Escrowed SGT (eSGT)

eSGT, or Escrowed SGT, is a derivative of SGT that functions similarly to a 1-year bond. At all times, eSGT can be staked for yield in equivalence to SGT. Not only is eSGT emitted to incentivize liquidity provision, it is also used as an instant bonus incentive when bonding assets, and as a rebate asset for funding rates in credit accounts. The premise is to reward users for their contributions with a share of the protocol’s revenue, without having a dilutive effect on open market investors. eSTG can be converted into SGT tokens through vesting, by depositing a percentage of the liquidity used to earn the rewards for the duration of the unvest period.