Standard (External) Rewards

In Bancor version 3, rewards can be distributed to a liquidity pool in any token using the Standard Rewards contract. For example, a project could distribute its earnings to token holders by creating a rewards program that distributes USDC.

This mechanism also enables rewards to be distributed in 2 different tokens at the same time, referred to as Dual Liquidity Mining.

Standard Rewards will be used to distribute BNT rewards in the Bancor V3 bootstrapping campaign.

Rewards earned from a Standard Rewards program do not automatically compound, as they are a different token than the one provided - they must be claimed.

Standard Rewards vs Auto Compounding Rewards

Standard Rewards differ from Auto Compounding Rewards in the following ways:

Standard RewardsAuto Compounding Rewards

Reward token

Any token (deposited or non-deposited)

Deposited token only (i.e. for a DAI deposit, rewards can only be in the DAI token)

Requires manual opt-in

Yes - users must manually: 1. Join the rewards program using a join transaction (stake bnTokens) 2. Claim rewards using claim orstake transaction 3. Exit the program using leave to return their bnTokens

No - users receive the rewards automatically by holding bnTokens

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