Entropyfi
  • 🚀Welcome to Entropyfi
  • 1️Entropyfi 1.0
    • 🎮Prediction Market
    • 🏊Sponsorship
  • *️Entropyfi (50,50)
    • 🥁Overview
    • ↘️Cope-Free Hedge
    • ↗️Rekt-Free Leverage
    • 💚VSQ Tutorial
    • 🤝Partnership
  • 💊Entropills
    • 💎SSOV Entropills
    • 🚢Atlantic Entropills
  • 🌈$ERP Token
    • 📑ERP Market
    • 🍕ERP Tokenomics
    • 🥩Vault Inc $ERP Staking
    • 💹[Replaced by Vault Inc] Liquidity Mining for ERP
  • 🏗️Developers-1.0
    • ⚓Deployed Contracts
    • ✨Game Logic
    • 🤑Compound Feature
    • 🎨Pool Tokens Design
    • 🧮Token NAV Calculation
  • 💼Jobs
    • 🧙‍♂️Entropyfi Ambassador Program Lead
  • 🏘️community
    • Join the Community
    • Telegram
    • Discord
    • Twitter
    • Medium
  • Archived
    • 👻Aavegotchi Snapshot Mining
Powered by GitBook
On this page
  • Initial Value
  • Calculate Interest
  • Update Token NAV

Was this helpful?

  1. Developers-1.0

Token NAV Calculation

How we calculate the pool token values 🧐

PreviousPool Tokens DesignNextEntropyfi Ambassador Program Lead

Last updated 3 years ago

Was this helpful?

Initial Value

Initially, all the pool token values are 1:1 to the principal token of the pool. Token NAV gets updated at the end of each round.

NOTE: Sponsor Token will always be 1:1 to the underlying collateral tokens!

Calculate Interest

All pool funds will be supplied to Lending Protocols to generate Interest during the locking period. At the end of each round, we get the redeem from Lending Protocols and calculate the interest.

Update Token NAV

If bid token price ended up higher than the target price --> Long Token Value will increase (vice versa)

// Long_Token_NAV = Total Collateral Tokens Can Be Redeemed
// Let we assume 
// **TotalInterest** is the total price during one game round

Long_Token_NAV = Total_Long_Deposit + TotalInterest
Value_Per_Long_Token = Long_Token_NAV / Long_Token_Supply

Above is a simple example of the principle behind our protocol, we strongly recommend users securing pool tokens in a safe wallet because it is all been backed up by real token assets.

🏗️
🧮
🌟
✨
💫
💰