Reward Overview
Last updated
Last updated
Rewards and incentives are provided to holders and stakes of CRUST Exchange utility tokens via several different methods.
A percentage of fees realized losses, and liquidated collateral will go into the $CLP vault, increasing the value of $CLP for holders.
A rewards token is claimable by stakes of $CRUST, $zCRUST, and $CLP. $zCRUST may be staked to earn a portion of $CRUST rewards or vested over time to be claimed as $CRUST. A percentage of fees realized losses and liquidated collateral will be used to buy back $CRUST from supported market places to supply vested $CRUST
Stakers of $CRUST and $zCRUST qualify for a percentage of fees, realized losses and liquidated collateral in the form of $USDT.
With the exception of the first cycle (Cycle 0), in which a set amount of $zCRUST is rewarded over a ~21-day period for $CRUST, $zCRUST, and $CLP stakes, every subsequent reward cycle is 35 days in duration. Any fees earned during the first 14 days of each cycle are paid out in rewards during the last 14 days. The 7 days in between will be used to buyback $CRUST from the open market. The following diagram shows how the cycles overlap and go on in perpetuity.
Buybacks will be made strategically and occur over 2 weeks periods.
To give an example of projected buyback treasury values, a total of $350,000 will be dedicated towards CRUST buybacks assuming $500k in spot trading fees and $1 mill in perpetual trading fees.
The CRUST bought back from the market will be used as a reserve (held in a dedicated wallet) for paying out the rewards in $zCRUST (for $CRUST, $zCRUST, and $CLP stakes). This means no additional $CRUST will need to be minted to maintain this rewards structure.
The fees generated from the perpetual exchange are split according to:
55% in $USDT a. 5% for staking $CRUST and $zCRUST b. 50% for holding $CLP
20% in $zCRUST (via $CRUST buybacks which are kept as a reserve 1:1 for minting $zCRUST) a. 10% for staking $CRUST and $zCRUST b. 10% for staking $CLP
25% to Treasury
A mechanism that will be used to stabilize the supply of $CRUST is a unique $CRUST buyback model. To calculate the percentage of funds from generated fees (- spot, - perpetual) that will be allocated to treasury buybacks ((), we utilize this formula:
