Reward Points

The Aegis Points system is a quantitative framework designed to measure and reward user participation in the protocol's automated yield products. It balances capital contribution with community fairness to ensure rewards are distributed equitably among genuine users.

1. Design Philosophy

The mechanism is built upon three core pillars:

• Fairness: Rewards are proportional to the capital employed. A larger contribution to the ecosystem generates higher baseline rewards.

• Inclusiveness: The model utilizes diminishing returns to ensure that smaller users still achieve meaningful growth, preventing capital monopolies from capturing all incentives.

• Equity (Sybil Resistance): Sophisticated algorithms analyze on-chain behavior (Nonce, Portfolio Value) to penalize industrial-scale "farming" addresses while rewarding active, genuine users.

2. Calculation Logic

The growth of a user's points (p) over time (t) is governed by a differential equation defining the instantaneous speed:

$$\frac{dp}{dt} = f(x) + v(p, x)$$

Where x is the effective capital in the user's Smart Address.

2.1 Capital Incentive Function f(x)

This component defines the baseline growth derived from the deposited capital.

$$f(x) = M \left(\frac{x}{x + K}\right)^{n}$$

• M (Max Speed): The theoretical maximum growth rate.

• K (Saturation): A constant defining the curve's saturation point.

• n (Dynamic Exponent): This is the critical anti-Sybil parameter.

2.2 Auxiliary Speed Adjustment v(p, x)

This function modulates growth based on the user's current monthly point total (p) relative to a target equilibrium (P_0).

• Self-Balancing: If a user has low points but valid capital, this function provides a boost (positive acceleration).

• Decay: If a user withdraws capital (x drops) but has high accumulated points, this function turns negative, causing a controlled, slow decay of the "unbacked" points to restore fairness.

3. Sybil Resistance: The n Parameter

The exponent n in the capital function is not static. It is dynamically calculated based on the credibility of the User Address:

$$n(nonce, pv)$$

• Nonce (Activity): A higher transaction count on the User Address lowers the n value, increasing efficiency. Low-nonce (inactive) addresses face a higher penalty.

• Portfolio Value (PV): For newer addresses (e.g., fresh Smart Wallets) with low nonces, the system checks the total asset value held by the User Address. Significant holdings validate the user as a genuine participant, overriding the nonce penalty.

This ensures that while capital (x) drives growth, only genuine, credible on-chain identities can maximize the efficiency of that growth.

4. Key Takeaways

• No Token: Currently, Aegis Points are a measurement system. There is no token issuance at this stage.

• Hourly Updates: Points are computed and updated hourly.

• Persistence: While monthly counters reset for the adjustment calculation, the Lifetime Total Points are permanent and never expire.