NasDex
  • GUIDANCE
  • BACKGROUND
    • Current Market Pain Points
  • TECHNOLOGY
    • Explanation of Terminology
    • Overview
      • nAsset Minter
      • Liquidity Provider (Long Farmer)
      • Short Farmer
      • Trader
      • NSDX Stakers
      • Liquidation Mechanism
      • Other Mechanisms
    • Fees
    • Collateral Parameters
    • Calculation formula
  • NSDX Token
    • Tokenomics
  • HOW TO USE
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  1. TECHNOLOGY

Calculation formula

PreviousCollateral ParametersNextTokenomics

Last updated 3 years ago

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Mint collateral ratio:

C-ratio =(Value of Collateralized asset/ Value of Minting asset)*100%

Asset value=Quantity*Multiplier*Price

Quantity of minting nAssets to be opened a position:

Increase/Decrease margin:

The amount of collateralized assets that can be withdrawn should be kept above the minimum collateral ratio, and the amount that can be withdrawn should minus the fee.

Mint/Burn nAssets:

The quantity exceeding can be extracted from the CDP

Auction:

The amount of collateralized assets the buyer may receive based on the discount rate (the amount collateralized by paying the minting assets in the position) :

* The remaining unsold collateralized assets will be returned to CDP's owner.

Staking NSDX APR:

Staking NSDX calculates the time-weighted average award for the past 15 days and then annualize:

[Daily NSDX Emission x 365 x NSDX Price x (Pool Weight/Total Pool Weight)]/TVL

LP Mechanism:

Opportunity constancy algorithm X *y= K (initial before trading)

Where X and Y respectively represent the quantity of two kinds of assets in the liquidity pool, and K is the opportunity of the two kinds of assets.

If K is kept constant, x increases and y needs to decrease

x*y=k=(x+ΔX)*(y-ΔY)

Considering the Swap fee (assuming that the Swap fee is p%), the formula is:

【x+ΔX*(1-0.p%)】*(y-ΔY)

Price Slippage:

Create a new pool:

Where x0 and y0 are the initial number of pools

Number of LP added for liquidity minting:

Where x+ and y+ are the increments on both sides of the specific pool

Burn:

Burn LPtoken to extract asset