Vyper Protocol

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Specifications

Details

SOL/USD

The Orca SOL/USDC LP token, with token mint [TBC]

The SB_PRICE and SB_LP oracle prices

Every Friday at or around 08:00 UTC

The market price of SOL/USD as reported by the Switchboard oracle [TBC]

The market price of the Orca SOL/USD LP token as reported by the Switchboard oracle [TBC]

Maximum of [TBC] per Vault and [TBC] per user

IL-for-fee as per formula below

Variable, as determined at or around Epoch Settlement Time

Variable, as determined at or around Epoch Settlement Time

Settlement Formulas

IL-for-fee

In this contract, a share of farming rewards is paid by the *Protected *side in exchange for the reimbursement of all the IL realized on the epoch, within the Protection Range.

We compute the settlements for the two sides as follows:

$\Pi^u_P=\frac{C_P}{\text{LP}_T}\left[(\text{LP}_T-\text{LP}_0-2N_{LP}(\sqrt{P_0P_T}-P_0))(1-\lambda)+\text{LP}_0+N_{LP}(P_T-P_0)\right] \\ \Pi_P=\min(C_P+C_L, \Pi_P^u) \\ \Pi_L=C_P+C_L- \Pi_P$

where:

- β$C_P, C_L$are the amounts of LP tokens deposited on the
*Protected*and*Leveraged*side, respectively - β$\Pi_P, \Pi_L$are the amounts of LP tokens settled for the
*Protected*and*Leveraged*side, respectively - β$P_0, P_T$β are the initial and final underlying prices, respectively
- β$\text{LP}_0, \text{LP}_T$are the initial and final LP token prices, respectivelyβ
- β$N_{LP}$β is the notional of base asset (e.g. SOL) contained in the LP tokens,$N_{LP}=\frac{\text{LP}_0}{2 P_0}$β
- β$\lambda \in [0, 1]$is the Interest Split

The Protection Range

$[P_l, P_h]$

is computed as follows:$P_l=\max\{P: P<P_0,\ \Pi_L=0\} \\ P_h=\min\{P: P>P_0,\ \Pi_L=0\}$

Note that

$\text{LP}$

depends indirectly on $P$

.Last modified 20d ago

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Settlement Formulas