Paying Stablecoin Rewards to LPs

Some pool operators (whether stablecoin issuers or LPs) further incentivize their LPs by paying additional rewards to FXPool LPs, such as the stablecoin itself (such as XSGD for XSGD:USDC)

These stablecoin rewards may be sourced from a % of stablecoin fiat collateral yields or via some other mechanism

Typical Rewards Farming:

The typical LP incentive flow in DeFi consists of;

1. Seeing a rewards APR on a pool (like on our pages https://app.xave.co/#/pool)

   
2. Depositing liquidity and staking in a rewards gauge

   
3. And finally, earning the rewards token

   

Stablecoin Rewards Farming

On the other hand, the Xave DAO's core development team facilitates paying stablecoin yield sourced off chain via the following process;

1. Over the course of 30 days (lets say from 1st to 30th of the calendar month), we let LPs deposit into an FXPool (we'll use the XSGD:USC pool for example)

2. At the end of those 30 days, both the pool operator (whether stablecoin issuer or LP) run a script that generates a csv file of addresses and how much stablecoin (not USDC) they are owed (via a script agreed on before hand)

3. 10 days after the 30 day period, the pool operator sends the stablecoin from #3 to the core team and it will then be distributed via contract on chain

4. LPs claim via the Xave UI anytime at their convenience (any overlap is still claimable)

5. Wash Rinse Repeat for every month moving forward

The end result looks something like the below screenshot where LPs earn stablecoins (in addition to other rewards tokens and trading fees).