The TopCut Vault receives a volume share of 5% from all Markets and powers three incentive systems:

• Loyalty Rewards
• Affiliate Rewards
• PSM Redemption

Connecting a market to the TopCut Vault is fully permissionless. In principle, any protocol can join the affiliate and loyalty reward system.

Loyalty Rewards

function updatePoints(address _trader, uint256 _refID) external payableMarkets call this function whenever users cast a prediction. It updates the Loyalty Points of the trader and Affiliate Points of the referrer. It checks if the user is now the leader in Loyalty Points and replaces the leader if true. If the next distribution time has passed, the weekly loyalty reward is distributed automatically to the current leader in Loyalty Points. Upon distribution, the points of the leader are reset to zero.

Read Affiliate Points

function affiliatePoints(uint256 _refID) public view returns (uint256)This function returns the current Affiliate Points of a given NFT ID.

Quote for redeeming Affiliate Points

function quoteAffiliateReward(uint256 _pointsRedeemed) public view returns (uint256 ethReward)This function returns the amount of ETH when burning a given amount of Affiliate Points.

Claim Affiliate Reward

function claimAffiliateReward(uint256 _refID, uint256 _pointsRedeemed, uint256 _minReceived, uint256 _deadline) externalAffiliates interact with this function to redeem a specific amount of Affiliate Points from their NFT for ETH rewards. The function expects a minimum amount received input (ETH) and deadline timestamp to protect against frontrunning or unexpected results.

Quote for redeeming PSM

function quoteRedeemPSM(uint256 _amountPSM) public view returns (uint256)This function informs about how much ETH will be returned to the user when burning a specific amount of PSM tokens.

Redeem PSM

function redeemPSM(uint256 _amountPSM, uint256 _minReceived, uint256 _deadline) externalUsers call this function to burn PSM for ETH from the Vault. The parameters _minReceived and _deadline protect against frontrunning and unexpected, delayed execution.