Rewards
Understand how rewards like Emissions, External Rewards, and Rebase work in the Thirdfy ecosystem and who earns them.
Thirdfy offers several ways to earn rewards by participating in the ecosystem. Different activities grant you access to different reward streams. Here's how they work:
1. Emissions (TFY/xTFY Tokens)
These are new TFY tokens created weekly to incentivize participation in the ecosystem.
Current Reward Scope: Automated Pools
Currently, TFY/xTFY Emissions and the gauge voting system are primarily focused on automated liquidity pools managed by our partner, Ichi. For these pools, the protocol calculates your emission rewards based on your share of the pool and how long you provided liquidity during each weekly epoch.
You can also create manual concentrated liquidity (CL) positions and earn trading fees directly from swaps. However, at this time, manual positions do not receive TFY/xTFY emissions, nor can they be used with the automated o33 strategy.
Who Directs Emissions?
xTFY stakers (including the o33 vault) vote weekly to decide which liquidity pools (gauges) receive these emissions.
Who Earns Emissions?
Liquidity Providers (LPs) in the chosen pools earn emissions based on their share and how long they provide liquidity. Voting directs emissions, but only LPs claim them.
2. External Rewards (Permissionless Incentives)
Anyone—protocols, teams, or individuals—can permissionlessly add extra token rewards to incentivize specific actions within Thirdfy. There are two main types:
LP Incentives
External tokens added directly to a liquidity pool (gauge). These rewards are distributed to Liquidity Providers (LPs) in that specific pool, based on their share and time providing liquidity. This encourages users to add liquidity to specific pairs.
Voting Incentives (Bribes)
External tokens offered to encourage votes for a specific liquidity pool. These rewards (bribes) are distributed to xTFY stakers (including the o33 vault) who vote for that pool, proportional to their voting power. This encourages voters to direct TFY/xTFY emissions towards specific pools.
3. Rebase Rewards (from Penalties)
When users exit their xTFY position instantly (instead of vesting over 180 days), they pay a 50% penalty. This penalty is collected and redistributed as TFY rewards to loyal participants.
Direct xTFY Stakers
Earn these rewards directly, proportional to their staked xTFY amount used for voting.
o33 Holders
Benefit indirectly. The o33 vault claims its share of rebase rewards and auto-compounds it, increasing the underlying value (ratio) of o33 tokens over time.
Who Earns What? (Summary)
Here's a quick breakdown:
Liquidity Providers (LPs)
Earn Emissions + potential LP Incentives based on their share in rewarded pools.
Direct xTFY Stakers
Earn Rebase Rewards (from penalties) + potential Voting Incentives (Bribes) if they vote for bribed pools.
o33 Holders
Earn indirectly as the o33 vault auto-compounds Rebase Rewards and Voting Incentives (Bribes) it receives, increasing the o33 token's value.
To maximize your rewards, you might participate in multiple ways (e.g., provide liquidity and stake xTFY to vote).