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TokenomicsRewards SystemIncentive RewardsHow Incentive Rewards Work

How Incentive Rewards Work

The Incentive Flow:

  1. Incentivizer Deposits Rewards: A third party deposits tokens into a pool’s incentive contract for a specific epoch
  2. Users Vote for the Pool: veDXLYN holders allocate voting power to the incentivized pool
  3. Incentives Distributed: At epoch end, rewards are distributed proportionally to voters
  4. Voters Claim Rewards: Users who voted for that pool can claim their share

Critical Point: Incentive rewards go to voters (veDXLYN holders who voted for the pool), not necessarily liquidity providers. However, savvy users both vote for AND provide liquidity to pools they’ve incentivized.

What Are Incentive Rewards?Adding Incentives to Pools