Incentives

Abstract

Incentives module provides general interface to give yield to stakers.

The yield to be given to stakers are stored in gauge and it is distributed on epoch basis to the stakers who meet specific conditions.

Anyone can create gauge and add rewards to the gauge, there is no way to take it out other than distribution.

There are two kinds of gauges, perpetual and non-perpetual ones.

• Non perpetual ones get removed from active queue after the the distribution period finish but perpetual ones persist.
• For non perpetual ones, they distribute the tokens equally per epoch during the gauge is in the active period.
• For perpetual ones, it distribute all the tokens at a single time and somewhere else put the tokens regularly to distribute the tokens, it's mainly used to distribute minted OSMO tokens to LP token stakers.

Contents

1. Concept
2. State
3. Messages
4. Events
5. Hooks
6. Params
7. Transactions
8. Queries

Concepts

The purpose of incentives module is to provide incentives to the users who lock specific token for specific period of time.

Locked tokens can be of any denomination, including LP tokens (gamm/pool/x), IBC tokens (tokens sent through IBC such as ibc/27394FB092D2ECCD56123C74F36E4C1F926001CEADA9CA97EA622B25F41E5EB2), and native tokens (such as ATOM or LUNA).

The incentive amount is entered by the gauge creator. Rewards for a given pool of locked up tokens are pooled into a gauge until the disbursement time. At the disbursement time, they are distributed pro-rata (proportionally) to members of the pool.

Anyone can create a gauge and add rewards to the gauge. There is no way to withdraw gauge rewards other than distribution. Governance proposals can be raised to match the external incentive tokens with equivalent Osmo incentives (see for example: proposal 47).

There are two kinds of gauges: perpetual and non-perpetual:

• Non-perpetual gauges distribute their tokens equally per epoch while the gauge is in the active period. These gauges get removed from the active queue after the distribution period finishes

• Perpetual gauges distribute all their tokens at a single time and only distribute their tokens again once the gauge is refilled (this is mainly used to distribute minted OSMO tokens to LP token stakers). Perpetual gauges persist and will re-disburse tokens when refilled (there is no "active" period)

State

Incentives management

All the incentives that are going to be provided are locked into IncentivePool until released to the appropriate recipients after a specific period of time.

Gauge

Rewards to be distributed are organized by Gauge. The Gauge describes how users can get reward, stores the amount of coins in the gauge, the cadence at which rewards are to be distributed, and the number of epochs to distribute the reward over.

enum LockQueryType {
  option (gogoproto.goproto_enum_prefix) = false;

  ByDuration = 0; // locks which has more than specific duration
  ByTime = 1; // locks which are started before specific time
}

message QueryCondition {
  LockQueryType lock_query_type = 1; // type of lock, ByLockDuration | ByLockTime
  string denom = 2; // lock denom
  google.protobuf.Duration duration = 3; // condition for lock duration, only valid if positive
  google.protobuf.Timestamp timestamp = 4; // condition for lock start time, not valid if unset value
}

message Gauge {
  uint64 id = 1; // unique ID of a Gauge
  QueryCondition distribute_to = 2; // distribute condition of a lock which meet one of these conditions
  repeated cosmos.base.v1beta1.Coin coins = 3; // can distribute multiple coins
  google.protobuf.Timestamp start_time = 4; // condition for lock start time, not valid if unset value
  uint64 num_epochs_paid_over = 5; // number of epochs distribution will be done
}

Gauge queues

Upcoming queue

To start release Gauges at a specific time, we schedule distribution start time with time key queue.

Active queue

Active queue has all the Gauges that are distributing and after distribution period finish, it's removed from the queue.

Active by Denom queue

To speed up the distribution process, module introduces the active Gauges by denom.

Finished queue

Finished queue saves the Gauges that has finished distribution to keep in track.

Module state

The state of the module is expressed by params, lockable_durations and gauges.

// GenesisState defines the incentives module's genesis state.
message GenesisState {
  // params defines all the parameters of the module
  Params params = 1 [ (gogoproto.nullable) = false ];
  repeated Gauge gauges = 2 [ (gogoproto.nullable) = false ];
  repeated google.protobuf.Duration lockable_durations = 3 [
    (gogoproto.nullable) = false,
    (gogoproto.stdduration) = true,
    (gogoproto.moretags) = "yaml:\"lockable_durations\""
  ];
}

Messages

Create Gauge

MsgCreateGauge can be submitted by any account to create a Gauge.

type MsgCreateGauge struct {
 Owner             sdk.AccAddress
  DistributeTo      QueryCondition
  Rewards           sdk.Coins
  StartTime         time.Time // start time to start distribution
  NumEpochsPaidOver uint64 // number of epochs distribution will be done
}

State modifications:

• Validate Owner has enough tokens for rewards
• Generate new Gauge record
• Save the record inside the keeper's time basis unlock queue
• Transfer the tokens from the Owner to incentives ModuleAccount.

Adding balance to Gauge

MsgAddToGauge can be submitted by any account to add more incentives to a Gauge.

type MsgAddToGauge struct {
 GaugeID uint64
  Rewards sdk.Coins
}

State modifications:

• Validate Owner has enough tokens for rewards
• Check if Gauge with specified msg.GaugeID is available
• Modify the Gauge record by adding msg.Rewards
• Transfer the tokens from the Owner to incentives ModuleAccount.

Transactions

create-gauge

Create a gauge to distribute rewards to users

osmosisd tx incentives create-gauge [lockup_denom] [reward] [flags]

Example 1

I want to make incentives for LP tokens of pool 3, namely gamm/pool/3 that have been locked up for at least 14 days. [this is currently the only valid bonding duration] I want to reward 100 AKT to this pool over 2 days (2 epochs). (50 rewarded on each day) I want the rewards to start dispersing on 21 December 2021 (1640081402 UNIX time)

osmosisd tx incentives create-gauge gamm/pool/3 10000ibc/1480B8FD20AD5FCAE81EA87584D269547DD4D436843C1D20F15E00EB64743EF4 \
--duration 336h  --start-time 1640081402 --epochs 2 --from WALLET_NAME --chain-id osmosis-1

Example 2

I want to make incentives for ATOM (ibc/27394FB092D2ECCD56123C74F36E4C1F926001CEADA9CA97EA622B25F41E5EB2) that have been locked up for at least 2 weeks (336h). [this is currently the only valid bonding duration] I want to reward 1000 JUNO (ibc/46B44899322F3CD854D2D46DEEF881958467CDD4B3B10086DA49296BBED94BED) to ATOM holders perpetually (perpetually meaning I must add more tokens to this gauge myself every epoch). I want the reward to start dispersing immediately.

osmosisd tx incentives create-gauge ibc/27394FB092D2ECCD56123C74F36E4C1F926001CEADA9CA97EA622B25F41E5EB2 \
1000000000ibc/46B44899322F3CD854D2D46DEEF881958467CDD4B3B10086DA49296BBED94BED --perpetual --duration 336h \
--from WALLET_NAME --chain-id osmosis-1

add-to-gauge

Add coins to a gauge previously created to distribute more rewards to users

osmosisd tx incentives add-to-gauge [gauge_id] [rewards] [flags]

Example

I want to refill the gauge with 500 JUNO to a previously created gauge (gauge ID 1914) after the distribution.

osmosisd tx incentives add-to-gauge 1914 500000000ibc/46B44899322F3CD854D2D46DEEF881958467CDD4B3B10086DA49296BBED94BED \
--from WALLET_NAME --chain-id osmosis-1

Events

The incentives module emits the following events:

Handlers

MsgCreateGauge

Type	Attribute Key	Attribute Value
create_gauge	gauge_id	{gaugeID}
create_gauge	distribute_to	{owner}
create_gauge	rewards	{rewards}
create_gauge	start_time	{startTime}
create_gauge	num_epochs_paid_over	{numEpochsPaidOver}
message	action	create_gauge
message	sender	{owner}
transfer	recipient	{moduleAccount}
transfer	sender	{owner}
transfer	amount	{amount}

MsgAddToGauge

Type	Attribute Key	Attribute Value
add_to_gauge	gauge_id	{gaugeID}
create_gauge	rewards	{rewards}
message	action	create_gauge
message	sender	{owner}
transfer	recipient	{moduleAccount}
transfer	sender	{owner}
transfer	amount	{amount}

EndBlockers

Incentives distribution

Type	Attribute Key	Attribute Value
transfer[]	recipient	{receiver}
transfer[]	sender	{moduleAccount}
transfer[]	amount	{distrAmount}

Hooks

In this section we describe the "hooks" that incentives module provide for other modules.

If there's no usecase for this, we could ignore this.

 AfterCreateGauge(ctx sdk.Context, gaugeId uint64)
 AfterAddToGauge(ctx sdk.Context, gaugeId uint64)
 AfterStartDistribution(ctx sdk.Context, gaugeId uint64)
 AfterFinishDistribution(ctx sdk.Context, gaugeId uint64)
 AfterDistribute(ctx sdk.Context, gaugeId uint64)

Parameters

The incentives module contains the following parameters:

Key	Type	Example
DistrEpochIdentifier	string	"weekly"

Note: DistrEpochIdentifier is a epoch identifier, and module distribute rewards at the end of epochs. As epochs module is handling multiple epochs, the identifier is required to check if distribution should be done at AfterEpochEnd hook

Queries

In this section we describe the queries required on grpc server.

// Query defines the gRPC querier service.
service Query {
  // returns coins that is going to be distributed
  rpc ModuleToDistributeCoins(ModuleToDistributeCoinsRequest) returns (ModuleToDistributeCoinsResponse) {}
  // returns Gauge by id
  rpc GaugeByID(GaugeByIDRequest) returns (GaugeByIDResponse) {}
  // returns gauges both upcoming and active
  rpc Gauges(GaugesRequest) returns (GaugesResponse) {}
  // returns active gauges
  rpc ActiveGauges(ActiveGaugesRequest) returns (ActiveGaugesResponse) {}
  // returns scheduled gauges
  rpc UpcomingGauges(UpcomingGaugesRequest) returns (UpcomingGaugesResponse) {}
  // RewardsEst returns an estimate of the rewards at a future specific time.
  // The querier either provides an address or a set of locks
  // for which they want to find the associated rewards.
  rpc RewardsEst(RewardsEstRequest) returns (RewardsEstResponse) {}
  // returns lockable durations that are valid to give incentives
  rpc LockableDurations(QueryLockableDurationsRequest) returns (QueryLockableDurationsResponse) {}
}

active-gauges

Query active gauges

osmosisd query incentives active-gauges [flags]

Example

osmosisd query incentives active-gauges

An example output

- coins: []
  distribute_to:
    denom: gamm/pool/99
    duration: 604800s
    lock_query_type: ByDuration
    timestamp: "0001-01-01T00:00:00Z"
  distributed_coins: []
  filled_epochs: "0"
  id: "297"
  is_perpetual: true
  num_epochs_paid_over: "1"
  start_time: "2021-07-03T12:27:09.323840990Z"
- coins: []
  distribute_to:
    denom: gamm/pool/99
    duration: 1209600s
    lock_query_type: ByDuration
    timestamp: "0001-01-01T00:00:00Z"
  distributed_coins: []
  filled_epochs: "0"
  id: "298"
  is_perpetual: true
  num_epochs_paid_over: "1"
  start_time: "2021-07-03T12:27:09.323840990Z"
pagination:
  next_key: BwEAAAAAAAAAHTIwMjEtMDctMDNUMTI6Mjc6MDkuMzIzODQwOTkw
  total: "0"
...

active-gauges-per-denom

Query active gauges per denom

osmosisd query incentives active-gauges-per-denom [denom] [flags]

Example

Query all active gauges distributing incentives to holders of gamm/pool/341

osmosisd query incentives active-gauges-per-denom gamm/pool/341

An example output:

- coins: []
  distribute_to:
    denom: gamm/pool/341
    duration: 604800s
    lock_query_type: ByDuration
    timestamp: "0001-01-01T00:00:00Z"
  distributed_coins: []
  filled_epochs: "0"
  id: "1033"
  is_perpetual: true
  num_epochs_paid_over: "1"
  start_time: "2021-09-06T22:42:52.139465318Z"
- coins: []
  distribute_to:
    denom: gamm/pool/341
    duration: 1209600s
    lock_query_type: ByDuration
    timestamp: "0001-01-01T00:00:00Z"
  distributed_coins: []
  filled_epochs: "0"
  id: "1034"
  is_perpetual: true
  num_epochs_paid_over: "1"
  start_time: "2021-09-06T22:42:52.139465318Z"
pagination:
  next_key: BwEAAAAAAAAAHTIwMjEtMDctMDNUMTI6Mjc6MDkuMzIzODQwOTkw
  total: "0"
...

distributed-coins

Query coins distributed so far

osmosisd query incentives distributed-coins [flags]

Example

osmosisd query incentives distributed-coins

An example output:

coins:
- amount: "27632051924"
  denom: ibc/0954E1C28EB7AF5B72D24F3BC2B47BBB2FDF91BDDFD57B74B99E133AED40972A
- amount: "3975960654"
  denom: ibc/0EF15DF2F02480ADE0BB6E85D9EBB5DAEA2836D3860E9F97F9AADE4F57A31AA0
- amount: "125999980901"
  denom: ibc/1480B8FD20AD5FCAE81EA87584D269547DD4D436843C1D20F15E00EB64743EF4
- amount: "434999992789"
  denom: ibc/1DC495FCEFDA068A3820F903EDBD78B942FBD204D7E93D3BA2B432E9669D1A59
- amount: "3001296"
  denom: ibc/27394FB092D2ECCD56123C74F36E4C1F926001CEADA9CA97EA622B25F41E5EB2
- amount: "1493887986685"
  denom: ibc/3BCCC93AD5DF58D11A6F8A05FA8BC801CBA0BA61A981F57E91B8B598BF8061CB
- amount: "372218215714"
  denom: ibc/46B44899322F3CD854D2D46DEEF881958467CDD4B3B10086DA49296BBED94BED
- amount: "1049999973206"
  denom: ibc/4E5444C35610CC76FC94E7F7886B93121175C28262DDFDDE6F84E82BF2425452
- amount: "11666666665116"
  denom: ibc/7A08C6F11EF0F59EB841B9F788A87EC9F2361C7D9703157EC13D940DC53031FA
- amount: "13199999715662"
  denom: ibc/9712DBB13B9631EDFA9BF61B55F1B2D290B2ADB67E3A4EB3A875F3B6081B3B84
- amount: "1177777428443"
  denom: ibc/D805F1DA50D31B96E4282C1D4181EDDFB1A44A598BFF5666F4B43E4B8BEA95A5
- amount: "466666567747"
  denom: ibc/EA3E1640F9B1532AB129A571203A0B9F789A7F14BB66E350DCBFA18E1A1931F0
- amount: "79999999178"
  denom: ibc/F3FF7A84A73B62921538642F9797C423D2B4C4ACB3C7FCFFCE7F12AA69909C4B
- amount: "65873607694598"
  denom: uosmo

gauge-by-id

Query gauge by id

osmosisd query incentives gauge-by-id [id] [flags]

Example

Query the incentive distribution for gauge ID 1:

osmosisd query incentives gauge-by-id 1

gauge:
  coins:
  - amount: "16654747773959"
    denom: uosmo
  distribute_to:
    denom: gamm/pool/1
    duration: 86400s
    lock_query_type: ByDuration
    timestamp: "0001-01-01T00:00:00Z"
  distributed_coins:
  - amount: "16589795315655"
    denom: uosmo
  filled_epochs: "182"
  id: "1"
  is_perpetual: true
  num_epochs_paid_over: "1"
  start_time: "2021-06-19T04:30:19.082462364Z"

gauges

Query available gauges

osmosisd query incentives gauges [flags]

Example

Query ALL gauges (by default the limit is 100, so here I will define a much larger number to output all gauges)

osmosisd query incentives gauges --limit 2000

An example output:

- coins:
  - amount: "1924196414964"
    denom: uosmo
  distribute_to:
    denom: gamm/pool/348
    duration: 604800s
    lock_query_type: ByDuration
    timestamp: "0001-01-01T00:00:00Z"
  distributed_coins: []
  filled_epochs: "0"
  id: "8"
  is_perpetual: true
  num_epochs_paid_over: "1"
  start_time: "2021-10-04T13:59:02.142175968Z"
- coins:
  - amount: "641398804181"
    denom: uosmo
  distribute_to:
    denom: gamm/pool/348
    duration: 1209600s
    lock_query_type: ByDuration
    timestamp: "0001-01-01T00:00:00Z"
  distributed_coins: []
  filled_epochs: "0"
  id: "9"
  is_perpetual: true
  num_epochs_paid_over: "1"
  start_time: "2021-10-04T13:59:02.142175968Z"
pagination:
  next_key: null
  total: "0"
...

rewards-estimation

Query rewards estimation

// Error: strconv.ParseUint: parsing "": invalid syntax

to-distribute-coins

Query coins that is going to be distributed

osmosisd query incentives to-distribute-coins [flags]

Example

osmosisd query incentives to-distribute-coins

An example output:

coins:
- amount: "20000000"
  denom: gamm/pool/87
- amount: "90791948076"
  denom: ibc/0954E1C28EB7AF5B72D24F3BC2B47BBB2FDF91BDDFD57B74B99E133AED40972A
- amount: "10000"
  denom: ibc/1480B8FD20AD5FCAE81EA87584D269547DD4D436843C1D20F15E00EB64743EF4
- amount: "1000"
  denom: ibc/27394FB092D2ECCD56123C74F36E4C1F926001CEADA9CA97EA622B25F41E5EB2
- amount: "10728832013315"
  denom: ibc/3BCCC93AD5DF58D11A6F8A05FA8BC801CBA0BA61A981F57E91B8B598BF8061CB
- amount: "627782783496"
  denom: ibc/46B44899322F3CD854D2D46DEEF881958467CDD4B3B10086DA49296BBED94BED
- amount: "450000026794"
  denom: ibc/4E5444C35610CC76FC94E7F7886B93121175C28262DDFDDE6F84E82BF2425452
- amount: "38333333334884"
  denom: ibc/7A08C6F11EF0F59EB841B9F788A87EC9F2361C7D9703157EC13D940DC53031FA
- amount: "46800000284338"
  denom: ibc/9712DBB13B9631EDFA9BF61B55F1B2D290B2ADB67E3A4EB3A875F3B6081B3B84
- amount: "2822222571557"
  denom: ibc/D805F1DA50D31B96E4282C1D4181EDDFB1A44A598BFF5666F4B43E4B8BEA95A5
- amount: "2533333432253"
  denom: ibc/EA3E1640F9B1532AB129A571203A0B9F789A7F14BB66E350DCBFA18E1A1931F0
- amount: "366164843847"
  denom: uosmo

upcoming-gauges

Query scheduled gauges (gauges whose start_time has not yet occurred)

osmosisd query incentives upcoming-gauges [flags]

Example

osmosisd query incentives upcoming-gauges

Using this command, we will see the gauge we created earlier, among all other upcoming gauges:

- coins:
  - amount: "10000"
    denom: ibc/1480B8FD20AD5FCAE81EA87584D269547DD4D436843C1D20F15E00EB64743EF4
  distribute_to:
    denom: gamm/pool/3
    duration: 86400s
    lock_query_type: ByDuration
    timestamp: "1970-01-01T00:00:00Z"
  distributed_coins: []
  filled_epochs: "0"
  id: "1914"
  is_perpetual: false
  num_epochs_paid_over: "2"
  start_time: "2021-12-21T10:10:02Z"
...