V1: Deployment Logic
Note: The following is information related to Tokemak v1 , Tokemak v2 "Autopilot" docs are underway and will replace much of the below information.
General
Tokemak deploys a portion of its POA to venues based on the votes of the LDs while using LP provided assets as leverage (defined by the POA multiplier). A portion of these rewards generated by the POA are available to claim by accTOKE lockers.
There are several objectives/constraints when determining liquidity deployments. This system is referred to as the "Tokemak Allocator".
Follow LD Votes
Firstly the allocator determines deployments based on liquidity directors votes alone, ignoring all other constraints.
Enforce Guardrails
The allocator determines the available capital that can be used for deployments.
POA Multiplier (0.5x): Determines the amount of LP assets that can be deployed alongside the POA, both on the Reactor Token and Pair Asset (ETH) side resulting in a deployable amount of assets for those.
Available Pair Asset: If the quantity of deployable Pair Assets (eg. ETH) is insufficient to deploy all available liquidity, the ETH is pro rata distributed across the Token Reactors.
More detailed information on the guardrails can be found in the Guardrails & Impermanent Loss section.
The allocator iterates through the above process multiple times with two overarching goals;
Maintain existing size of individual deployments
Maximize total utilization of POA and LP assets
It is important to note that the above logic can lead to deployments that at first glance, may not add up. For example; the Token Reactor with the most TOKE/LD votes may not result in the most liquidity deployed if there are fewer POA or LP assets available relative to other Token Reactors.
Note that these are starting parameters and we will be able to significantly relax these as more data becomes available.
Deployment Logic & Equations
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