ECD holders can lock their ECD for veECD on Echidna’s platform.The more tokens you lock and the longer your lock duration, the more veECD you receive (and the bigger your boosting power). A boost multiplier is applied to your ECD emissions based on your veECD balance. Your boosting power decays linearly over time as your veECD approaches expiration.
The lock duration is capped at two years. You may increase the amount of locked tokens and extend your token lock to the maximum at any time. Keep in mind withdrawals are not possible until the lock duration expires. You cannot have ECD expiring at different dates.
How Is my boost multiplier calculated?
Echidna’s boosting mechanism is modeled after Curve’s lock boosting. We have modified their formula for our purposes.
The variables in the formula are defined for your reference:
- LP Provided — # of LP tokens deposited
- Total Liquidity — total # of LP tokens deposited
- Voting Balance — amount of veECD you currently possess
- Voting Total — aggregate amount of veECD
This formula calculates your boosting weight by taking the smaller amount of two values.
To calculate your boost multiplier, divide your boosting weight by the # of LP tokens you have provided, and multiply the result by 3. The boost multiplier is applied to your ECD emissions and is subject to change based on other LP deposits and ECD locks.
To maximise your boost, your % of LP relative to total LP pool the must match your % of veECD relative to aggregate veECD.
What happens when more people lock ECD? How does that affect my boosting?
In addition to time decay, new deposits and ECD locks also affect your boost multiplier since the % of your LPs and veECD will decrease accordingly.
The system will recalculate your boost multiplier for a specific pool and apply it to your emissions whenever you interact with that pool via a deposit, claim, or withdrawal. This means your multiplier rebases every time there is an interaction.
How is my boost applied? Can I boost more than one pool?
Your boost is applied automatically when you lock ECD for veECD. It will apply to both the ECD / AVAX pool and the ecdPTP / PTP. You only have to lock ECD for your veECD boost to be applied to both pools.
The boost multiplier is pool specific given the various factors that influence its calculation (aggregate TVL, your TVL, aggregate veECD etc.).
Is the APR displayed for these two pools Instant or Projected?
The APR figures shown are the Instant APR. You can use it to calculate your immediate returns.