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Bonus Rewards

What are bonus rewards and how are they displayed in the app?

What are bonus rewards?

Bonus rewards are incentives for users deposited in a specific prize vault. A rewards program can be created by anyone and set for any prize vault, awarding any ERC20 token.
If a prize vault has rewards that are currently being distributed, a "bonus rewards" APR will be displayed alongside its prize yield on the app.

Claiming Bonus Rewards

Bonus rewards can be claimed from the app's Account page if you are eligible for any. Eligibility is simply being deposited in the vault rewards are set for, during the time they are being distributed!
While you can claim these rewards while the rewards program is ongoing, claiming once when the program is over might make more sense gas-wise.
Once a rewards program is over for a given prize vault, users have 60 days to claim their rewards if they haven't yet. Any remaining rewards still in the rewards contract after that period can be claimed back by the program deployer.

How are bonus reward APRs calculated?

In short, we use the amount of value being distributed as rewards in the next few draws, extrapolated over a period of 1 year and divided by a prize vault's TVL. This determines an estimated APR for the state of bonus rewards of a prize vault.
The exact equation used to calculate a rewards program APR for a vault as it is currently displayed on the app is as follows:
APR=TokenRewardsN    NumYearlyDrawsN    RewardTokenPriceShareTokenTotalSupply    ShareTokenPrice    100\text{APR} = \frac{TokenRewards_N \; * \; \frac{NumYearlyDraws}{N} \; * \; RewardTokenPrice}{ShareTokenTotalSupply \; * \; ShareTokenPrice} \; * \; 100
"TokenRewards" are the number of tokens expected to be distributed in the next "N" number of draws.
On the Cabana app, "N" is currently set to 7.
The implementation of the bonus reward APR calculation can be found here.

Reward Token Whitelist

Since anyone can create these bonus rewards using any ERC20 token, it is important to users that the Cabana app only displays tokens that actually hold value, can be exchanged, doesn't direct them to scam apps, etc. The token whitelist for each network is currently as follows:

Optimism

  • OP (0x4200000000000000000000000000000000000042)
  • USDC (0x0b2C639c533813f4Aa9D7837CAf62653d097Ff85)
  • USDC.e (0x7F5c764cBc14f9669B88837ca1490cCa17c31607)
  • WETH (0x4200000000000000000000000000000000000006)
  • DAI (0xDA10009cBd5D07dd0CeCc66161FC93D7c9000da1)
  • POOL (0x395Ae52bB17aef68C2888d941736A71dC6d4e125)
Want us to whitelist a token not currently on this list? Get in touch through the PoolTogether Discord or send us an email at [email protected].