BLSK Emissions and Max Liquidity Locking APR
BLSK Emissions
Users who deposit but do not add value to the Basilisk protocol will still earn the standard market rates, but they will not be eligible for BLSK emissions.
To activate BLSK emissions on deposits and borrows, users are required to lock a minimum of 5% Liquidity tokens relative to the size of their deposits (in USD terms).
Examples:
User 1: Makes a deposit of $1M USDC on Basilisk with $0 of Liquidity tokens locked. They earn a base rate (APY) but aren't eligible for incentivized emissions.
User 2: Makes a deposit of $1,000 USDC on Basilisk with $50 Liquidity tokens locked. They qualify for BLSK emissions, provided the minimum 5% threshold is met.
This approach creates a self-perpetuating cycle that attracts long-term liquidity and rewards those who align with the long-term success of the protocol.
Max Liquidity Locking APR
On the Markets Page, users can review the Max Liquidity Locking APR and a breakdown of the APR per asset.
How is the Maximum Locking APR calculated?
Definition: The current maximum Liquidity locking APR for a 1 year lock duration
Calculation: The 1 Month Locking APR multiplied by the 1 Year Lock Multiplier (25x)
The 1 month locking APR:
Definition: The current locking APR for a 1 month duration
Calculation: The share of Total 1 Month Locked Annualized Protocol Fees divided by the Total 1 Month Locked share of the Liquidity Pool Size
The share of 1 Month Locked Protocol Fees:
Calculation: The 1 Month Locked Share of Protocol Power divided by the Total Protocol Locking Power
The Total Protocol Locking Power:
Calculation: The sum of (1 Month Locked Share of Liquidity Pool Size * 1 Month Locked Multiplier (currently 1x)), (3 Month Locked Share of Liquidity Pool Size * 3 Month Locked Multipler (currently 4x)), (6 month Locked Share of Liquidity Pool Size * 6 month Locked Multiplier (currently 10x)), and (12 month Locked Share of Liquidity Pool Size * 12 Month Locked Multipler). This gives the Total Protocol Locking Power.
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