Incentivising Performance

Dexponent’s ranking and incentive system is built to encourage active participation while keeping all stakeholders aligned. Rewards are distributed exclusively in $DXP tokens and are calculated based on the actual yield generated by each Farm. To ensure fairness and transparency, additional safeguards are in place to validate performance and regulate reward distribution. Each Farm accepts only one type of input token, but the output can vary some Farms distribute returns in their native asset, while others provide additional subsidiary rewards based on their specific strategy. Investment allocations within a Farm can either focus on a single Yield Yoda or be diversified across multiple Yield Yodas, based on criteria defined by the Farm Owner. Dexponent’s performance based incentive system ensures that all stakeholders LPs, yield yodas, and verifiers, are aligned toward optimal, risk adjusted yield generation. Rewards are issued exclusively in $DXP tokens and are calculated dynamically based on the actual yield generated by each Farm, with built in checks for fairness and transparency. In each Farm, liquidity providers earn an immediate bonus and accrue additional rewards over time. When early withdrawals occur, any distributed $DXP tokens are returned to the unissued supply, ensuring a balanced and sustainable token economy. Within each Farm, performance is continuously monitored by verifiers who rank yield yoda's on a block-by-block basis. Moreover, verifiers use their on-chain performance data to submit proofs, which in turn trigger token emissions and incentivise effective yield generation. This framework ensures that each stakeholder’s contribution whether it’s a yield yoda optimising strategy performance, a farm owner managing risk, or an LP providing capital is continuously validated and rewarded. As a result, the protocol aligns the interests of all participants, fostering a transparent and high performing ecosystem where only the best strategies endure.

Whether a Farm’s returns are issued in the native asset or supplemented with subsidiary rewards, the dynamic, market driven performance metrics ensure that only the highest performing strategies thrive creating a self regulating ecosystem where every participant benefits from clear, predictable returns .