🎇Parabol Rewards Program
Parabol reward tokens aren't live on mainnet.
Parabol's rewards program incentivizes users to supply liquidity to the protocol. Typically, liquidity providers earn incentives through market-making fees DeFi or through spreads in centralised exchanges.
Parabol’s Reward program provides additional rewards beyond standard fees to guarantee a robust and liquid market for Parabol tokens. In each epoch, rewards allocated based on the total issuance of stablecoins, distributed among all wallets generating volume. The distribution method for rewards per decile incorporates a half-life approach, whereby each decile of generated volume receives 50% of the remaining rewards.
The program rewards wallets that contribute most to the protocol's depth and liquidity by generating the highest activity, allowing them to earn the highest rewards. For instance, if the overall liquidity level is at 20% of total assets, the top 10% of wallets by volume can earn a base 25% APY without any boosts.
Wallets that using leverage and increasing velocity could multiply these returns to around 137.5% APY. Meanwhile, wallets in the 50th percentile would still earn about 9.69% APY, almost double the risk-free rate. Parabol Protocol may decide to boost the program periodically to further incentivise liquidity providers by offering higher rewards.
Reward tokens will also show commitment to the success of the Protocol and thus provide the basis for community building as well as governance initiatives.
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