OP rewards are now live at Exactly Protocol

Exactly Protocol recently launched a rewards initiative that allows its users to earn $OP tokens. Under this rewards program, up to 600,000 $OP could be claimed during the next 6 months through a new Distribution Model by depositing and borrowing at Exactly on Optimism.

Gabriel Gruber, founder of Exactly Protocol, said, “Our team is committed to making DeFi more accessible to everyone, and we believe onboarding users within the Optimism ecosystem with a robust incentive rewards program is an important step towards achieving this goal.”

Exactly Protocol on Optimism

Exactly is a decentralized and open-source protocol that provides an autonomous fixed and variable interest rate market enabling users to lend and borrow at variable and fixed interest rates. The protocol also provides a user-friendly interface that makes accessing the DeFi credit market easy for entry-level users.

How to participate in Exactly Protocol’s Rewards Program

The protocol launched on Optimism in early March and has obtained (via the Partner Fund) up to 600,000 $OP tokens grants to distribute to its users. Rewards will be distributed over six months¹ to all users who deposit/borrow at variable interest rates in ETH and USDC markets; and to all users who take fixed borrows in ETH and USDC markets within the Optimism network.

To get your share of the rewards, head over to our web app on Optimism and follow these steps:

1. Connect your wallet to the protocol.
2. Deposit your tokens or take a borrow in the ETH or USDC markets.
3. Finally, claim your rewards!

Important: If you were already interacting with Exactly Protocol on Optimism markets before the start of the rewards program, you’re already earning rewards!

Unlike other reward distribution models, in the case of this campaign, rewards are automatically accounted for every second. This means users can claim their rewards in OP tokens whenever they wish because the rewards will be available by updating their value every block.

Exactly Protocol Introduces New Rewards Distribution Model

To optimize the use of the available token supply, the protocol has introduced a new distribution rule that adjusts the distribution of rewards based on the current percentage of the target loan volume.

Exactly also adds a feature that adjusts the rewards given to borrowers and liquidity providers based on the utilization rate of each pool. This ensures the token distribution is aligned with the protocol’s usage and demand, optimizing the system’s overall performance.

How Exactly implements rewards distribution

Reward programs typically rely on a fixed emission schedule over time or a predetermined distribution function rule. However, these approaches could be more effective in attracting a diverse user base and often leading to a concentration of rewards among a few select wallets.

Exactly Protocol’s team has developed an adaptive model that utilizes a recursive token distribution system in continuous time to address this issue. The model implements an incentive function based on how closely or far the program’s objectives are met during the rewards period.

This new model has two distinct modules:

1. The distribution module determines the number of tokens allocated during each time frame (determined by two consecutive protocol transactions) depending on how close we are to our target.
2. The allocation module determines the proportion of tokens allocated to each protocol user class (depositors or borrowers) depending on the pool utilization level in each period.

This new model defines rewards’ APRs (Annual Percentage Rates) based on various parameters, including the value of deposits & borrows in each pool, the $OP token price, and the Utilization rate of each pool. This means that the rewards user’s earnings will be optimized based on the current conditions of the protocol. The RewardsController, audited by Coinspect, is the smart contract responsible for accounting and allocating rewards to each user.

Learn more about the math behind our new Rewards Controller at this link.

Building on our commitment to promote transparency with our community, updates on rewards distributed across all Exactly Protocol markets will now be shared every four weeks.

1. The distribution schedule may vary depending on the adoption level. If any tokens remain undistributed after the initial six-month period, the protocol will provide an additional two-month window to complete the distribution.

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