We’re thrilled to announce that HARBOR emissions will kick off on 10th July. The long-awaited HARBOR emissions are finally here. Users will now be able to earn a portion of HARBOR emissions for minting CMST on HARBOR!
Outlined in the blog below is a complete walkthrough on Harbor emissions and how rewards will be distributed.
HARBOR Protocol is an interchain stablecoin protocol that enables the minting of the Composite ($CMST) stablecoin. Harbor allows users to deposit any whitelisted IBC assets like stATOM, ATOM, OSMO as collateral to mint and borrow CMST.
In order to encourage $CMST adoption, 50% of the total supply will be distributed to users in the form of emissions. Emissions will start at 1% of the total 500M allocated, (i.e. 5M for the first week). For the subsequent week, the remaining 495M (500M — 5M emissions from the previous week) will be used, and 1% of 495M will be emitted, which makes the following week’s emissions 4,950,000 and so on.
The rate of emissions and reward distribution is a function of the amount of $HARBOR tokens that a user has locked up as a percentage of the circulating supply. Regardless of the amount of $HARBOR locked up, the long-term outlook is designed for the emissions to gradually decrease.
$HARBOR token emission is dynamic and is based on the percentage of the total supply locked in veHARBOR. The more significant the proportion of $HARBOR tokens locked in veHARBOR, the less intensive the distribution of emissions to $CMST borrowers. To understand more about HARBOR and veHARBOR read here.
Emissions will occur every week, and users can vote on their desired vaults/pools to direct the emissions towards. The voting period runs for five days, and rewards are distributed within two days of the voting period’s completion. Users can vote on multiple vaults or pools as they see fit. A user’s voting power is recorded by calculating the HARBOR that has been staked before the proposal was raised. Voting on the pools/vaults is essential as users will decide where Harbor emissions will be directed.
To be eligible for rewards, users must have minted $CMST through vaults (not including stablemint) or Farm in $CMST pools on Cswap. Users will also be eligible if they mint CMST from vaults AND/OR LP & Farm in CMST pools during the emission period. Users must make sure that their Farm/ Mint positions are kept open until the rewards for that week are distributed.
There are three types of rewards that users can receive:
Rebase Rewards: These are rewards that go to veHARBOR holders to prevent dilution of their voting power. These rewards also serve as an incentive for getting HARBOR holders to stake their positions for veHARBOR. The duration of locking on the rebase rewards will be the same as the duration of lockup of the HARBOR they were earned on. The total rebase reward earned by a user will be proportionally spread across different locking periods based on the amount of HARBOR locked by user in different durations.
Example: A user who locks 200 HARBOR for 1 month and 100 HARBOR for 4 months is eligible for ⅔ of their rebase rewards locked for 1 month and ⅓ for 4 months.
Emission Rewards: These are rewards paid in $HARBOR and are sent directly to a user’s wallet once the voting period is complete. Any user who has minted $CMST using vaults or provided liquidity in $CMST pools on Cswap is eligible to receive these rewards, even if the user has not voted during that week. A user’s estimated emission reward will be shown on the emission page and is calculated using the following formula:
User’s emission = (LP&Farm in $CMST pool or $CMST minted from vault minted * Voting power % received on that vault/pool * Total emissions for the week) / (Total $CMST minted on a vault or Total Farm liquidity of that pool)
External Incentives: Any protocol may provide incentives on specific vaults/pools to incentivize voting on the vaults/pools to direct maximum emissions on it. These incentives will be displayed on the emission page, and users may vote on these vaults to receive the external incentive, which can be claimed from the reward page.
It’s important to note that users may change their vote any number of times by adjusting the slider and then completing the vote transaction. Rewards will be distributed within two days after the completion of the five day voting period. During the voting period, users can mint more $CMST from the vaults or provide liquidity to the pools. However, their voting power will only be considered until the emission for the current week starts.
In conclusion, HARBOR Protocol’s emissions and rewards system is designed to incentivize users to participate in the platform’s governance and to direct emissions to the vaults and pools that they believe will best serve the community. By doing so, users can earn rewards while also having a say in the future direction of the platform.
A User Guide on Weekly Emissions
Step 1: Go to the Harbor (link) to mint CMST from Vaults (except stablemint vaults) OR go to the Cswap (link) to LP & farm in CMST pools on Cswap.
Step 2: Lock Harbor to gain voting power to direct Harbor emissions (rewards) to the vaults/pools.
Step 3: Go to the Emission Page and cast your vote on your desired vaults/pools. You can vote on multiple pools and vaults, and users also have the flexibility to change their vote any number of times before the voting period ends.
Step 4: Collect rewards from the Rewards page, which will be distributed within 2 days after the voting period ends. Rebase rewards and external incentives can be claimed from the Rewards page, whereas the Harbor emission rewards (i.e., liquid Harbor) will be sent to your wallets directly.
Details of the Emission Tab
- This shows how much time is left for the emissions to end.
- This is approximately the Harbor emission you will receive in your wallet once the emission ends and rewards are distributed. Please note that this number can change during the emission based on user voting and minting of CMST.
- This shows your veHARBOR voting power. Staking more veHARBOR once the emission starts won’t increase your voting power for the current emission week. However, it will increase in the next weekly emission period.
- This is the total Harbor emission for the week.
- This gives a list of all pools/vaults.
- This gives the Total emission (i.e., the Harbor tokens) that will be going to each individual vault/pool.
- This indicates the veHARBOR voting power on each of the vaults and pools.
- If any external incentives are provided on the vault by any protocol to direct emissions, then they will appear here.
- A user’s Farmed/Minted position in $
- Users can select their voting percentage here by using the slider.
- Once step 10 is done, users can vote using this and perform the transaction.