The Degis platform itself is simply a blockchain protocol that, by design, does not offer any resources for utilization. As such, in for the protocol to perform its core function of providing discretionary mutual cover, users would need to be incentivized to stake their digital asset (e.g. USDC.e, Protection Token) into the mutual cover pools for the product so that buyers may obtain protection tokens. As compensation for opportunity costs and risk incurred, these stakers would be rewarded with DEG (i.e. "mining" on the Degis platform), according to each user's relative contribution after various adjustment and correction parameters.
For the mining of naughty price pools, the total daily reward is related to the TVL (total value locked) of naughty price. The increase of daily reward is stepped. When TVL reaches a certain amount, the total daily reward will jump to a higher level.
The reward proportion that each naughty pool can allocate is determined according to their TVLs at the end of Initial Matching. For a naughty token pool, there are two mining pools --- IM pool and normal pool. The reward distribution weights of them are ×1.2 and ×1 separately.