Incentives

Incentives within the Tokos Protocol encourage active participation from suppliers and borrowers, enhancing liquidity and the overall efficiency of the protocol. It should be noted that there is no one source of various incentive initiatives, but they can originate from multiple sources, including external entities interested in promoting liquidity for specific reserves.

Liquidity Pool Incentives

Incentives can also be applied to the supply or borrow side of Tokos liquidity pools, promoting activity of the incentivised reserve. By offering rewards to suppliers and borrowers of certain assets on Tokos, the visibility and adoption of tokens can be boosted. Such external incentives require approval.

Approved incentives are distributed continuously over time proportional to the amount of liquidity a user supplies or borrows. Users can claim these rewards via the protocol’s incentive controller, which manages the allocation and distribution of incentives. This system adds value for those actively participating in the protocol while aligning user interests with the health and stability of the Tokos ecosystem.