Ajna Token Rewards

Learn more about Summer.fi x Ajna token rewards

Users of Summer.fi Smart Defi Account that have Ajna positions opened will receive token rewards automatically each week.

The rewards are set by pool and apply to both lenders and borrowers. For lenders, the rewards only apply to deposits in the active liquidity range and above. This means that available liquidity and unutilized liquidity will accumulate no rewards. The rewards earned are proportional to the share of the deposits in the active range. This is continuously updated, so only active lenders receive deposit rewards. You can read more in the lending price guide to understand the ranges. For example:

  1. The weekly token rewards are 1000 Ajna tokens.

  2. The pool has 30,000 tokens deposited from lenders

  3. 5,000 are in the unutilized liquidity range, 15,000 in the available liquidity range and 10,000 in the active liquidity range and above.

  4. Only 10,000 are eligible to earn token rewards.

  5. If, during the week, 2,000 more tokens move to the active liquidity range, they will be eligible for rewards proportional to the time they were in the range.

  6. You deposited 1000 tokens that were in the active range for five days. Your share was 10% for 5 days and will earn approximately 714 Ajna tokens.

For borrowers, the rewards are calculated based on the share of tokens they borrow during the week. The process is similar to lenders, but all borrowers are treated equally since they all borrow from the same pool without distinction. Rewards are weighted towards lenders to facilitate liquidity in the selected pools. The rewards accumulate each week and are available to claim weekly. For the first few weeks the rewards only accumulate and users will be able to claim their whole accumulated rewards once the tokens are released.

Rewards are set weekly and are fixed each week, but pools, weights and token amounts might change for the following week if needed to incentivize liquidity in a different pool.

Follow us on Discord, where we announce each change of the token rewards allocation.


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