LP Management

Every time $rDPX and $ETH is bonded, single-sided $rDPX liquidity will be removed from the rDPX/ETH Permissioned AMM. This sets a new rDPX/ETH ratio before the newly bonded PoL is deployed.
The amount of $rDPX liquidity to be removed is given by the following formula:
rDPXReLPAmount=LPTokensToBondrDPXSupply×rDPXinLP×BaseLPPercentrDPXReLPAmount= \frac{LP Tokens ToBond}{rDPXSupply} \times rDPXinLP\times Base LP Percent
BaseLPPercent=TreasuryrDPXReserves×reLPFactorBaseLPPercent = \sqrt{Treasury rDPX Reserves} \times reLP Factor
During bonding, rDPXReLPAmount number of $rDPX is removed from the liquidity pool and added to the v2 Treasury, creating a new rDPX/ETH ratio. The bonded $rDPX will then be paired 50:50 with $ETH according to the new ratio and added to the rDPX/ETH Permissioned AMM.
The net effect of LP management is three-fold:
  1. 1.
    Increase the ratio of rDPX/ETH in the AMM
  2. 2.
    Reduce the circulating supply of $rDPX which is added to the v2 treasury
  3. 3.
    Deepen the liquidity of rDPX/ETH on our permissioned AMM