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Token NAV Calculation
How we calculate the pool token values 🧐
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!
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.
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.
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