Overview

Digit is the protocol that built atop a new incentive system for rewarding liquidity providers.

An incentive system is one that rewards liquidity providers for depositing their assets into a protocol. Until now, the standard for incentive systems has been the MasterChef smart contract; a mechanism that rewards providers based on the size of their deposited position.

Digit implements a new primitive called Reliquary; a contract designed by the Byte Masons that seeks to become the new standard in DeFi for incentive distribution. The Reliquary contract, and by extension Digit, rewards liquidity providers not only based on the size of their position, but also based on the position’s maturity.

A position’s maturity is defined as the number of seconds elapsed since deposit/entry. When you deposit into Digit, you are issued an NFT that represents your position, called a Relic. Upon deposit/entry, a timestamp is created and added to the Relic, which keeps track of the position’s maturity in perpetuity. As maturity increases, the incentives allocated increases.

Simply put, the longer you hold a position/Relic, the more rewards you receive.

Relics are transferable and sellable on an open market (coming soon), allowing you to sell a position to someone else without the position losing its maturity. In fact, depending on the design of the maturity curve, positions earning high maturity emissions may sell at a premium.