Reward methodology

Verified HISS trading fees support xHISS stakers, long-term vault depositors, healthy vault providers, and the HISS Treasury Safe. This page explains, in plain language, how the depositor and provider rewards are decided. It describes the rules, not amounts — realised allocations are published per epoch. The rules are frozen in code (HISS_REWARD_METHOD_V1) so the dashboards can never quietly disagree with the mechanism.

The split

Only verified HISS trading fees are ever split. The split is a fixed 50 / 30 / 10 / 10: 50% to xHISS stakers, 30% to vault depositors, 10% to vault providers, and 10% to the 2-of-3 HISS Treasury Safe (which also absorbs the floor-division dust so the legs sum exactly). The 15% creator vesting premint and 100% of claimed WETH are excluded — WETH goes entirely to the Treasury Safe and is never part of this split.

Depositor rewards (30%)

Depositor rewards are based on time-weighted vault participation. Depositor rewards vest over 30 days.

Your reward tracks eligible share-seconds — the shares you hold multiplied by the seconds you hold them over the epoch. Those are grouped by the vault's provider, passed through a concave anti-dominance curve on aggregated group participation, and capped so no single provider group takes more than 40% of the depositor pool. The result is split linearly across vaults and then across depositors. Excluded and self-dealing wallets contribute zero.

Designed to resist common timing, self-deposit, vault-spam, and snapshot strategies. Grouping by provider means splitting one deposit across many vaults gains nothing. Time-weighting means a last-second, snapshot-timed deposit earns in proportion to seconds held, not to a moment. The concave curve is applied to the whole group, never per wallet, so Sybil-splitting is not amplified.

Provider rewards (10%)

Provider rewards are based on durable external capital, depositor retention, and objective operational quality. Provider rewards vest over 90 days.

Creating a vault does not automatically qualify it for provider rewards. Performance does not affect provider reward eligibility. Eligibility is facts only: registered in the provider registry, created via the canonical factory, payout verified, active, disclosures and receipts current, not paused for provider fault, minimum operating age met, and so on. Performance inputs — PnL, APY, return, rank, volatility — are rejected by the scorer itself and can never affect the outcome.

The eligible provider pool is scored across four components, each a pro-rata sub-pool:

• Equal share — 40%. Split equally among all eligible provider groups — a floor that resists whale dominance.
• External TVL-days — 30%. Durable external capital over the epoch, passed through a concave anti-dominance curve. Excluded and self-dealing wallets contribute zero.
• Retention — 20%. External-capital retention: cohort retention and median external depositor age.
• Operational quality — 10%. Objective operational hygiene only — never performance, PnL, APY, or rank.

A dominance cap of 25% limits any single group; excess rolls over to the next provider epoch (never back to the capped group, never to the treasury).

Vesting

Depositor rewards vest over 30 days and provider rewards over 90 days, both linearly. Depositor vesting is enforced on-chain by the depositor distributor. The 90-day provider vest is a published methodology schedule today; making it binding on-chain is a documented, Safe-gated contract delta that has not shipped yet. Nothing is claimable before its epoch is funded and its challenge window has closed.

The monthly lifecycle

Each state is distinct and never collapsed into a vague "pending":

• Provisional — a weekly checkpoint tally. Not final, not funded, not claimable.
• Final — the month's score is finalized deterministically from source events.
• Challenge — published and open to challenge for 7 days. Still not claimable.
• Funded — after the challenge window, a 2-of-3 Safe action funds the epoch on-chain.
• Vesting — funded rewards vest linearly.
• Claimable — a vested, unclaimed portion is available to claim.
• Claimed / rolled over — fully claimed, or the unclaimed remainder returns (depositor dust to treasury, provider excess to the next epoch).

There are 4–5 weekly checkpoints per monthly epoch. Finalization requires the Safe; a sustained, substantiated challenge forces a deterministic recomputation before any funding.

Revocation

Only unvested provider rewards are ever revocable, only on an objective condition, and only by a 2-of-3 Safe action with a public receipt. Already-vested rewards are untouchable. Poor performance is never a ground.

Current state

The methodology is published and frozen in code. No monthly epoch has been scored, finalized, or funded yet, and the depositor and provider distributors are not deployed. Every dashboard reflects that honestly: planned ≠ funded ≠ claimable. Not a performance claim. Historical fee distributions are not forecasts.