➗Vaults math

Maths behind

The leveraged yield is being split into 3 parts:

• JLP part

• USDC part

• Treasury part (0% while in beta.)

Protocol starts it calculations with USDC part. The rate accrual will be sourced from the JLP that was funded with USDC vault. The model uses the following equation:

USDCaccrual = U * A * J

Where:

• U is the utilisation rate of the USDC vault

• A is the USDC vault's JLP yield share

• J is the JLP yield

The A parameter is derived from the USDC vault utilization ratio based on the following formula:

Determining the stable yield hinges on USDC vault utilization ratio. The amount of available JLP leverage relies on available USDC in USDC vault. Our vaults capacity will consistently meet market demand, guaranteeing optimal returns for our users.

After 'A' has been identified, protocol identifies the yield for JLP vault users.

JLP Vault users Yield = Total leveraged yield - A (Yield share to USDC Vault)

This model of dual vaults working together allows balanced way to distribute yield and incentivise liquidity flow to either JLP vault or USDC vault based on related demand reaching target equilibrium at 70% USDC utilisation.