# IGNIS.Protocol™ Rewards

The SEQ Token generated each Cycle, is accumulated while the cycle progresses, and at the end of the cycle is swapped to IGNIS Token, from the IGNIS.DAMP™. The swapped amount represents the IGNIS.Protocol™ IGNIS reward for the concluded Cycle.&#x20;

## IGNIS rewards are distributed staked directly into the protocol:

1. 75% will be given as Rewards for all the IGNIS.Batch™ contributor for the current cycle.
2. 10% will be given to staked xBunnies, based on Bunny Score, weighted by DEB.
   1. Normal Bunny counts 2 Points, Legendary Bunny 160 Points. All multiplied by DEB.
3. 10% will be given to 4 more lucky Winners, each will be getting 1%/2%/3%/4%.
4. 5% will be redirected to the Chimeric Vesta.VAULT™

### 1) vEGLD Distribution:

The vEGLD accumulated each cycle, is distributed to the following targets.

1. 90% is distributed via staked IGNIS in the IGNIS.Protocol™, weighted by DEB, to the IGNIS stakers.
2. 2% is swapped to OURO, the resulting OURO representing the Secondary OURO source in IGNIS Generation.
3. 8% is converted to vEGLD-IGNIS-LP and is used to increase liquidity in the vEGLD-IGNIS Liquidity Pool. (the exact mechanism is described below)

### Automatic Liquidity Increase within the vEGLD-IGNIS Liquidity Pool.

As depicted above, 8% of all vEGOLD gathered each cycle is reserved for expanding the vEGLD-IGNIS Liquidity Pool. This happens in a special manner.

The protocol knowing the:

1. vEGLD-USDC amounts in the vEGLD-USDC VestaX.Finance™ DEX Pool
2. USDC-OURO amounts in the vEGLD-USDC VestaX.Finance™ DEX Pool
3. vEGLD-IGNIS amounts in the vEGLD-USDC VestaX.Finance™ DEX Pool

Computes the amount of vEGLD that can be swapped to OURO, that can be burned to generate 100x IGNIS, that can be paired with the remaining vEGLD, given th the vEGLD-IGNIS Ratio, and makes these conversions.

**Let's consider the following Example:**

1. vEGLD-IGNIS Liquidity Pool has 1 VEGLD paired with 10 IGNIS.
2. vEGLD-USDC Liquidity Pool 495.346058822496384653 vEGLD paired with 17264.119598 USDC
3. USDC-OURO Liquidity Pool 14110.124599 USDC paired with 2007.087101857211406559 OURO
4. 1000 vEGLD were gathered in the current cycle and 80 vEGLD, are to be used for this task.

The system knowsing this data, and knowing the swapping fees on the VestaX.Finance™DEX, will then swap 1.691070303120611942 vEGLD to 7.830892969687938805 OURO, which will be burned and converted to 100x IGNIS amount, making for 783.089296968793880500 IGNIS. The remaining vEGLD, amounting to 78.308929696879388058 will be used as pair to the artificially generated IGNIS. As such:

1. 78.30892969687938805 will be paired with
2. 783.089296968793880500 IGNIS.
3. leaving a rest of 0.000000000000000008 vEGLD.

This way deep liquidity is generated in an artificial manner (artificial because IGNIS is again generated out of burned OURO), in the vEGLD-IGNIS Liquidity Pool, by burning OURO, scaling with the number of IGNIS.Batches created. Notice the big % of the initial vEGLD that is added in the liquidity pool (97.886%).

### 2) Automatic Vesta Rewards

The automatic Liquidity Increase of the vEGLD-IGNIS Liquidity Pool will create vEGLD-IGNIS-LPs with each cycle. These LPs will be automatically staked in the Elite Mode in the VestaX.Finance™ Dex, and will be kept indefinitely as such, creating deep liquidity for the IGNIS Token.

As such, these LPs will be eligible to generate Vesta Rewards, because the vEGLD-IGNIS Pool is a Tier X Pool. These rewards will be drained each cycle, and minted in the form of VESTA Token. These Vesta amounts will be split 40% 60%, and will be given to 2 extra lucky winners, making for a total of 7 Lucky winners each Cycle (1 Reward Package, 4 IGNIS winners, 2 Vesta winners).

Once enough liquidity exists in the pool, the Vesta rewards will become significant.

### 3) Automatic Snake Token in rewards as Snake Token Variants

The remaining 2% of the 3% of the daily emission reserved for Raffles, will be split into 5 equal parts, given to 3 lucky Winners:

Each winner will be getting 3, 2, 1s part(s) as Snake Token Rewards. The rewards will be given as follows:

1. The 3 Part winner will receive his rewards as Elite-Auryn.
2. The 2 Part winner will receive his rewards as Auryn.
3. The 1 Part winner will receive his rewards as OUROboros.
