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In this portion of the document, we will define the calculation for protocol weight with respect to emissions. |
Protocol Power specifically refers to the influence users have over ZeroLend's governance and operational decisions. The calculation of total protocol power is as follows:
where,
$$ f(T_p) = f(4 \times dLP_p+1\times Z_p) = \begin{cases} 0 & \text{if } 0.00 \leq T_p< 0.10 \ 0.5 & \text{if } 0.10 \leq T_p <0.15\ 0.75 & \text{if } 0.15 \leq T_p < 0.20 \ 1.0 & \text{if } 0.20 \leq T_p <0.25\ 1.1 & \text{if } 0.25 \leq T_p < 0.30 \ 1.25 & \text{if } 0.30 \leq T_p <0.40\ 1.5 & \text{if } 0.40 \leq T_p < 0.50 \ 2.0 & \text{if } 0.50 \leq T_p \
\end{cases} $$
We prioritize liquidity provision by offering enhanced incentives for dLP locking over single asset staking. The formula assesses dLP and $ZERO percentages (dLP_p and Z_p) locked against the USD value of users' lending deposits, favoring dLP locking fourfold for two key reasons:
- LP tokens contribute more significantly to ZeroLend's liquidity and overall ecosystem health.
- LP tokens carry more risk due to impermanent loss
Traditionally, a maximum APR for dLP at 5% of deposited assets is now extendable up to 12.5%, with the option to boost this further by locking $ZERO tokens, whose USD value is considered four times for this purpose. This enhances rewards for users taking on the additional risk of LP staking.
{% hint style="warning" %} This functionality is scheduled to go live shortly. {% endhint %}