BGT-Incentivized Debt

Passive BGT rewards

Addresses with active loan or loop positions will be eligible to earn passive BGT rewards. The only eligibility criteria is that the position must be opened - or an existing position extended - after block 5623025

Rewards will be awarded to users as an LST via Merkl.

Reward Calculation and Distribution

Snapshots will be taken at regular intervals of user positions, and the following methodology applied to calculate the weight of each eligible user's rewards:

timeToExpiry = if(endDate > block.timestamp) {endDate - block.timestamp} else {0}

weight = borrowed * sqrt(timeToExpiry)

BakerDAO will retain up to 10% of LST rewards distributed to users. This will be used for partnership deals with LST providers and for protocol revenue