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# Pool Tokens Design

Users will get pool tokens when depositing into the pool. With pool tokens, users can withdraw from the pool anytime!
Pool Token value gets updated when winners are announced. Every pool has its own tokens (short/long/sponsor tokens). They are used as proof of users' collaterals in the pool. Token will be burned when users withdraw from the pool.

## ​💰 Short Token

Users will get short tokens when they deposit tokens with bidding on short.
For example
🕹
, on BTC - DAI weekly game, once user A deposits 1,000 Dai tokens to predict BTC price will go down
📉
at the end of next week. (assumption: pool short token value is 2 Dai currently)
Then, once user A deposits principals, user A will get 500 Short BTC-Dai Pool Token.
At the end of the week, user A finds that the prediction is correct
(i.e. the BTC price indeed ended up being a lot lower
📉
than the game bidding price), the short pool token value may increase from 2 Dai to 2.1 Dai.
The users can choose to either get 1,050 aDai or Dai when they withdraw from the game:
$500 \times 2.1 = 1050 \space\text{aDai / Dai}$
If the user chooses to hold, then he will keep the same decision and automatically enrolled in the next round game -> The gain in this round will be used as principals for the next round (i.e. compound feature
💹
).
If the user chooses to swap decisions and the current long pool token price is 1 Dai, then the user's short BTC-Dai Pool tokens will be burned and the pool will mint 1,050 corresponding long BTC-Dai Pool Tokens.
$\text{total long token amount} = \dfrac{ \text{user's ShortTokenValue}}{ \text{LongTokenValue}}$
The short token will be burned once the user redeem or withdraw from the protocol.

## ​💰 Long Token

The users will get long tokens when they deposit tokens with bidding on long.
The long token will be burned once the user redeems or withdraw from the protocol.
Sponsors are not eligible to get rewards from the game. Instead, sponsors will supply interest to the pool. If a user sponsors USDT, he will get entropyUSDT (1:1 to USDT), as proof that he sponsored one of our pools.
To mining our governance token, the user has to be a sponsor in one of our pools. Staking sponsor tokens into our liquidity mining smart contract to mint governance tokens!