iBGT rewards

How does Proof of Liquidity reward users?

Proof of Liquidity rewards users with BGT. That BGT can be delegated to Berachain network validators in order to earn even more incentives.

How does Infrared reward users?

Infrared users receive rewards when they deposit to an Infrared vault. As the assets in the vault earn BGT from interacting with Proof of Liquidity, Infrared’s smart contracts issue iBGT back to depositors of the vault.

Users can then decide to either:

1. Use their iBGT throughout DeFi
2. Stake their iBGT to earn the delegation rewards associated with BGT.

What can I expect from staking iBGT?

When an Infrared vault earns BGT, that BGT is used to power Infrared validators, which earn a variety of rewards from bribes and native dapps.

Thus, staked iBGT receives these rewards.

APR calculation

Explains the method to calculate the APR of rewards distributed by the IMultiRewards contract. The APR represents the annualized rate of rewards for stakers and is derived based on the rewardRate function, which specifies rewards distributed per second.

1. Accessing reward rate

   The rewardRate is a component of the Reward struct, which stores data on rewards distributed for a specific token in the contract. To get the rewardRate, call the rewardData function:

   (uint256 rewardRate) = IMultiRewards.rewardData(address rewardsToken);
   \_rewardsToken is the address of the rewards token.
   rewardRate returns the number of reward tokens distributed per second.

2. Calculating total reward over a 30-day period

   To calculate the total rewards distributed over a 30-day period, use historical data. Formula:

   30-day reward value = sum_{n=1}^{30} (rewardRate_n × 86400 × historical iBGT price at day N)

   Steps: For each day, multiply the reward rate for that day (rewardRate_n) by the total seconds in a day (86,400). Convert the daily reward into asset value using the historical price of iBGT for that day. If historical data is not available (e.g., within the first 30 days after launch), use as much historical data as possible for the calculation.

3. Annualizing the rewards

   To annualize the rewards:

   Annual reward value = 30-day reward value × 12

4. Fetching the total staked value

   The total staked value can be found using the totalSupply function in the MultiRewards.sol contract:

   - @notice Returns the number of staked tokens.
   - @return uint256 The number of staked tokens.
     function totalSupply() external view returns (uint256) {
     return \_totalSupply;
     }

5. Calculating the APR

   Finally, calculate the APR using the annual reward value and the total staked value:

   APR = Annual reward value / Total staked value

   Using a 30-day lookback average ensures that large changes do not disproportionately impact the APR.