The BCKGov Savings Account is an integral part of the Bound Finance system, serving as a way to distribute protocol revenue, whilst also determing the eligibility and distribution of further emissions called BCKGov emissions. This helps resolve the issue with losing APY from sharing yields from your LSD tokens or LSDFi stablecoins to fund the cashback app and provide a spending limit for cashback app users.
The BCKGov Savings Account operates as follows:
Deposits : Users of Bound Finance can deposit their BCKGov tokens into the BCKGov Savings Account, here theyll get a share of daily protocol revenue, but also limited yield boost events from the protocol.
Daily Allocation of eUSD: Each day, Bound Finance contributes an amount of WETH, USDC or $BCKGOV to the BCKGov Savings Account which comes from the protocol profits. This yield is given by taking 25% of the purchase amount from user's buying unclaimed BCKGov emissions. We will also be having a 3% tax on BCKGOV which is split in 3 ways, 1% is burnt, 1% to the BCKGOV savings account and 1% to the Bound Protocol Treasury.
Moreover, these yields are enhanced by sTETH yields, converted into $eUSD, originating from the protocol's treasury ETH, which is replenished from protocol earnings.