​

Emissions in Our DeFi Ecosystem

​

What Are Emissions?

Emissions are additional token rewards distributed to users who participate in various activities within our DeFi platform. They are a key component of our tokenomics model, designed to incentivize specific behaviors and distribute the platform’s native token (RETRO) over time.

​

Key Components of Our Emission System

1. ve3,3 (Vote Escrowed 3,3): The backbone of our governance and incentive structure.
2. Gauges: Mechanisms for distributing rewards to different liquidity pools.
3. Merkl: An efficient reward distribution system developed by Angle Protocol.

​

How Emissions Are Calculated

Emissions in our platform are calculated based on several factors:

1. Total Emission Rate: The overall rate at which new RETRO tokens are minted and distributed.
2. Gauge Weights: Determined by ve3,3 token holder votes, affecting how emissions are distributed among different pools.
3. User’s Liquidity: The amount of liquidity a user provides to a specific pool.
4. Lock Duration and Amount: For ve3,3 token holders, longer locks and higher amounts increase emission rewards.
5. Boost Factor: Additional multiplier based on a user’s ve3,3 position.

​

Emission Calculation Formula

User Emissions = Base Emission Rate * Gauge Weight * User Liquidity Share * Boost Factor

Where:

• Base Emission Rate: Set by governance
• Gauge Weight: Determined by ve3,3 voting
• User Liquidity Share: User’s liquidity / Total pool liquidity
• Boost Factor: Based on user’s ve3,3 position (1x to 2.5x)

​

What Emissions Are Based On

Emissions in our platform are based on:

1. Protocol Parameters: Set by governance, including total emission rate and distribution schedules.
2. User Activity: Including liquidity provision, token locking (ve3,3), and participation in governance.
3. Market Dynamics: Gauge weights change based on community voting, reflecting market demand for different pools.
4. Time: Emissions often follow a decay schedule, reducing over time to create long-term sustainability.

​

How to Read Emissions for a Given User

To read emissions for a specific user:

1. Check User’s Positions:

   • Liquidity provided in different pools
   • ve3,3 lock amount and duration

2. Gauge Information:

   • Current gauge weights for relevant pools
   • Total liquidity in each pool

3. Use Merkl for Efficient Calculations:

   • Merkl handles complex reward calculations and distributions

This call would return an object containing:

• Claimable emissions
• Emission rate (tokens per second/day)
• Boost factor applied

​

Reading Emissions on Frontend:

1. Display total claimable emissions across all pools
2. Show emission rates for each pool the user is participating in
3. Indicate the user’s current boost factor
4. Provide a breakdown of emissions sources (e.g., liquidity mining, ve3,3 rewards)

​

Factors Affecting User Emissions

1. Changing Gauge Weights: As ve3,3 holders vote, pool emission allocations change.
2. User’s ve3,3 Position: Increasing lock amount or duration can boost emissions.
3. Pool Liquidity Changes: As total liquidity in a pool changes, individual share and emissions adjust.
4. Protocol-Wide Changes: Governance decisions can affect overall emission rates or distribution mechanisms.