The amount of $rDPX liquidity to be removed is given by the following formula:
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.Increase the ratio of rDPX/ETH in the AMM
- 2.Reduce the circulating supply of $rDPX which is added to the v2 treasury
- 3.Deepen the liquidity of rDPX/ETH on our permissioned AMM