Currently, on the first and seventeenth of every month, we rebalance the emissions on our farms. The period between each rebalancing is referred to as a farming set. This rebalancing takes place on two levels: Individual pool emissions and total platform emissions:
These emissions are rebalanced on multiple factors. Including TVL, volume, transaction count, and market cap. These metrics are tracked and summed over each farming period. The higher each of these metrics are for a token, the more likely they are to have their farm increased.
Total platform emissions:
Currently we have designed our total platform emissions to grow linearly with TVL. Upon witnessing the growth of our platform over the last two months, it has become increasingly obvious that this algorithm is far too simple to maintain a platform of our size and complexity.
We are adjusting our emissions algorithm to include significantly more factors such as current daily BAR distribution, total volume, the price of $VYFI, TVL on the platform, and the change in all of these metrics over the farming set.
The design of this algorithm is to allow the maximum growth in emissions, when there has been minimal change in the platform’s condition over the farming set. The maximum increase in emissions per farming set will be 3%, with the minimum change in emissions of -2%.
As an example, if for the period of a farming set we have 0% change in all of the metrics listed above, the emissions will increase by 3%. If we experience a growth or reduction in all of these metrics by 50% the algorithm will reduce the emissions by 2%.
For the next farming set we will be increasing emissions by the maximum of 3%. We are doing this as an interim before we fully implement this algorithm next month. We will be making the algorithm public by the end of the month, alongside a calculator to assist users in understanding how the algorithm functions.