Pilot Manual: Introduction to Cycles

Tokemak Pilot Manual Introduction to Cycles - 101 Level Reactors Course

Pilot Manual: Introduction to Cycles

101 Level Reactors Course

Transcript


Tokemak operates on weekly cycles that dictate rewards and liquidity deployment.

This is designed to stabilize the system and reduces gas costs & impermanent loss.

Liquidity Providers and Directors earn TOKE rewards proportional to the value of assets they deposit into Reactors and the quoted APR.

Rewards begin accruing at the beginning of a Cycle and can be claimed after the Cycle rollover.

If a withdrawal request is made, rewards continue to accrue for the duration of the Cycle, but rewards will no longer accrue for the following Cycles unless assets are redeposited or the withdrawal request is canceled.

This is because the assets are no longer being deployed productively to venues and therefore no longer earning yield.

Liquidity Directing also follows the weekly Cycles.

During a Cycle, Pilots vote to direct liquidity to their preferred venue. At the end of the Cycle, votes are committed, and during the Cycle Rollover liquidity is redeployed based upon the updated votes.

Pilots are able to redistribute votes gaslessly throughout a cycle to seek the highest yield, and the APR is locked in once a new Cycle begins.

For more information on this subject, see Introduction to Liquidity Directing.

And for more information about exiting tAsset positions mid-cycle, see Introduction to tAssets.

This concludes the Introduction to Cycles course.

Refer to Tokebase.org for additional training materials.


Tokemak Medium - TOKE Rewards/Cycles Reminder

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