Canton Coin Rewards

How protocol participants earn Canton Coin through the app allocation program

Canton Coin (CC) is the native utility token of the Canton Network. Dualis Finance participants earn CC rewards through the Canton Network's app allocation program, which distributes CC to applications and their users based on protocol activity and network contribution. This mechanism provides an additional incentive layer on top of the native DUAL token rewards, aligning Dualis participants with the broader Canton ecosystem.

How It Works

The Canton Network allocates CC to participating applications based on their contribution to network activity. Dualis Finance, as a deployed application on Canton, receives an app allocation of CC that is then distributed to protocol participants. The allocation is determined by several factors:

Transaction volume -- The number and value of transactions generated by Dualis users on the Canton Network contributes to the protocol's share of the overall CC allocation.
Active participants -- The number of unique parties interacting with Dualis contracts on Canton increases the protocol's allocation weight.
TVL contribution -- Assets locked within Dualis lending pools represent economic activity on the Canton Network, which factors into allocation calculations.
Network utility -- The diversity and complexity of DAML contract exercises originating from Dualis operations signal high-value network usage.

Network-Level Program

Canton Coin rewards are distributed by the Canton Network itself, not minted by Dualis. The protocol facilitates the distribution to its users but does not control the total allocation, which is determined by Canton's network-wide reward parameters.

Rewards for Suppliers

Suppliers who deposit assets into Dualis lending pools earn CC rewards proportional to their contribution to protocol TVL. The reward calculation considers both the size and duration of the supply position:

Proportional share -- A supplier's CC reward is calculated as their share of the total pool TVL multiplied by the pool's CC allocation for that epoch.
Time-weighted -- Rewards accumulate on a per-block basis. A supplier who deposits early in an epoch earns more CC than one who deposits late, reflecting the longer duration of their capital commitment.
Multi-pool support -- Suppliers with positions across multiple pools earn CC from each pool independently. There is no cap on the number of pools from which a single address can earn rewards.

Rewards for Borrowers

Borrowers also earn CC rewards, which serve as a partial offset to their interest costs. Borrower rewards incentivize utilization, which is essential for generating supplier yield and protocol revenue. The borrower reward mechanism accounts for:

Borrow balance -- Rewards are proportional to the outstanding borrow balance, encouraging sustained borrowing activity rather than short-term flash positions.
Interest contribution -- Borrowers who generate more interest revenue for the protocol receive a proportionally larger share of CC rewards, aligning incentives between individual borrower activity and protocol health.
Credit tier factor -- Higher-rated borrowers (Diamond, Gold) receive a modest CC reward boost, reflecting their lower default risk and positive contribution to pool solvency.

Net Borrowing Cost

When evaluating borrowing costs on Dualis, consider the net effective rate: the nominal borrow APR minus the value of CC rewards earned. During periods of high CC allocation, the net borrowing cost can be significantly lower than the headline interest rate.

Distribution Mechanics

CC rewards are distributed on an epoch basis. At the end of each epoch, the Canton Network calculates and allocates CC to the Dualis protocol contract. The protocol then distributes rewards to individual participants based on their recorded activity during that epoch.

Key distribution parameters:

Epoch length -- Reward epochs align with the Canton Network's epoch schedule. The current epoch duration is configurable by Canton governance.
Claiming -- Accrued CC rewards can be claimed at any time after the epoch concludes. Unclaimed rewards do not expire and accumulate across epochs until claimed.
Auto-compound option -- Users can opt to automatically re-supply claimed CC rewards into the CC lending pool, compounding their supply position and future CC reward earnings.

Allocation Split

The CC allocation received by Dualis is distributed across participant categories according to the following split:

Suppliers: 50% -- The largest share goes to suppliers, reflecting their role as the foundation of protocol liquidity.
Borrowers: 30% -- Borrowers receive a substantial share to incentivize utilization and offset interest costs.
Liquidators: 10% -- Liquidators earn CC for maintaining protocol health by clearing unhealthy positions.
Protocol reserve: 10% -- A portion of CC is retained by the protocol treasury to fund operational needs and future ecosystem initiatives.

Governance-Configurable

The allocation split between suppliers, borrowers, liquidators, and the protocol reserve is a governance-configurable parameter. It can be adjusted through a PARAMETER_CHANGE proposal to respond to changing market conditions and protocol priorities.

Tracking Your Rewards

The Dualis dashboard displays accrued CC rewards in real time. Users can view their pending rewards per pool, historical claim data, and projected earnings based on current activity levels. The rewards panel integrates with the connected wallet to provide a consolidated view of all CC positions -- including rewards earned through Dualis and CC held independently.