Math
Calculations used in the YieldBlox protocol.
Utilization Ratio Calculations
Utilization Ratio
Used to calculate the current utilization ratio for an asset.
Where: the Utilization ratio liabilities outstanding (see) the total balance of the pool\
Originating Utilization Ratio
Used to calculate the originating utilization for an asset.
Where: the originating utilization ratio the utilization delta payment 2 utilization-modifying transactions after loan origination the block of the next utilization-modifying transaction the loan origination block
Utilization Tracker Delta *depreciated*
Used to calculate the utilization tracker delta of a transaction. This allows the protocol to measure an asset's average utilization ratio over a period of time.
Where: the utilization tracker delta the total number of liability tokens at the pre-transaction ledger state of the last utilization-modifying transaction the total pool balance at the pre-transaction ledger state of the last utilization-modifying transaction the block of the last utilization-modifying transaction the block of the second-to-last utilization-modifying transaction
Utilization Adjustment *depreciated*
Used to calculate the necessary utilization ratio delta adjustment.
Where: the utilization adjustment the place of the furthest back incorrect utilization delta payment the place of the utilization delta payment of the last utilization-modifying transaction the total number of liability tokens at the pre-transaction ledger state of the utilization-modifying transaction 2 utilization-modifying transactions ago the total pool balance at the pre-transaction ledger state of the utilization-modifying transaction 2 utilization-modifying transactions ago the block of second-to-last utilization-modifying transaction the block of the third-to-last utilization-modifying transaction the utilization delta payment of the last utilization-modifying transaction the utilization adjustment payment of the last utilization-modifying transaction
Average Utilization Ratio *depreciated*
Used to calculate the average utilization ratio for a loan.
Where: the average utilization ratio the current utilization tracker balance the utilization tracker balance at the time of loan origination The utilization delta payment of the next utilization tracker transaction (this will be applied in the next utilization modifying transaction, but it needs applied now to get an accurate average utilization) the utilization ratio adjustment the block of the last utilization delta payment the block at loan origination the current utilization ratio the current block
Accrued Interest Tracker Updates
Used to calculate accrued interest tracker updates
Accrued interest tracker update amount
The block the last accrued interest tracker update occured on
The block the accrued interest tracker update before last occured on
Interest Rate (see equation)
Average blocks per year. Hardcoded variable. Assumed to be 6,307,200 (5-sec ledger close time).
Accrued interest tracker balance
Liability Token Calculations
Equations used to calculate the value of liability tokens and user liabilities.
Liability Tokens Issued
The number of liability tokens issued to a user when they borrow from the pool.
liability tokens issued
Borrow amount
Accrued Interest tracker balance for the asset being borrowed
Estimated next accrued interest tracker balance
Liability Token Value
The value of a single liability token. Used when calculating the value of a user's liability.
The value of a liability token
Accrued Interest tracker balance for the asset being borrowed
Estimated next accrued interest tracker balance
Liabilities Outstanding
Liabilities Outstanding for a given asset
liabilities outstanding
liability tokens outstanding
liability token value
Interest Rate Calculations
Interest rates change based on the interest threshold and rates below.
threshold one; initially set to 0.75 threshold two; initially set to 0.90 threshold three; initially set to 0.95 rate zero; initially set to 0.20 rate one; initially set to 1.5 rate two; initially set to 7.5 rate three; initially set to 15
Base Interest Rate
Used to calculate the current interest rate when the utilization rate is below .
Where: the base interest rate the utilization ratio the base rate constant (low ). It is set by a pool data entry and controls the base interest rate for an asset; initially set to 0.05
Interest Rate - Threshold One
Used to calculate the current interest rate when the utilization rate is above .
Where: interest rate one the utilization ratio the base interest rate
Interest Rate - Threshold Two
Used to calculate the interest rate when the utilization rate is above .
Where: interest rate two the utilization ratio interest rate one
Interest Rate - Threshold Three
Used to calculate the interest rate when the utilization rate is above .
Where: interest rate three the utilization ratio interest rate two
Average Interest Rate
Calculated using the above interest rate equations, but becomes an aggregated utilization ratio.
Originating Interest Rate
Calculated using the above interest rate equations, but becomes an originating utilization ratio.
Stable Rate
Used to calculate the stable interest rate for a loan.
Where: the stable rate the originating interest rate the utilization ratio at the time the loan was originated
Minimum Collateral Requirement
Used to calculate the minimum collateral required for a loan.
Where: the minimum collateral value requirement the value of the loan the average liquidation factor of the selected collateral types
Pool Token Calculations
Pool Token Issuance
Used to calculate the number of pool tokens issued to a user account.
Where: the number of pool tokens to be issued to the user the asset balance the user deposited the current number of outstanding pool tokens the current asset balance amount the current number of outstanding liability tokens
Pool Token Value
Used to calculate the value of a pool token
Where: the value of a pool token the asset balance in the pool the total number of liability tokens outstanding the total number of pool tokens
Maximum Liquidation Amount
Used to calculate the maximum amount of a loan's value the liquidator is allowed to liquidate in order to reach a health factor of 1.02.
Where: the maximum allowable liquidation amount the average liquidation for the account's collateral balances the collateral value the liability value the average liquidation incentive for the collateral assets being withdrawn the average liquidation factor for the collateral assets being withdrawn
Health Factor
Used to calculate an account's health factor.
Where: the account's health factor the number of collateral assets the liquidation factor for asset the collateral value of collateral asset the number of outstanding loans the liability value of loaned asset
Maximum Liability
Used to calculate the maximum liability an account can hold at one time.
Where: the maximum liability value for an account the number of collateral assets the liquidation factor for asset the collateral value of collateral asset
YBX Issuance
Used to calculate how much YBX to issue.
Where: the number of YBX issued the total number of YBX tokens to be issued; 1,500,000,000 the total number of YBX tokens outstanding the total YBX issuance rate; initially 0.0075
Issuance Ratio
Used to calculate how much YBX to issue per liability or pool token
Where:
the issuance ratio for a given liability or pool token the issuance allocation for the given liability or pool token the total number of YBX tokens to be issued for the period the total number of the given liability or pool token in claimable balances
Pessimistic Block-Weighted Average Position Size
Used to calculate the pessimistic block-average position size for a given collateral or liability position. Used to calculate YBX issuance for a position
Where:
the positions pessimistic block-weighted average size the most recent position size the previous position size the block of the most recent issuance update payment the block the position was last modified on the greater of the block of the last issuance update payment prior to the position being modified and the block the position was last modified on before the most recent modification.
YieldBlox Default Protection Amount
Used to calculate how much of the user's liability should be taken on as pool debt as part of the Default Protection Program.
the YieldBlox Default Protection amount the liability value the collateral value the average liquidation incentive for the account's collateral balances
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