xBTC Early Vault Bonus Update: Now Bigger, Simpler, Fairer

5 min readJul 4, 2025

TL;DR

At Typus Finance, we believe in agile development and listening to our community. After observing the initial participation patterns and feedback for our xBTC Early Bird Bonus program, we are implementing an update to better serve and reward every single participant.

Effective immediately, we are making the following change:

The “Elite Early Vault Bonus” tier has been removed.
Its entire 2,400 SUI budget has been reallocated directly to the “Liquidity Yield Boost”.
This more than doubles the Liquidity Yield Boost pool from 1,600 SUI to 4,000 SUI, significantly increasing the baseline rewards for all depositors, regardless of size.

The premier “Whale Early Vault Bonus” remains completely unchanged. The total program prize pool remains 8,000 SUI.

Why Are We Making This Change?

Our primary goal for this program has always been to bootstrap deep, healthy, and decentralized liquidity for the new xBTC Covered Call Vault.

After launching on July 1st, we recognized an opportunity to simplify the incentive structure and maximize value for the broadest possible range of community members. By reallocating the Elite tier’s budget to the universal Liquidity Yield Boost, we create a more democratic and powerful rewards program.

This is a win-win scenario:

For Our Users: Every participant now earns a share of a much larger baseline reward pool. This change directly increases the potential yield for the vast majority of our users and makes participation more attractive and straightforward.
For the Protocol: A simpler structure lowers the barrier to entry and encourages wider participation, helping us build the robust and distributed TVL foundation that benefits the entire Typus ecosystem.

We believe in making data-driven adjustments that enhance our products and reward our community more effectively.

The New Program Structure

The rules are now simpler than ever. Here is the updated structure:

1. The Whale Early Vault Bonus (4,000 SUI) — Unchanged

This premier tier is for our largest early supporters and its rules have not changed.

Total Pool: 4,000 SUI.
Eligibility: Top 30 users with a Qualifying Deposit of at least 0.1 xBTC.

2. The Enhanced Liquidity Yield Boost (Now 4,000 SUI) — Upgraded

This is the universal reward pool for every participant in the program.

Total Pool: 4,000 SUI.
Eligibility: Every single user whose deposit is recorded in at least one of the two snapshots.

By participating, you are automatically eligible for the Enhanced Liquidity Yield Boost and, if your deposit is large enough, the Whale Bonus.

Updated Frequently Asked Questions (FAQ)

To reflect these changes, we have updated our official FAQ.

Q1: How can I participate in this program?

A: Simply deposit xBTC into the “xBTC Covered Call Vault” before one of the two snapshot times (July 4 or July 11, 16:00 UTC+8). Your funds will automatically be included in the reward calculations.

Q2: What is the latest I can deposit to be eligible?

A: To be included in the final snapshot, you must deposit by July 11, 2025, 16:00 (UTC+8). We recommend depositing well in advance to avoid any potential delays.

Q3: How is my “Qualifying Deposit” calculated?

A: We take two snapshots (July 4 & July 11). If you are in only one snapshot, that amount is your Qualifying Deposit. If you are in both, we use the higher of the two deposit amounts as your Qualifying Deposit.

Q4: How do I qualify for the “Whale Bonus”?

A: Qualifying for the Whale Bonus is a two-step process:

Eligibility: First, your single “Qualifying Deposit” must be ≥ 0.1 xBTC. Meeting this requirement makes you eligible to be ranked.
Ranking: After the program ends, we will rank all eligible users by the size of their Qualifying Deposit. The 4,000 SUI prize pool is exclusively for the top 30 users from this ranking.

Q5: How is my bonus calculated?

A: For the Enhanced Liquidity Yield Boost, your reward is your simple pro-rata share of the entire 4,000 SUI pool. For the Whale Bonus, the formula is:

Your Whale Bonus = (Your Qualifying Deposit / Total Qualifying Deposits of the Top 30 Winners) * Final Whale Prize Pool.

Q6: What happens if MORE than 30 users qualify for the Whale Bonus?

A: The Whale Bonus is exclusively for the top 30 eligible users, ranked by deposit size. If 31 or more users meet the ≥ 0.1 xBTC eligibility, only the top 30 with the highest deposits will win and share the prize pool. Users ranked 31st or lower will not receive a share of the Whale Bonus, but are still entitled to the general Enhanced Liquidity Yield Boost.

Example: The “Top 30” Rule is Triggered
Condition: 31 users qualify, but only the top 30 are eligible for rewards.
Result: The pro-rata calculation is based only on the deposits of the 30 winners. If their combined deposit is 4.2 xBTC and the prize pool is 4,000 SUI, a winner “Alice” who deposited 1 xBTC would receive: 4,000 SUI * (1 / 4.2) ≈ 952.38 SUI.

Q7: What happens if FEWER than 30 users qualify for the Whale Bonus?

A: In this case, the final prize pool is determined by a “Baseline Deposit Target.” The target for distributing the full 4,000 SUI prize pool is 3 xBTC. If the actual total deposit from all winners is less than this target, a smaller, proportional prize pool is distributed instead.

Example 1: Target Met by Deposit
Condition: Only 20 users qualify, but their total deposit is 3 xBTC.
Result: Because the total deposit meets the 3 xBTC baseline, the full 4,000 SUI prize pool is used and shared among all 20 winners. A user who deposited 0.6 xBTC would receive:4,000 SUI * (0.6 / 3.0) = 800 SUI.
Example 2: Target Not Met by Deposit
Condition: Only 20 users qualify, and their total deposit is only 1.5 xBTC.
Result: Because the total deposit is less than the 3 xBTC baseline, the prize pool is scaled down. The new, smaller prize pool is:4,000 SUI * (1.5 / 3.0) = 2,000 SUI. This 2,000 SUI pool is then shared among the 20 winners. A user who deposited 0.1 xBTC would receive:2,000 SUI * (0.1 / 1.5) ≈ 133 SUI.

Q8: What happens to my deposited xBTC, and what are the risks?

A: Your deposited xBTC is used as collateral to sell weekly Bitcoin call options, which earns your base yield. The primary risk is related to the cash-settlement process if the option expires with Bitcoin’s price above the strike price. In this case, a payout is made from your xBTC collateral to the option buyer, reducing your principal. Your xBTC is never sold, but its total amount may decrease.

Q9: Will my deposit be locked?

A: Yes, funds are locked weekly. The vault’s auction runs every Friday at 16:00 (UTC+8). Once your funds enter an auction, they are locked as collateral until the next auction settles one week later. If you wish to withdraw, you must click “Unsubscribe” in the vault’s interface before the next auction begins.

Q10: When will the rewards be distributed?

A: All SUI rewards will be distributed to your wallet within one week after the program concludes on July 15, following data verification.

A Clearer Path Forward

This program update makes our xBTC bonus event simpler and more rewarding for everyone involved. We thank our community for your early participation and feedback, which allowed us to make this positive adjustment.

Ready to put your xBTC to work? ➡️ Deposit into the xBTC Vault Here