Reward auctions

As the protocol deploys gigaAssets to various DeFi verticals and protocols, the resulting yield originates in various tokens or even points. Managing this dispersion of assets would be highly inconvenient for Enjoyoors users, so reward auctions are designed to streamline the process and enhance the user experience.

In a nutshell, reward actions are smart contracts deployed on supported blockchains that periodically auction off accumulated rewards for gigaAssets on behalf of the orchestrator. Auctions offer tokens and points to participants who bid to acquire them at a fair price nominated in gigaAssets. If points are non-transferable, auction participants should wait until the protocol claims token rewards in exchange for points distributed to them afterward.

Here is a diagram that illustrates the flow of reward auctions:

Figure 6: How reward auctions work

1. The Target Protocol generates rewards and sends them to the Rewards Treasury.

2. The Rewards Treasury emits the corresponding event.

3. The Relayer reads the event from Rewards Treasury.

4. The Relayer reaches a consensus.

5. The Relayer broadcasts signed transactions to the Auction.

6. The Participant starts an auction.

7. The Participant makes a bid for open lots.

8. The Auction chooses the auction winner.

9. The Participant receives a reward voucher for winning the auction.

10. The Auction issues a reward voucher for the winner (Participant).

11. The Auction sends a portion (determined by Governance) of gigaAssets to the Insurance Pool.

12. The Auction sends gigaAssets to gigaCDP. These funds are distributed to the depositors as rewards for their participation.

13. The Winner (Participant) redeems rewards using a reward voucher from Treasury.