$BET emissions

Why $BET exists

$BET is the LP's fee-claim token. Holding it gives you a pro-rata share of the protocol's future revenue. There is no other path to LP exposure: minting $BET is how the protocol bootstraps an LP without any upfront capital, by routing a token reward to the people who put money in (which, in this design, means the people who lose coupons).

How you earn it

$BET mints to your account whenever you lose a coupon (any leg loses). Nothing else mints $BET. The amount minted scales with the size of the LP's gain from your loss: bigger losses mint more $BET.

When the rate is highest

The mint rate isn't fixed. It depends on where the LP is sitting:

• While the LP is below $2M, the rate is a flat 100 $BET per $1 of LP gain.
• Above $2M, the rate decays smoothly as the LP grows. The further the LP gets, the less $BET each new dollar of loss mints.

Early traders earn materially more $BET per dollar lost than late traders. By design: early activity carries the most variance risk and is rewarded the most.

Mint rate is highest while the LP is small or underwater, then decays smoothly as it grows.

For the technical curve and exact formula see Mint curve.

The other side: winning coupons

Losses mint $BET; wins pay out from the LP. When the LP is healthy a win settles immediately, when the LP is low the win lands in a FIFO queue and clears as future losses refill the LP.

For details see The LP and the payout queue.