USDC Campaign

We currently incentivize USDC suppliers in a way that favors single-asset looping, which does not increase net USDC supply. The protocol incentivizes net USDC supply—defined as deposits minus borrows—using time-weighted net supply (TWNS).

Mechanics

• Net Supply: Deposits − Borrows

• TWNS (units: $·seconds): Σ(Net Supply × Time Duration)

• User Share: User TWNS / Total TWNS

• User Rewards (per epoch): Total Epoch Rewards × User Share

• APR (units: %/year): (Total Rewards / Total TWNS) × Seconds_in_Year

  • Derivation: APR = Total Rewards ÷ (Total TWNS / Seconds_in_Year)

Example (epoch length = 1,000 s)

Events

• t=0: Alice deposits 1,000 USDC

• t=100: Bob deposits 2,000 USDC

• t=200: Bob borrows 2,000 USDC

• t=400: Alice deposits 1,000 USDC (Alice total deposits now 2,000)

• t=800: Alice withdraws 1,000 USDC (Alice deposits back to 1,000)

• t=900: Alice borrows 500 USDC (Alice net supply 500)

TWNS

• Alice: 1,000×400 + 2,000×400 + 1,000×100 + 500×100 = 1,350,000

• Bob: 2,000×100 = 200,000

• Total TWNS: 1,550,000

Rewards split (1 APT total):

• Alice: 1,350,000 / 1,550,000 ≈ 87% → 0.87 APT

• Bob: 13% → 0.13 APT

If 1 APT = $4, then: APR = (4 / 1,550,000) × 31,536,000 ≈ 81.38%.