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# IRO Rewards

## What are IRO Rewards?

IRO rewards are Stablecoin (USDC) rewards provided by landlords to incentivise participation in the IRO and making it a successful one. Rewards vary across different IROs at the discretion of the landlord who lists the property.
You could think of the IRO process as a parallel of yield farming. You will be able to farm for Stablecoin rewards by committing Stablecoins to the IRO pool. If the IRO is successful, everyone who committed to the IRO will be able to claim their share of the IRO reward and the Real Estate Tokens (RET).

## How are IRO Rewards calculated?

Stakers receive a daily reward in return for locking up liquidity during the IRO period. Once committed, stakers cannot withdraw their Stablecoins for the entire IRO period.
We will calculate the daily reward split at 00:00:00 UTC. Stakers will be able to claim their reward and RET after a successful IRO.
The daily reward will be calculated using the following formula:
$\sum_{i=x}^{n}\frac{Contribution_{i}}{Total Committed_{i} } * Daily Reward$
Where n = number of IRO days and x = the first-day contribution is added.

## Let's demonstrate with an example

In this example, the building undergoing the IRO has the following attributes:
Fair Value: $100,000 Daily reward:$1,000
Farmer Alice committed $1000 to the IRO pool on Day 1 and is the only person who contributed to the day's pool. For the$1000 staked, she is rewarded 100% of the daily reward.
Alice = $1000/1000 * 100 = 100% Farmer Bob discovered the IRO pool on Day 2 and decided to stake$9000. As a result, he now has 90% of the daily reward while Alice has 10%.
Alice = 10%
Bob = 90%
However, the listing would not be successful without additional stakers to meet the fair value price. Hence, on Day 3, Farmer Carol decides to stake the remaining pool of $90,000 to meet the IRO fair value price. Thus, the daily reward distribution for the remaining seven days will be: Alice = 1% Bob = 9% Carol = 90% % of Daily Reward Distributed The farmers will be able to claim their reward for locking up their liquidity: Alice =$1,170 (4,272% APY)
Bob = $1,530 (621% APY) Carol =$6,300 (255% APY)
DISCLAIMER: The example above is purely for illustrative purposes. CitaDAO.io is not offering investment advice, endorsement of the approach, or promising any outcome.