Buybacks & Distribution

At the end of each Season, EL Points determine how EL from the buyback pool is distributed among users.

4.1 EL Buybacks

The protocol uses a portion of the yield generated by the ELUSD strategy to buy EL on the market.

• Buybacks are executed periodically, based on realized ELUSD strategy revenue.

• The exact buyback rate and timing (e.g., percentage and frequency) are not disclosed.

  • This is intended to reduce the risk of users attempting to game specific buyback moments.

  • The goal is to keep the reward flow fair over time, so that long-term participants can benefit in a more balanced way.

4.2 Seasonal EL Distribution

When a Season ends, the portion of EL designated for rewards is distributed in proportion to EL Points.

• During Season N:

  • Total EL Points across all users: TOTAL_POINTS

  • A given user’s cumulative EL Points: USER_POINTS

  • Total EL purchased via buybacks: Total_EL_Pool

  • Portion of Total_EL_Pool allocated for rewards: Distributed_EL_Pool

• User distribution formula User’s EL reward = Distributed_EL_Pool × (USER_POINTS / TOTAL_POINTS)

• After distribution:

  • All EL Points are reset to 0 and a new Season begins

Only the portion of EL designated as Distributed_EL_Pool is used for Season N rewards. Any remaining EL from Total_EL_Pool may be reserved for long-term ecosystem purposes (e.g., treasury, liquidity support, or potential burn mechanisms).