The RISE Incentives
A next-generation user and protocol incentives layer.
Last updated
A next-generation user and protocol incentives layer.
Last updated
The RISE is our incentives layer that leverages Blast Native Yield & Blast Gold to generate rewards for users, protocols and liquidity providers on Fenix. Protocol & User veFNX Rewards To reward protocols and users based on productivity on Fenix, The RISE accounts for voting incentives deposited and from new 6 month (maximum) locks of veFNX. Rewards from the RISE are given as veFNX every 4 weeks and is funded from voting yield from a team veNFT worth 10% of the initial supply and Blast Native Yield.
This design encourages productivity from users and protocols on Fenix. It gives protocols a boost on their incentives to efficiently bootstrap liquidity (if new) and existing ones a boost on sustaining/growing liquidity at minimal cost whilst incentivising trading volume for their tokens.
We believe this is important to get right for Blast protocols as the cost of building liquidity will be a significant barrier for many. Often a make or break given the delicate nature of getting the balance right between demand and sustainability. Importantly, it also encourages long-term alignment with the Blast ecosystem through a 6 month lock. This system is analogous to Aerodrome Flight School which in of itself is operating as the protocol and users incentives layer for the entire BASE chain. Through Blast Native Yield, Fenix significantly boosts the capacity of this incentives layer to drive value for ecosystem participants on Blast.
Boosting the power of Blast Gold. To supercharge the capacity of Fenix to incentivise growth on Blast through the RISE, we will match incentives provided by protocols with Blast Gold on a pro-rata (proportional) basis. Given the dynamic nature of finding the balance between incentives and demand, the RISE may change over time. Other ways which we believe would be of net benefit to Blast include:
Allocating Blast Gold as voting incentives to core ecosystem pools like BLAST/WETH & WETH/USDB to drive deeper liquidity and trading volume for the pairs that drive the most trading volume and utility on the network.
Direct Gold rewards for new veFNX locks to lower barriers of entry for protocols and users who are making a long-term commitment to the ecosystem.
Blast Native Yield for FNX LPs. Fenix will couple Blast Native Yield and market making vaults provide FNX LPs with an additional source of rewards. LPs in FNX ICHI vaults will also earn non-inflationary rewards.
We continue with the normal ve(3,3) model where all pools receive FNX emissions. Specific to FNX pools, will be Blast Native Yield as non-inflationary rewards for LPs. As an LP this means your underlying deposit will grow over time in the paired blue-chip asset whilst you also earn FNX rewards. FNX pools receiving Blast Native Yield:
FNX/USDB
FNX/WETH
FNX/BLAST
Summary of Benefits
It benefits Blast native projects who will receive a boost on incentives provided which results in them paying less for their liquidity whilst driving enhanced trading demand for their token through FNX emissions.
Attracts more protocols from outside of Blast who will benefit from the multiplicative effect on rewards from the RISE and Gold, which may not be available on other chains.
Increasing the effective value for Gold through a system that requires revenue input for Gold reward allocation.
Lowers the barrier of entry whilst encouraging long-term investment into Blast through long-term veFNX locks.
Builds deeper liquidity for core ecosystem assets like USDB, WETH & BLAST which represent +80% of all trading volume on Blast. Their growth directly benefits the Blast business model which will provide more Native Yield for the ecosystem.
Native Yield for FNX LPs drives a higher foundation of demand for the FNX token, which will support veFNX holder and LP emissions value.
Buybacks will act as a constant deflationary force on FNX.
