Deployment Logic

1. General

The quantities of assets deployed to outside venues are dictated by the following guardrail factors. More detailed information on the guardrails can be found in the "Guardrails & Impermanent Loss Mitigation" section.
  1. 1.
    Assets in reserve (eg ABC) Do not deploy more than 3x the qty available in the reserve ("Reserve Multiple")
  2. 2.
    LP provided base asset available to pair (eg ETH) If not enough provided by LPs the available base assets are pro rata distributed across reactors.
  3. 3.
    TOKE staked to the reactor Ideally, enough TOKE should be staked to the reactor to result in TOKE staked + ABC reserve = LP ABC, or in other words two thirds of the value of deployed LP assets should be staked by LDs.
Note that these are starting parameters and we will be able to significantly relax these as more data becomes available.
The below detailed logic is set up in such way that if followed in order will result in the correct deployed amount.

2. Deployment Logic & Equations

1. Based on assets in reserve

In a first step, the assets provided by the LPs (AssetLP) are passed through the first guardrail. The assets available in reserve multiplied by the reserve multiple (3) determine the maximum amount of LP assets deployable (LPAsset_Deployable1). This guardrail is applied to both the LP provided assets and the Genesis pool.
This guardrail is calculated based on Qty.
IF AssetinReserve×ReserveMultipleAssetLP   THEN AssetLP=LPAssetDeployable1IF AssetinReserve×ReserveMultiple<AssetLP   THEN AssetinReserve×ReserveMultiple=LPAssetDeployable1\begin{align*} &\text {IF $Asset_{inReserve} \times ReserveMultiple \geq Asset_{LP}$} \\ &\ \ \ \text {THEN $ Asset_{LP} = LPAsset_{Deployable1}$} \\ &\text {IF $Asset_{inReserve} \times ReserveMultiple < Asset_{LP}$} \\ &\ \ \ \text {THEN $Asset_{inReserve} \times ReserveMultiple = LPAsset_{Deployable1}$} \end{align*}
2. Based on ETH available to pair
In a second step, the system compares the amount of available ETH in the Genesis pool (after applying the reserve guardrail) to the LP provided assets in order to determine if all assets can be paired up with ETH. Should not enough ETH be available in the Genesis pool, the system will proceed by equally distributing the ETH across the reactors.
This guardrail is calculated based on notional value.
IF LPETHDeployable1SumAssetsDeployable1   THEN ETHPairable=1IF LPETHDeployable1<SumAssetsDeployable1   THEN ETHPairable=LPETHDeployable1÷SumAssetsAssetDeployable1 LPAssetDeployable1×ETHPairable=LPAssetDeployable2\begin{align*} &\text {IF $LPETH_{Deployable1} \geq SumAssets_{Deployable1}$} \\ &\ \ \ \text {THEN $ETH_{Pairable}=1$} \\ &\text {IF $LPETH_{Deployable1} < SumAssets_{Deployable1}$} \\ &\ \ \ \text {THEN $ETH_{Pairable}= LPETH_{Deployable1} \div SumAssets_{AssetDeployable1}$} \\ &\rightarrow \ LPAsset_{Deployable1} \times ETH_{Pairable} = LPAsset_{Deployable2} \end{align*}

3. Based on TOKE staked to the reactor

The last step is to assure a minimum amount of TOKE is staked to the reactor by the LDs. While more TOKE can be staked to a reactor the value of ABC deployed is not to surpass 1.5x the value of the TOKE staked to the reactor.
This is calculated based on notional value.