vAZKA Reward Distribution

Unconditional vAZKA Rewards

Only dLP holders can earn vAZKA. A base amount of vAZKA is allocated to all dLP holders. X million vAZKA will be distributed over 10 years as follows:

Conditional vAZKA allocated to Murabaha activity

In the short term and prior to Governance voting on the exact distribution, vAZKA rewards allocated for Murabaha related activity on Arbitrum will be distributed in the following ratios:

Murabaha Pool	% of eAZKA reward for Murabaha Pools(Distribution Ratio)
USDC	35%
USDT	35%
ETH	20%
WBTC	10%

This means if 1000 vAZKA are distributed per second, they are allocated to the USDC, USDT, ETH, WBTC pools in proportions of 350, 350, 200, and 100, respectively. Once governance is active, AZKA dLP holders can vote weekly on the exact distribution. The rewards are allocated to LPs and Murabaha takers based on each pool's utilisation. For instance, if the USDT pool is allocated 35% of the 1000 vAZKA for Murabaha, it receives 350 vAZKA. With 70% utilization, 245 vAZKA goes to LPs and 105 vAZKA to Murabaha takers. This system ensures a balance between liquidity supply for Murabaha and demand. Low utilization, indicating excess liquidity, leads to higher vAZKA rewards for Murabaha takers, encouraging more Murabaha transactions and increased pool utilization. Conversely, high utilization signals a liquidity shortage, increasing rewards for LPs to encourage more deposits.

The 'PerSec' reward for the 2 agents (LP's/Murabaha Takers) participating on a specific pool is given by:

$$\small \text{LP Reward PerSec} = eAZKA \times \text{Distribution Ratio} \times \text{Utilisation ratio}$$

$$\small \text{Murabaha Taker Reward PerSec} = eAZKA \times \text{Distribution Ratio} \times \text{Idle ratio}$$