Rewards for coverage providers

Summary

  • Yield is distributed daily.
  • Yield can consist of BMI and USDT.
  • Yield is compounded.
  • USDT rewards come as an increase in saturation (increase in the bmixCover token value).
  • USDT rewards can be claimed by exiting the position (exchanging the bmixCover tokens for USDT)
  • BMI rewards can be re-staked or withdrawn instantly with a 20% slashing.
  • 80% of each Premium goes to the coverage providers, while 20% goes to the Reinsurance Pool.

What constitutes an APY

APY is displayed for each pool on the platform. The APY is the annualized sum of the following two assets:
  • USDT stablecoin (from Premiums)
  • Bridge Mutual tokens (BMI, from the Reward Pool)
Both the USDT stablecoin rewards and the Bridge Mutual tokens (BMI) are determined based on the perceived risk of the particular Coverage Pool. The pool's utilization ratio determines the perceived risk.
Shield Mining reward tokens are calculated separately

How can I withdraw my rewards?

To withdraw your earned rewards, you can choose either of the following:

How do I earn yield in BMI?

Through staking the bmixCover tokens received after you have provided coverage in the bmiCover Staking Contract.
Only whitelisted projects can benefit from staking bmixCover to avoid the Protocol's economic exploits.

How do I earn yield in Project X's token?

This is available only via Shield Mining (V2) and only for certain pools. When you provide coverage, there will be an indicator if the specific pool offers Shield Mining rewards.

When can the USDT yield be claimed?

When the coverage provider exits their position (exchanges their bmixCover for USDT).

Is the USDT yield compounded?

Yes! The Coverage Provider Yield from the Premium paid in USDT is added to the pool every block (or epoch), increasing the balance of USDT in the Project X Coverage Pool. The yield is compounded, which increases the depth of the Project X Coverage Pool.
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Summary
What constitutes an APY
How can I withdraw my rewards?
How do I earn yield in BMI?
How do I earn yield in Project X's token?
When can the USDT yield be claimed?
Is the USDT yield compounded?