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Lend and Borrow Campaigns

Incentra supports lending and borrowing protocols to reward users for supplying collateral in a vault/pool or borrowing from a vault/pool. The currently supported protocols are Euler, Aave, and Morpho.

Lend/Borrow Campaigns for Euler Finance

  • In lending campaigns, rewards are allocated based on each user’s share of the total time-weighted average (TWA) balances of the corresponding eToken among all eligible users.
  • In borrowing campaigns, rewards are allocated proportionally to each user’s share of the average debt within the vault. To accommodate the increasing debt due to interests, each user’s averaged debt is calculated using samples at random points of time spacing around 10 minutes.

NOTE: If the user has multiple sub-accounts, the owner account will receive the rewards for all its sub-accounts.

Lend/Borrow Campaigns for Aave

  • In lending campaigns, rewards are allocated proportional to each user’s time-weighted average (TWA) aToken balance in the pool. Additionally, if IncentivizeNetLending is enabled, a looping penalty is applied. View here for the detailed formula.
  • In borrowing campaigns, rewards are allocated proportionally to each user’s time-weighted average debt token balance in the pool.

Lend Campaigns for Morpho

Only lend campaigns are currently supported for Morpho. Rewards are allocated proportional to each user’s time-weighted average (TWA) vault shares balance. The vault shares represent the user’s proportional ownership of the underlying Morpho pool collaterals.

Brevis fetches eToken, vault shares, and debt data directly from the blockchain, periodically updates balances for all eligible users, calculates individual rewards, and generates zero-knowledge proofs (ZKPs) to ensure the correctness of these calculations. These ZKPs are verified on-chain and the results will be utilized by the rewards distribution contracts to distribute rewards accordingly.

NOTE: The underlying asset token of a vault needs to be whitelisted first before the vault can be used in a campaign. Please contact us if you’d like to whitelist an asset token that isn’t currently available.