Basilisk introduces a unique mechanism for users that maintain the 5% Liquidity eligibility threshold. They can disqualify ineligible users for a bounty, similar to running a liquidation bot, either directly through the user interface or with searcher bots.
A "bounty" equivalent to a base bounty is placed on an account, which can be claimed by eligible Liquidity participants. Vigilant users, or 'bounty hunters', can keep track of available disqualification bounties on the Bounties page. They can disqualify ineligible users by selecting "claim" and confirming the transaction.
This disqualification system prevents accounts with expired Liquidity from receiving unearned platform fees and stops ineligible users from receiving $BLSK emissions that fall below the 5% Liquidity threshold. Additionally, bounty hunters receive a base bounty for relocking Liquidity for users that have enabled "auto-relock", and for performing auto-compounds on behalf of users that have enabled this feature.
This method not only decentralizes actions taken on the protocol but also rewards users for removing ineligible participants. It benefits both the protocol and the participants themselves. To minimize the risk of disqualification, users are advised to maintain their Liquidity threshold above 5%. Disqualifications due to expired locked Liquidity can be avoided by enabling the “auto-relock” function on the Manage page.
Additional Points to Note
Bounty hunters must maintain the 5% Liquidity threshold status and have deposited assets to claim bounties.
Claimed bounties are paid in Vesting BLSK.
The base bounty is dynamic and depends on searcher bot demand and the price of $BLSK.
Bounties are prioritized so that only one bounty per account is available at a time, although there can be up to three bounty types:
The primary priority is given to expired lock treatment (removing expired locks from the pool or re-locking Liquidity with auto-relock enabled). This prevents the account from continuing to receive unearned platform revenue. The bounty for removing an expired lock equals the base bounty.
The secondary priority is given to preventing accounts from continuing to receive unearned BLSK emissions that fall below the 5% eligibility threshold. The bounty for emissions ineligibility equals the base bounty.
The final priority is given to auto-compounding. When an auto-compound event is triggered, the protocol outsources the execution of the transaction to bounty hunters. AutoCompound bounties are funded by the fee paid by the user that will be compounded. This amount starts small and increases over time as more pending rewards accrue to be compounded.
Self-disqualification: performing an on-chain action within the Dapp (deposit/claim/lock) will trigger a disqualification if the user falls short of the parameters outlined above.