

Traders Rewards Distribution

Traders holding open positions (i.e. who have purchased FDs and not redeemed their FDs) will be eligible for $SB rewards proportionate to their relative position in the Trader Pool

Reward ~ = ~($SB ~emitted ~for ~Traders)~ *{(Funds~ of~ Trader) / (Total~ Funds~ in ~Traders~ Pool)}\

Suppose 90 $SB/sec are being emitted, so 10% of this, i.e. 9 $SB/sec are to be distributed among the traders. Further, suppose that 1,000,000 USDC are locked in the Trader Pool, with some Trader with a 100,000 USDC open position.

Then this trader's reward will be given as:

9*(10^5/10^6)= 0.9 ~$SB/sec

Distribution to Treasury

  • The Treasury will be initialized with 476,252,486 SB upon platform launch

  • Of the 6 Billion protocol rewards, 10% of the emission every second shall go to the Treasury

  • 25% of all externally generated yield shall go to the Treasury

  • 20% of all USDC fees shall go to the treasury

  • Funds from the Treasury utilised for yield generation will be returned completely back to it

The Treasury Fund is set in order to cover any unforeseen losses. Furthermore, the treasury funds will be insured, a possibility currently being actively explored.

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