Flows
Flows distribute protocol-generated value throughout the Polaris ecosystem.
These incentive streams sit one layer above the Fee Router, which first processes pETH-denominated protocol revenue through the bonding curve. Flows then determine where the resulting pETH rewards are sent.
Instead, pAsset flows operate separately. Interest paid by minters of assets such as USDp or GOLDp does not pass through the Fee Router, and is instead distributed through that pAsset market’s own flow logic.
Thus, ecosystem incentives are paid out using assets directly connected to protocol activity, without relying on inflationary POLAR emissions.
Flow Allocation
Flows are allocated to whitelisted contracts according to how much pETH or a specific pAsset they hold.
In general, assets receive flows in proportion to their share of the corresponding asset, with stewardship able to apply additional weighting where appropriate.
Flows can also include a temporary minimum allocation for selected recipients. This allows strategically important integrations or new markets to begin receiving meaningful flows before they have accumulated enough assets for the standard balance-based allocation to become effective.
Since these minimum allocations distribute protocol value before a recipient has earned it through normal usage, they are managed through stewardship and should only be used where the recipient is expected to create value for Polaris.
pETH and pAssets Flows
pETH flows are funded by pETH-denominated protocol activity, including bonding curve swap fees, Reserve Loan fees and pETH-to-POLAR conversions.
When these fees are processed, they pass through the Fee Router: pETH is first burned at the floor price, releasing ETH from the reserve. That ETH is then used to purchase newly minted pETH, which is finally distributed through pETH flows.
Each pAsset market also generates its own independent flow funded by the interest paid by users who mint that specific pAsset, such as USDp or GOLDp.
Unlike pETH flows, pAsset flows do not pass through the Fee Router. Each market routes a protocol-defined minimum allocation to its corresponding Earn Vault. For USDp and GOLDp, a share is also routed to vePOLAR. Future pAsset markets may choose to share revenue with vePOLAR as part of their alignment strategy and their case for receiving pETH flows.
The remaining flow can then be distributed to approved recipients building around that pAsset, including liquidity pools, vaults, structured products and other integrations.
| Flow type | Funded by | Distribution |
|---|---|---|
| pETH flows | Bonding curve swap fees, Reserve Loan fees, pETH→POLAR conversions | Processed by the Fee Router, then distributed as pETH |
| pAsset flows | Interest paid by pAsset minters | Distributed by each pAsset market’s flow logic |
Stewardship Role
Once configured, flows operate automatically through immutable protocol rules.
Stewardship determines:
- Which contracts are eligible to receive flows
- Which address receives them
- Any additional weighting applied to each recipient
- Whether a temporary minimum allocation should be used
Recipients are expected to create value for Polaris in return for flow support. That value may come through liquidity, integrations, revenue sharing or other forms of ecosystem growth.