Construction of dLP & $ZERO Power

ZeroLend's dLP power, closely mirroring Radiant Capital's model, is a pivotal metric in determining a user's influence within the protocol and their corresponding emissions rewards. Here's a streamlined explanation of how it works:

dLP Power Calculation (P_dLP)

  • dLP Power (P_dLP): This metric reflects a user's share of the total dLP pool, adjusted by a locking multiplier to reward longer commitments.

PdLP=dLPtp×LdLP=dLPTotal dLP×LdLPP_{dLP} = dLP_{tp} \times L_{dLP} = \frac{dLP}{\textrm{Total dLP}} \times L_{dLP}

  • PdLP P_{dLP} is the user's total percentage of dLP relative to the entire pool.

  • LdLPL_{dLP} is the locking multiplier, enhancing power with longer lock periods.

The longer the user locks dLP, the greater the power they have and ultimately the greater the emissions the user receives.

Single-Staked $ZERO Power (P_Z)

  • $ZERO Power (P_Z): Similar to dLP power, this calculates a user's stake in the total $ZERO pool, also influenced by the duration of the stake.

PZ=$ZEROtp×LZ=$ZEROTotal ZERO×LZP_{Z} = \$\textrm{ZERO}_{tp} \times L_{Z} = \frac{\$\textrm{ZERO}}{\textrm{Total ZERO}} \times L_{Z}

The following are the weighting coefficients:

Time Lock

L_d-Value

L_z - Value

1-Months

2

0.5

3-Months

6

1.5

6-Months

12

3

12-Months

24

6

24-months

n/a

12

48-months

n/a

24

Combining Powers for Total Protocol Power

By integrating both dLP and $ZERO powers, the total Protocol Power is derived, factoring in both contributions and their respective locking multipliers.

P=PdLP+PZ=dLPtp×LdLP+$ZEROtp×LZ=dLPTotal dLP×LdLP+$ZEROTotal ZERO×LZ P = P_{dLP} + P_{Z} = dLP_{tp} \times L_{dLP} + \$\textrm{ZERO}_{tp} \times L_{Z} \\ \hspace{2em}\\= \frac{dLP}{\textrm{Total dLP}} \times L_{dLP} + \frac{\$\textrm{ZERO}}{\textrm{Total ZERO}} \times L_{Z}\hspace{0.8em}

Final Equation for Protocol Power

Protocol Power=(P)×f(Tp)=(dLPTotal dLP×LdLP+$ZEROTotal ZERO×LZ)×f(4×$ZERO2×2Deposits+1×$ZERO1Deposits)\textrm{Protocol Power} = (P) \times f(T_p) \\ = (\frac{dLP}{\textrm{Total dLP}} \times L_{dLP} + \frac{\$\textrm{ZERO}}{\textrm{Total ZERO}} \times L_{Z}) \times f(4 \times \frac{\$\textrm{ZERO}_2 \times 2}{Deposits} + 1 \times \frac{\$\textrm{ZERO}_1}{Deposits})

This formula underscores the significance of both liquidity provision and single asset staking in enhancing a user's impact on the protocol's governance and reward distribution, thereby incentivizing long-term participation and investment.

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