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Updated LPTs INDY rewards formulas #8

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@lokdao lokdao commented Feb 27, 2023

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@lokdao lokdao requested review from aske and advaitrane98 February 27, 2023 15:06
main.tex Outdated
@@ -1524,7 +1512,7 @@ \subsection{Liquidity Staking Rewards}\label{liquidity-staking-rewards}}

is calculated based on the staker's share of total iAsset staked:

\[r=k\frac{xy/z}{b\sum_{i=1}^{\left| a \right|}a_{i}b_{i}/c_{i}}\]
\[r=k\frac{x}{\sum_{i=1}^{\left| a \right|}a_{i}}\]
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There's still some confusion left in the formula because one iAsset can have multiple corresponding LP tokens.

Suppose iUSD iAsset has 2 LP tokens -- lp1 & lp2.

k was previously defined as an amount of INDY given per iAsset and if iAsset has several LP tokens then this k should be proportionally distributed between its LP tokens.

When calculating r we either need to change k to mean "INDY given per collection of LP tokens corresponding to a given iAsset" or change formula to something like this:

$r = k (\sum_l \frac{x_l}{\sum_i a_i^l} y_l )$

where

  • $l$ is a collection of types of LP tokens for a given iAsset (for iUSD it's {lp1, lp2})
  • $x_l$ is a current user's staked amount of a specific LP token (for a given iAsset)
  • $a^l$ is a set of specific staked LP tokens for a given iAsset for each user
  • $y_l$ is a proportion of total minted amount for a LP token $l$ of a total minted amount of all LP tokens for a given iAsset (for lp1 it's minted_amount_lp1 / (minted_amount_lp1 + minted_amount_lp2))

@lokdao lokdao requested a review from aske March 2, 2023 13:39
@lokdao lokdao removed request for aske and advaitrane98 April 13, 2023 15:07
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