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Farm Details

Liquidity Tokens (LP Tokens)#

youves Swap#

If a user deposits liquidity into a swap (e.g. uUSD and USDT), he receives liquidity tokens, which represent the deposited assets. For the flat-curve CFMM swaps, the LP tokens are created by this simple formula:

LP_token_amount = amount_token_A + amount_token_B


The weekly reward amount gets distributed to stakers in the farm. Depending on the farm there can be different reward types with different distribution formulas.

Reward Type#

#Reward TypeDescription
1Flat incentiveThe rewards are allocated over time, proportionally to the user's stake in the farm and the weekly reward. This is how most farms work.
2Long-term inventiveThe the weight of a user's stake is are growing over time, up to the maximum at 180 days age of the stake. More details below. The goal is to incentivise long term staking.

Flat Incentive#

Farms have a defined reward distribution per period. this can be weeks, days and for calculation purposes typically seconds.

rewards_per_week rewards_per_day = rewards_per_week / 7 rewards_per_second = rewards_per_day / (24 * 60 *60) 

At any time a user's token_fraction is equal to

token_fraction = number_staked_LP_tokens_of_user / number_LP_tokens_total

The calculation of a user's rewards reward_payout is straightforward for any time period time_period_in_seconds where the token_fraction and rewards_per_second stay constant.

period_reward_payout[i] = token_fraction[i] * time_period_in_seconds[i] * rewards_per_second[i]

The aggregated_reward_payout is just the sum of the reward_payout.

aggregated_reward_payout[i] = aggregated_reward_payout[i-1] + period_reward_payout[i]

Whenever either of token_fraction and rewards_per_second need to be recalculated, the above formula can be re-applied.

Long-Term Incentive#

The unweighted reward payout reward_payout and aggregated_reward_payout is as in the flat incentive case above.

Both now and timestamp ts_applied have seconds as units. now is expressed as the current Unix Epoch time.

max_release_days = 180max_release_seconds = max_release_days * 24 * 60 *60 =  15,552,000

To calculate the age at a given time age_current, the formula is as follows:

age_current = MIN(max_release_seconds, now - ts_applied)

The weight at a given time weight_current is

weight_current = age_current/max_release_seconds

The number of LP tokens a user has in the pool at a given moment are called number_LP_tokens_current.

Upon adding more LP tokens to the pool, the applied age age_applied and number_LP_tokens_current get updated.

age_applied = (number_LP_tokens_current * age_current + number_LP_tokens_added * 0) / (number_LP_tokens_current + number_LP_tokens_added)number_LP_tokens_current = number_LP_tokens_current + number_LP_tokens_added

As a consequence the applied timestamp ts_applied is updated as follows:

ts_applied = now - age_applied 

If the number_LP_tokens_current previously was 0, then

age_applied = 0 


ts_applied = now

When claiming rewards, the claim which gets paid out is weighted_aggregate_reward_payout. It is calculated as:

weighted_aggregate_reward_payout = aggregated_reward_payout * weight_current

Furthermore, the residual of aggregated_reward_payout - weighted_aggregate_reward_payout is distributed to the ongoing participants in the farm, proportional to their token_fraction.

Finally the claiming user's aggregated_reward_payout gets reset.

aggregated_reward_payout = 0 

When claiming without withdrawing LP tokens, the applied timestamp ts_applied remains unchanged.

A user's stake of LP tokens can only be withdrawn in full and upon withdrawing, the aggregated_reward_payout is calculated and the rewards are automatically claimed and the residual rewards are distributed to the farm.