VP (Boost)

Voting Power

The proportion of my quantity to the entire amount of veGRV that may be acquired by locking up GRV is represented by the term VP (Share of Power). Thus, VP stands for your stake in the protocol; the more your stake, the larger your portion of the protocol's profits.

The following are factors VP affects.

Lending Pool Reward APR (Supply & Borrow)
Rebate

The interest in all farming pools is higher for individuals who are currently farming as VP increases. The total interest can rise and capital efficiency can rise even if the loan is provided under certain conditions since the higher interest comprises both deposits and loans. And VP is your portion of the weekly protocol income.

This protocol revenue is not distributed as a rebate in the form of the governance token GRV, but rather as actual coins and tokens.

The VP% calculation formula is as follows.

VP = \frac{\rm my~veGRV}{\rm total~veGRV} \times 100

The user's VP drops linearly as the overall veGRV grows since it represents the user's share as determined by the overall veGRV.

Therefore, to ensure substantial boost and rebate stakes, continual GRV lock-up is necessary.

What is Boost APR?

A multiple called "boost" virtually increases the value of an asset being farmed. When the value of an asset virtually rises, your portion of the pool's staking also rises, which causes the APR to rise naturally. Each Eco-Zone's maximum value that may be raised by the boost multiplier is different.

Boost Multiplier

Ecoscore is a unique value assessment system in Whitehole, where the higher the zone of the user, the higher the boost factor limit becomes. Even if a user has a high VP, a user with a low zone will not be able to receive a boost multiplier higher than the maximum boost multiplier of the zone.

Boost Formula

New~l = min(\ max\times l~, l+(\it A\times(L \times\frac{\rm my~veGRV}{\rm total~veGRV}\times \ base )))

my deposit or borrow ($) $=l$
my boosted deposit or borrow ($) $=New~l$
total deposit or borrow ($) $=L$
Minimum $= min$
$A = \rm Medium$

Assuming when $New~l$ is $300, $l$ is $100, the boost multiplier is 3.0x, and my asset assumed to be $300.

The GRV reward token issuance in the pool is limited, and it is possible to boost your assets through farming, therefore holding a high stake can result in a strong APR. The boost is influenced by VP which determines the boost multiplier and EcoScore which expands the limit of the boost multiplier.

If the user's APR consists of basic loan interest + reward interest(reward GRV), the boost concept will increase the reward interest.

The boost multiplier is multiplied by my depository&borrowed assets. The Max value indicates that it can increase up to the number shown. Since each user has a distinctive VP (veGRV stake ratio), deposit, and loan amount, the boosted APR of each user is set in different ways.

📊 Examples

I'll give you two examples to further assist you to understand.

Case 1. veGRV Holder (Staker)

The USDT Lending Pool now has 1,000 USDT deposited in it, and the Base APR is 10%.

James wants to deposit $100 USDT to begin farming. James obtained 200 veGRV using GRV lockup in order to obtain an additional boost ratio. James' VP is therefore 10% if there are 2,000 veGRVs overall.

Additionally, James is categorized as a Green Zone because he just started investing and hasn't claimed any GRV.

$EcoScore = Green$
$Max = 3.0$ x
$l=100$ USDT
$L = 1000$ USDT
$VP = 0.1$ %
$A = \rm 2.0$

Let's perform the calculation using the booster calculation formula.

New~L= min (3.0 \times 100~,~100 + (2.0 \times 1000~(L)~\times~0.1~(VP)~\times~1.5~(\ base) )

$New L = 300$ USDT

Combining the results, James in Green Zone will farm with $300 USDT multiplied by a coefficient of 3 rather than the original capital of $100 USDT as a result of the boost.

-> Base APR 10% + Boost APR 30%, USDT Boost 3.0x

Case 2. no hold

The USDT Lending Pool now has 1,000 USDT deposited in it, and the Base APR is 10%.

James wants to deposit $100 USDT to begin farming.

James began farming without a GRV deposit because he wanted to start making money immediately.

James' VP therefore begins at 0, the Red Zone by default, without any specified Zones.

Here is an overview of James' circumstance

$EcoScore = Red$
$Max = 2.0$ x
$l = 100$ USDT
$L = 1000$ USDT
$VP = 0$ %
$A = \rm 0$

New~L= min (2 .0 \times 100~,~100 + (0 \times 1000~(L)~\times~0~(VP)~\times~0.5 ~(base))

$New~L=100$ USDT

Combining the results, James in the Red Zone farms his initial investment of $100 USDT without any help.

-> Base APR 10% + Boost APR 0%, USDT Boost 1.0x

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Last updated 1 year ago