Tokens are distributed using a factor-based model, where depositor engagement and contributions within individual FeederPools determine the allocation of tokens.
The token reward system operates on a slightly different model. Each FeederPool independently sets the rate at which tokens are earned for the entire FeederPool, and subsequently, these tokens are distributed among the participants based on the about of funds they deposited into that FeederPool. Our token distribution system uses a factor based model, which involves comparing the FeederPool’s Reward Factor, to a depositor’s RewardFactor, to establish how many tokens are entitled.
FeederPool Token Reward


= total amount of principal deposited in FeederPool i at transaction t.
= TokensPerSecond in FeederPool i at transaction t.
= RewardFactor for FeederPool i at transaction t.
= DepositorRewardFactor for depositor a, in FeederPool i, at transaction t.