Automatic Settlement
Last updated
Last updated
When the pool expires, the protocol will settle the user's holdings of C and 10x by automatically converting them into the input cryptocurrency based on the spot price at settlement. The automatic settlement formulas are as follows:
When the spot price is greater than the AVG price:
At this point, 1 C = 1 USD. The settlement quantity will be calculated based on the amount of C held by the user. The calculation formula is as follows:
The calculation formula for the Yield Token Settlement Quantity is based on the amount of 10x held by the user. The calculation formula is as follows:
When the spot price is less than or equal to the AVG price:
At this point, the value of 1 C = PC / Total C. The settlement quantity will be calculated based on the amount of C held by the user. The calculation formula is as follows:
Since the pool has not captured external value, 10x is worthless, and the Yield Token Settlement Quantity is 0.
E.g. A pool with an AVG price of 3,000U and a spot price of 4,000U. The pool has a total of 1,000 10x tokens, and the total profit of the pool is 100,000U (each 10x token corresponds to a dividend value of 100U). A user holds 20 10x tokens and 500 C tokens in this pool.
Upon expiration,
The Cost Token Settlement Quantity obtained by the user is calculated as follows:500/4000=0.125ETH
The Yield Token Settlement Quantity obtained by the user is calculated as follows:100000/1000*20/4000=0.5 ETH
PC is the abbreviation for Pool Cap
When the spot price is less than or equal to the AVG price, users can vote to decide whether to extend the pool's expiration time.
After automatic settlement, users need to manually claim the tokens obtained from the settlement.