Fees and Formulas
When converting vePEARL to CAVIAR, a dynamic conversion fee is applied. The fee is influenced by the balance of the stable LP on Pearl and ranges from a minimum of 12.5% to a maximum of 70%. The dynamic conversion fee formula is:
Dynamic fee = ($CVR_balance / $PEARL_balance) * min_conversion_feeExample:
If the balance in the CAVIAR/PEARL LP is 1000 $PEARL and 2000 $CVR, the conversion fee would be:
Conversion fee = (2000 / 1000) * 12.5% = 2 * 12.5% = 25%To understand the CAVIAR advantage, let's break down the distribution formulas for the LPs and staking pool.
- 1.Calculate CVR_total:
CVR_total = CVR_Balance + CVR_staked - 2.Calculate LPs Distribution:
LPs Distribution = (CVR_LP_balance / CVR_total) * (Rebase/2) - 3.Calculate Staking Distribution:
Staking Distribution = (Rebase/2) - LPs Distribution
Example:
Assuming
CVR_LP_balance is 1000, CVR_staked is 800, and Rebase is 200:CVR_total = 1000 + 800 = 1800 LPs Distribution = (1000 / 1800) * (100/2) = 27.78Staking Distribution = (100/2) - 27.78 = 22.22Last modified 1mo ago