Hello,
I read the new whitepaper, and it seems that the liquidity pool profit allocation logic was changed.
So the data+logic is this Medium article is no longer valid?
https://medium.com/@trade.io/new-participation-schedule-participate-in-the-liquidity-pool-from-500-trade-tokens-98bc06b269d9
And with the new logic, the minimum token we need to lock is 2500. 'The number of token locked' is to let us know what profit allocation % we have: 10% (2500 tokens locked) - 110% (25000 tokens locked), and the maximum of our contributed asset to the pool.
These locked tokens value + X amount of asset <= the maximum of our contributed asset to the pool according to our tier.
On a specific day:
(the value of my locked tokens + my contributed asset X) / total value of locked tokens and asset of the pool = my portion of profit = A%
A% * profit = the hypothesis profit = P
P * profit allocation % = actual earning of that day.
Am I understand the liquidity pool logic correctly?
I'm confused as to if the value of our tokens count at all when we locked it. For example: I buy 5000 tokens (all I have). and lock these 5000 tokens in the pool. (I don't contribute anything further to the pool. X =0) ---> from that day onward, I can earn profit based on my 5k tokens, or I can only earn profit if X>0?
Your example is not clear to me:
"To illustrate a sample situation using the graduated plan in the table above, let’s take the following hypothetical
situation using a 1 Trade Token = 1 USD Equivalence:
Participant A has locked 2,500 Trade Tokens and contributes with $10,000 to the pool - this means they will be
eligible for a 10% participation."
---> Does this mean participant A lock 2500 tokens and contribute a further $7500 in asset to the pool. or A lock 2500 tokens and contribute a further $10000 in asset to the pool?