DLPRewardDeployer

This smart contract implements the DLP reward distribution mechanism outlined in VRC-14, which fundamentally changes how DLP incentives are deployed in the Vana ecosystem. Rather than sending VANA rewards directly to DLP treasuries, this contract executes the new liquidity-based incentive model where all VANA rewards are used to purchase DLP tokens and add them as liquidity to DEX pools. The contract operates through a sophisticated tranche-based system that divides each DLP's quarterly reward allocation into 90 daily tranches (one for each day of the 3-month epoch), with distribution triggered by an off-chain microservice that randomly determines the exact timing each day to prevent predictable market manipulation.

The core functionality revolves around the systematic conversion of VANA rewards into DLP token liquidity positions through this daily distribution schedule. When the off-chain oracle triggers a tranche distribution at a random time each day, the contract pulls the appropriate portion of VANA from the treasury and uses the integrated DLPRewardSwap mechanism to purchase the corresponding DLP token from the market. A configurable percentage of each daily reward tranche is converted to the DLP's native token, while the remainder stays as VANA, and both amounts are then added as liquidity to the DEX pool. This randomized timing approach ensures that no trader can predictably front-run or back-run the reward distributions.

The 90-tranche distribution system prevents market manipulation while creating sustained and unpredictable liquidity growth over the entire epoch period. Instead of deploying all rewards at once or at predictable intervals, the random timing controlled by the off-chain microservice makes it impossible for market participants to game the system by anticipating when buying pressure will occur. Each tranche represents 1/90th of the total reward allocation for that DLP, and the contract tracks the cumulative distributed amount to ensure no DLP receives more than their earned allocation. The system also includes slippage protection and monitoring mechanisms to ensure healthy market conditions during each daily reward deployment.

This implementation directly supports VRC-14's vision of creating first-class data assets with sufficient market depth for actual usage while maintaining market integrity. By automatically converting performance-based VANA rewards into daily liquidity injections at unpredictable times, the contract ensures that successful DLPs benefit from consistent market support without creating exploitable patterns. The off-chain microservice acts as a randomization oracle, calling the contract's distribution function once per day but at varying times to maintain the element of unpredictability essential for preventing manipulation.

The contract maintains detailed records of each daily distribution event, including swap details, timing information, and resulting token amounts, providing full transparency into how the new incentive model translates DLP performance into tangible market improvements for their data tokens. This approach creates a natural market-making mechanism where the protocol itself becomes a consistent but unpredictable participant in DLP token markets, supporting price stability and liquidity depth throughout each epoch.

For more details on the economic rationale and complete specification of this reward system transformation, see the full VRC-14 proposal at: https://github.com/vana-com/VRCs/blob/main/VRCs/vrc-14.md

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Contract Address

Moksha: 0xEFD0F9Ba9De70586b7c4189971cF754adC923B04

Vana Mainnet: 0xEFD0F9Ba9De70586b7c4189971cF754adC923B04