⚖️Liquidity Deployment

Liquidity being deployed to exchanges will depend on various factors to ensure proper collateralization in pools as well balanced pairing of assets.

If liquidity is provided to ETH/USDC pair, here ETH is the Base asset and USDC is the Quote asset .

Parameters that determine the deployment logic

1) Quantity of asset in PCA reserve - Do not deploy more than 3x (Alpha) the quantity available in reserve.

2) Base asset in pool available to pair with quote asset - If quote asset is not sufficient to pair with all base assets , it will be proportionately distributed across pools.

3) DELIK staked in the pool - DELIK staked + Reserve of Ethereum = LP Sushi. Which means at least 2/3rd of the value of asset in pool should be staked by LDs.

Equations and logic.

1) Based on qty asset in PCA -

  • (ABC_inPCA) = QTY of asset in Reserve .

  • (Alpha) = Reserve multiple

  • (ABC_LP) = QTY of asset in pool .

  • (ABC_deployable) = QTY of asset that can be deployed .

2) Based on quote asset available to pair -

If the qty of quote asset available to pair isn't enough , the quote asset will be pro rata distributed across the pools.

Last updated