$SMT rewards: 99% of community votes for policy change

Last month, 99% of the $SMT community overwhelmingly voted in favor of a new rewards policy that will incentivise the issuance and trading of real-world assets on chain.

In anticipation of the dOTC v2 release, we have started migrating the system over to a more decentralized and permissionless environment. This is in line with Swarm building and gifting a public goods service to the DeFi community, supporting the growing liquidity of tokenized real-world assets.

On 05 August 2024, the permissioned version of dOTC was replaced with Open dOTC, or dOTC v1. In this version, no permissions are required. The platform can be accessed by heading to app.swarm.com or via dOTC.eth.

With the upcoming v2 release of dOTC, investors and enterprises will have the option of trading with counterparties on both a permissioned or non-permissioned basis, depending on their compliance requirements. We will release v2 over the next few weeks/months. Head to this medium post for more information on the new core features of dOTC v2.

New $SMT rewards policy

To coincide with a fully permissionless and decentralized dOTC platform, Swarm is introducing a new rewards policy as voted on by the $SMT community.

As of 05 August 2024, $SMT rewards will be calculated based on a total value locked (TVL) metric across different parts of the protocol:

• RWA staking rewards are calculated based on the TVL of the SMT staked
• RWA holder rewards are calculated based on the TVL of the RWA assets held in a user’s wallet or in qualifying dOTC offers, multiplied by a 4x TVL boost
• Liquidity rewards are calculated as the TVL of the RWA offers that are held within dOTC as long as they are within 20% of the market price. The closer to the market price, the higher the rewards. The TVL will enjoy a 2x RWA TVL boost. Furthermore, the rewards will be expanded to other “in-market” trading modules that will be introduced in future.

4X boost

The 4x boost for RWAs means that holding those assets are valued at 4x when considering the total rewards split.

RWA offers on dOTC get an additional 2x rewards boost.

The idea is to incentivize not only holding RWAs (4x) but also adding liquidity by placing realistic offers (2x).

In this new rewards system, we are no longer allocating a percentage of weekly rewards towards each category, but rather are considering RWA Holders, RWA Stakers and Liquidity Providers in Open dOTC on a pro rated basis.

Qualifying offers

The criteria for qualifying offers consists of:

• Not completed (not yet filled)
• Not canceled
• Not expired
• Not private
• Priced within 20% of the current market price of the asset pair.
• For asset pairs which we have a price feed for.

For more information, please visit the $SMT GitHub page.