Liquidity strategy

The peg can only be as stable as the liquidity behind it. A thin DAT/WHYPE pool means small trades move the price a lot, which forces frequent rebases; a deep pool absorbs flow and keeps DAT near $1. This page explains how the protocol bootstraps that depth and why it does so the way it does.

One farm, by design: the LP incentivizer

The live deployment has one reward farm, BrilaDATIncentivizer:

• You provide DAT/WHYPE liquidity on the pool, receive the pool's LP token, and stake the LP token in the incentivizer.

• You earn DAT rewards on a halving emission schedule. After a period ends, the first stake or getReward interaction halves initreward, mints the next tranche, and starts a new period. The rollover is interaction-triggered, not an autonomous timed transaction.

• The farm must remain registered as the token's incentivizer to mint each new tranche. Removing that role makes a rollover revert.

• Because DAT itself rebases, the pool scales reward accounting by the scaling factor at payout, so earned() reports pre-scaling reward units while getReward() transfers scaled DAT fragments.

See Provide and stake LP for the steps.

Why there is no single-sided "stake HYPE, earn DAT" farm

The repository still contains the generic BrilaDATDistributionPool implementation, which can distribute pre-funded DAT rewards for an arbitrary staking token and enforces a minimum block delay before claims. Its deployment address is zero on mainnet: it is not a live farm.

A single-sided HYPE/WHYPE farm was not deployed because it would emit DAT without requiring users to add DAT/WHYPE liquidity. It would therefore add reward sell pressure without directly deepening the peg pool.

The LP farm instead requires DAT/WHYPE LP tokens. Acquiring or zapping into those LP tokens creates two-sided liquidity in the same pool used by the rebaser. Emissions can still become sell pressure when claimed, and LP providers retain price and impermanent-loss risk.

Where the treasury fits

On a positive rebase, rebaseMintPerc diverts part of the damped delta to the treasury path. maxSlippageFactor (90% by default) determines the portion used for a DAT→WHYPE pool swap; the remaining amount is retained as DAT. The swap uses existing treasury DAT first and mints any shortfall. Both the WHYPE proceeds and retained DAT go to the rebase treasury.

Those assets can later be used for liquidity or other treasury actions, but the contracts do not automatically add treasury-owned liquidity. Treasury custody is a trust boundary described in Governance & security.