Rewards

Understand how rewards like Emissions, External Rewards, and Rebase work in the Thirdfy ecosystem and who earns them.

Quick Start (TL;DR)

Thirdfy offers several ways to earn rewards by participating in the ecosystem. IMPORTANT: You must stake xTFY to earn any rewards or vote - unstaked xTFY earns nothing. Different activities grant you access to different reward streams:

Here's how rewards work:

1. Emissions (TFY/xTFY Tokens)

These are new TFY tokens created weekly to incentivize participation in the ecosystem.

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 Protocol Revenue & Exit Penalties)

Rebase rewards are weekly distributions to staked xTFY holders, funded by two sources:

Primary Source: Protocol Revenue The community governs how protocol revenue is distributed through our Revenue Governance system. Revenue comes from:

  • AI agent service fees
  • Trading fees from the concentrated liquidity AMM
  • Vault management fees from our Ichi partnership
  • Future cross-chain and DeFi product revenue

Each week, xTFY holders vote to decide what percentage of this revenue becomes rebase rewards (distributed to stakers) versus token burns (deflation).

Secondary Boost: Exit Penalties When users exit xTFY instantly, they pay a 50% penalty. These penalties enhance the rebase rewards, providing additional value to loyal stakers.

Community Control Unlike fixed tokenomics, xTFY holders collectively decide the optimal balance between rewarding stakers (rebases) and creating scarcity (burns) based on market conditions and community preferences.

Direct xTFY Stakers

Earn rebase rewards directly each week, proportional to their staked xTFY balance. Requires staking xTFY to participate in the reward distribution.

o33 Holders

Benefit indirectly. The o33 vault claims its share of protocol revenue rebases, exit penalties, and voting incentives, then auto-compounds everything back into the vault, increasing the o33:xTFY ratio over time.

How Incentives Work

Boost pool rewards by adding incentives that help increase TVL and trading volume for selected pools:

LP Incentives

Added by: Pool operators, protocols, users
Distributed to: Liquidity providers in that specific pool
Purpose: Attract more liquidity to increase TVL and trading volume

Voting Incentives (Bribes)

Added by: Pool operators wanting more emissions
Distributed to: Staked xTFY holders who vote for that pool
Purpose: Attract votes to direct more TFY emissions to their pool

Both types of incentives create a competitive marketplace that benefits the entire ecosystem by increasing activity and rewards.

Who Earns What? (Summary)

Here's a quick breakdown:

Staked xTFY (Base)

Earn Rebase Rewards automatically from protocol revenue (community-governed) + exit penalty bonuses. Foundation for all other rewards.

Staked xTFY + Voting

Earn Rebase Rewards + Voting Incentives (Bribes) for pools you vote for. Most common strategy.

Staked xTFY + LP + Voting

Earn everything: Rebase + Voting Incentives + Emissions + LP Incentives + trading fees. Maximum rewards strategy.

o33 Holders

Earn indirectly as the o33 vault auto-compounds protocol revenue rebases, exit penalties, and voting incentives, increasing the o33:xTFY ratio over time.

To maximize your rewards, you might participate in multiple ways (e.g., provide liquidity and stake xTFY to vote).

Learn More

Gauge Voting

Start with weekly gauge voting to direct TFY emissions to your preferred pools and earn voting incentives.

Revenue Governance

Control how protocol revenue becomes rebase rewards. Vote weekly on proposals that decide what percentage of AI fees, trading fees, and vault revenue gets distributed to stakers vs burned for deflation.


What's Next?

Ready to start earning rewards? Choose your path:

Start Earning Now

Get TFY, convert to xTFY, and begin participating in the ecosystem to earn rewards.

Go Autopilot with o33

Want passive rewards? Mint o33 for automated compounding of protocol revenue rebases, exit penalties, and voting incentives without any active management.

Need Help Understanding?

Check our glossary for clear definitions of all reward-related terms.