IBT Additional Rewards

This page describes the reward proxy mechanism on the Principal Token contract.

Some ERC4626 Interest Bearing Tokens may be integrated into a reward program (on any protocol), and holding these IBTs makes the holder eligible to claim rewards. As the PT holds all the IBTs deposited by the users who tokenized their yield, the PT would need to claim these rewards on behalf of the depositors.

For such eligible IBTs, the Spectra protocol can deploy a rewards proxy on top of the associated Principal Token and add the logic to claim these rewards. These rewards would be sent to a Spectra DAO address and redistributed via governance.

Last updated