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The protocol allows for vaults to be connected to reward distributors by the pool’s owner using the rewards manager. This allows rewards (typically tokens) to be provided across liquidity positions participating in a pool’s vault (instantaneously or over time) pro-rata based on their amount of shares in the corresponding vault.

Rewards Distributor

Reward distributors must conform to the IRewardDistributor interface. This consists of:

  • function payout(uint128 accountId, uint128 poolId, address collateralType, address sender, uint amount) external returns (bool); - A function which should transfer amount of rewards to the sender address.

For security reasons, the payout function should revert unless msg.sender is equal to Synthetix’s Core System address.

Rewards Manager

A pool owner can then connect a rewards distributor to a vault with the registerRewardsDistributor function. Note that due to gas considerations, no more than 10 rewards distributors may be connected to a given vault at time. To remove a rewards distributor, the pool owner can call removeRewardsDistributor function.

A registered rewards distributor can call the distributeRewards function. The poolId and collateralType parameters identify the relevant vault. amount indicates the total amount of tokens to be distributed starting at the start timestamp over duration seconds. Note that duration may be set to 0, such that the rewards are distributed instantaneously based on the pro-rata distribution at start. A rewards distributor can call the distributeRewards function multiple times, adding to the rewards already distributed to those participating in the vault.

Anyone can call the getAvailableRewards function to see what an account ID can claim from a distributor registered to a specified vault, accounting for amounts previously claimed. Then, an address that owns (or has relevant permissions on) that account can call the claimRewards function. This, in turn, calls the payout() function on the rewards distributor with the appropriate amount.