Lender Incentive Rewards

Index Pool lenders stake “x”RWA tokens for NAOS token reward. The NAOS token reward has a 6 month vesting period, lenders may claim the reward in full after 6 months, or claim at any time before 6 months by forfeiting a portion of the reward. The mechanism is designed to incentivize long-term contributors and their capital commitments.

For example, a lender is scheduled to receive 1,000 NAOS rewards every month. The lender receives the full 6,000 NAOS rewards when claiming after 6 months. If the lender claims the reward after 3 months, only 1,500 (3000*3/6) NAOS reward will be granted.

Junior Pool lenders receive NAOS token rewards automatically and are not subjected to vesting. The NAOS token rewards are distributed at the stated APY when the interest payments are received.

For example, for a $1m junior pool with 10% nominal interest and 5% NAOS reward, $50K NAOS reward will be distributed when the full $100K interest payment is received. When only $50K interest payment is received, only $25K NAOS reward will be distributed.