LARIX Token Distribution Rate Model

Parameters

1) Independent Variables

  • Optimal Utilization Rate: 50% (Borrow/Supply=0.5)

2) Dependent Variables

  • Supply Distribution Rate
  • Borrow Distribution Rate

3) Constant

  • Daily Distribution Speed
  • Daily Distribution Amount

Formulas

Variations

1, When ‘Utilization Rate= 0%’, which is located at blue point in the Graph 1,

  • The Larix_distribution_for_supplier is 100%.
  • The Larix_distribution_for_borrower is 0%.
  • At this point, if you borrow even 1 USDT (tiny amount) from liquidity pool, you will be awared all the Daily LARIX distribution.
The purpose of this is to encourage users to borrow assets from Larix when the utilization is 0% (the first borrower will get all the distribution rewards until the second borrow er appears) Supply Distribution will jump from 100% to 0% at this point.

2, When ‘0<Utilization Rate<50%’, which is located between the blue point and the red point in the Graph 1,

  • The Larix_distribution_for_supplier is increases from 0%-50% as the utilization increases.
  • The Larix_distribution_for_borrower decreases from 100%-50% as the utilization increases.
  • At this point, borrower will share more percentage of mining rewards than supplier.
The purpose of this is to encourage users to borrow from Larix when the utilization is less than 50%.

3, When ‘Utilization Rate=50%’, which is located at red point in the Graph 1,

  • The Larix_distribution_for_supplier is 50%.
  • The Larix_distribution_for_borrower is 50%.
  • At this point, suppliers and borrowers will have same percentage of LARIX distribution rewards. The purpose of this is to encourage the market to maintain the utilization when the utilization is 50%.

4, When ‘50%<Utilization Rate<100%’, which is located between the blue point and the red point in the Graph 1,

  • the Larix_distribution_for_supplier is increasing from 51%-100% as the utilization increases.
  • the Larix_distribution_for_borrower is decreasing from 49%-0% as the utilization increases.
  • At this point, suppliers will share more percentage of mining rewards than borrowers.
The purpose of this is to encourage users to deposit on Larix when the utilization is more than 50%.

5) When ‘Utilization Rate = 100%’, which is located at red point in the Graph 1,

  • The Larix_distribution_for_supplier is 100%.
  • The Larix_distribution_for_borrower is 0%.
  • At this point, suppliers will share all of mining rewards.
The purpose of this is to encourage users to deposit and provide liquidity to the supply pool and repay debts since the pool experiences a drop in liquidity when utilization is 100%.

User Distribution

1, Y1=Larix distribution for each user in supply market:
2, Y2=Larix distribution for each user in borrow market:
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Parameters
Formulas
Variations
User Distribution