How Are Rewards Distributed?
SoulPeg generates sustainable yields through Venus Protocol integration and distributes rewards transparently. Rewards are delivered in the form of sUSDC and are subject to the same locking mechanics as initial deposits.
How Are Rewards Generated?
The protocol generates real, sustainable yields through two mechanisms:
1. Venus Protocol Yields (Primary Source)
- Your USDC deposits are automatically routed to Venus Protocol
- Venus lends out USDC to borrowers who pay interest
- Current Venus APY: ~7-8% (variable based on market conditions)
- Protocol fee: 7% of generated yield
- You receive: 93% of Venus yield
Example: If Venus generates 7.23% APY, you receive 6.72% APY after the protocol fee.
2. Additional Governance Rewards (Supplementary)
- Early staker bonuses
- Community incentives
- Partnership rewards
- Special campaigns
All rewards are backed by actual yield or protocol revenue, never inflationary mechanics.
How Are Rewards Delivered?
Rewards are issued using the rewardMint() function by the protocol owner (typically a multisig). This function mints sUSDC to specific addresses and inherits their lock status.
- If the address is already locked: new rewards are added to the existing lock
- If the address is new or was never locked: a 1-second dummy lock is applied
Users must still call unlock() before rewards become transferable after any lock period.
Can I Claim Rewards Manually?
There is no claim button or automatic payout. All rewards are delivered directly to your wallet by the protocol. This approach avoids the need for user-triggered on-chain calls and helps reduce gas usage.
Summary
SoulPeg rewards are minted deliberately and conservatively by protocol governance. They are delivered as locked sUSDC and follow the same rules as standard deposits, preserving fairness and security in the reward system.