🎁Incentives

Profitability boosts for early users

Incentive is a way of rewarding users of a DeFi protocol, through the injection of additional earnings into a vault.

At new vault launched 🎉

When a new vault is created, Lobster allocates an incentive budget, to be delivered as the strategy unfolds. This marketing budget does not exceed a certain total amount (5k$ for our first strategy), and guarantees the smooth running of the strategy from the beginning and the reward of our early adopters.

These incentives are delivered over time and depend on 3 parameters:

• The time since the strategy was launched: Incentives amounts decrease over time.

• The TVL of the vault: The more TVL a vault has, the more we consider that it is working well, and therefore the less we need to incentivize it.

• Strategy performance: As these incentives are offered to boost a strategy, it goes without saying that strategies that perform well in terms of APY will have fewer incentives.

Similarly, the incentives granted to a vault will never exceed 10% APY on the strategy, and are variable depending on the parameters mentioned above. We call this mechanism "targeted incentives".

Those incentives are distributed fairly to all users, directly in the vault. Any users can withdraw anytime their initial investment along with their share of incentives.

This initial incentive corresponds to the beginnings of our future tokenomics, of which we will talk about soon.