> For the complete documentation index, see [llms.txt](https://docs.bancor.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bancor.network/about-bancor-network/resources-for-daos/liquidity-mining/standard-external-rewards.md).

# 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](/about-bancor-network/resources-for-daos/liquidity-mining/dual-liquidity-mining.md). 

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

{% hint style="info" %}
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. 
{% endhint %}

### Standard Rewards vs Auto Compounding Rewards

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

|                        | Standard Rewards                                                                                                                                                                                                                                                               | Auto Compounding Rewards                                                                      |
| ---------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------- |
| Reward token           | Any token (deposited or non-deposited)                                                                                                                                                                                                                                         | <p>Deposited token only<br>(i.e. for a DAI deposit, rewards can only be in the DAI token)</p> |
| Requires manual opt-in | <p>Yes - users must manually:<br>1. Join the rewards program using a <code>join</code> transaction (stake bnTokens)<br>2. Claim rewards using <code>claim</code> or<code>stake</code> transaction<br>3. Exit the program using <code>leave</code> to return their bnTokens</p> | No - users receive the rewards automatically by holding bnTokens                              |


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.bancor.network/about-bancor-network/resources-for-daos/liquidity-mining/standard-external-rewards.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.