PoEL Rewards

What are PoEL rewards

PoEL (Proof of Efficient Liquidity) rewards are incentives designed to reward users for providing productive liquidity to the Supra ecosystem.

When a user stakes an asset such as SUPRA, USDC, or ETH, the asset is used to mint an iAsset (e.g., iSUPRA, iUSDC). An iAsset is a wrapped representation of the underlying asset that:

• Continues to remain liquid and composable across Supra DeFi

• Passively earns block rewards in $SUPRA

• Can be reused across multiple DeFi primitives without being locked

Reference: https://supra.com/iassets/

Lending iAssets on SupraLend to Earn Dual Rewards

SupraLend supports lending of iAssets such as iSUPRA and iUSDC. Any iAsset holder can lend these assets on SupraLend markets to earn dual rewards.

What Users Earn

• Base lending APY from SupraLend

• PoEL rewards on top of the base yield

• Ability to use lent iAssets as collateral to borrow other assets

How to Start Earning

1. Go to SupraLend → Markets

2. Select an iAsset and click Lend

3. Rewards start accruing automatically

APY & Rewards Tracking

• ⭐ icon shows APY split between base yield and PoEL rewards

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• Rewards can be viewed and claimed from the Rewards module on the Markets page

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PoEL Rewards Distribution Mechanism

PoEL rewards on SupraLend are distributed through a dedicated rewards contract that manages accrual and claims for lenders.

How It Works

• Rewards are periodically added to the rewards pool (e.g., weekly)

• Emission parameters are configured for each cycle

• Users earn rewards based on supplied liquidity and time in the pool

• Rewards are claimable at any time without interrupting lending

Rewards System – Detailed Overview

The rewards system enables users to earn additional tokens for depositing or lending assets in supported pools. Conceptually, it works like interest accrual, but payouts happen in reward tokens.

How Rewards Are Refilled (Admin Process)

The administrator refills and configures rewards in three simple steps.

1. Set Up the Reward Pool

• Selects the reward token (e.g., $SUPRA)

• Links the reward to a specific lending pool (e.g., iUSDC market)

2. Add Reward Tokens

• Deposits reward tokens into the rewards contract

• Defines the distribution period (e.g., 7 days, 30 days)

• Sets the emission rate (e.g., X tokens per day)

Core Function: update_rewards()

This function:

• Transfers reward tokens from the admin to the rewards pool

• Sets start time, end time, and emission rate for distribution

How Users Earn and Claim Rewards

Automatic Accrual

Users do not need to perform any additional actions to earn rewards.

Rewards are calculated automatically based on:

• Amount of assets supplied

• Duration of supply

• User’s proportional share of total pool liquidity

Claiming Rewards

Users can claim rewards in two steps:

1. View Rewards Balance

   • Displays total claimable rewards

   • Internal read: get_user_rewards()

2. Claim Rewards

   • User clicks Claim Rewards in the app

   • Reward tokens are transferred directly to the user’s wallet

   • Accrued balance resets to zero

   • Reward accrual continues seamlessly

Core Function: claim_user_rewards()

This function:

• Calculates total rewards earned up to the claim timestamp

• Transfers rewards to the user

• Resets internal accounting for future accrual

Summary

• PoEL rewards incentivize productive liquidity via iAssets

• Lending iAssets on SupraLend enables dual rewards: lending APY + PoEL

• Rewards are transparently distributed through a dedicated rewards contract

• Users can track and claim rewards seamlessly without interrupting yield