Ensuring Continuous Eligibility for BLSK Rewards

Market movements and the intrinsic volatility of risk assets may cause a user's eligibility for BLSK rewards to shift over time.

A Practical Example: Varying Eligibility

Take, for instance, Thom, an active Basilisk user. Thom holds Liquidity worth $5 on zkSync (BLSK/ETH) along with $100 in USDC deposits. This composition places Thom well above the 5% threshold, ensuring his eligibility for emissions. However, a 5% dip in the ETH price could reduce the value of Thom's Liquidity under $5, making him fall short of the 5% requirement for earning emissions.

To keep track of such shifts, the Basilisk protocol maintains a continuous check on the eligibility status of users, determining "who's in, who's out."

Notifications for Eligibility

When a user meets the eligibility criteria, banners across all pages show "Emissions active."

However, if a user's status changes and they're no longer eligible, a "boost inactive" notification appears at the top of each page. This notification indicates the amount of additional Liquidity needed to requalify. To start accumulating $BLSK rewards again, click on "zap into Liquidity" and follow the steps provided.

Strengthening Eligibility Consistency

To heighten the probability of maintaining eligibility for BLSK rewards, it's recommended to maintain a surplus above the 5% threshold as a cushion against potential market volatility.

Let's consider another Basilisk user, George. George deposits $1,000 USDC in the money market and locks a minimum of $50 of Liquidity to qualify for BLSK rewards. To protect his eligibility status from market fluctuations, George opts to lock $60 in Liquidity, which is 10% more than the necessary threshold.

Furthermore, users can fortify their eligibility status by enabling the auto-compound and auto-relock options on the Manage Basilisk page. These automated mechanisms provide additional layers of stability to users' eligibility for BLSK rewards.