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Expected Return

The formula for return calculation: Intuitively, the return depends on how much liquidity is provided over the total liquidity size of the platform - the liquidity provider receives the distributed BAL pro-rata. Every pool, with its asset types, has a different weight. BAL stakers are guaranteed 31% of the weekly BAL distribution. Therefore, the BAL stake boost should be calculated first per total BAL amount on the platform, then we can proceed to calculate the BAL distribution precisely.

Using a recent snapshot of the parameters:

This calculation process does not take into account the income from pool trading fees; this also does not account for the fact that BAL stakeholder does not enjoy BAL boost (~15%). Hence the final beta value should be multiplied by about 1.15, yielding the same result as the calculatorâ€™s: a return of 100%.

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