BIPS Calculation Example

Examples:

  • Scenario 1:

    • Lock vlSYNO (>5% of Supplied Assets)

    • Supplied to the Market

    • Outcome: Earn Supply/ Borrow BIPS and vlSYNO BIPS

  • Scenario 2:

    • Lock vlSYNO

    • Nothing supplied on the market

    • Outcome: Earn vlSYNO BIPS

  • Scenario 3:

    • No vlSYNO Lock or Locked <5% of supplied assets

    • Supplied to the Market

    • Outcome: Earn only Supply/Borrow BIPS

Practical Example:

  • User A deposits $100 OP tokens and borrows $50 USDC. He doesn't have any vlSYNO.

  • This user is earning 100 BIPS per deposit per day and 300 BIPS per borrow per day, as USDC is boosted.

    • He is eligible for SYNO Emissions and his pro-rata allocation of ecosystem airdrops.

  • He decides to boost his BIPS with vlSYNO. He locks $10 into vlSYNO.

    • At the current prices, $10 = 40 LP Tokens. Furthermore, he decides to lock it for 12 months, getting a multiplier of 25x. This means he is getting 1000 vlSYNO (40 LP Tokens X 25). Currently vlSYNO receives 0.5 BIPS per vlSYNO per Day, meaning the user is eligible for additional 500 BIPS per day.

  • In total the user receives 900 BIPS per day.

    • With vlSYNO locked, he not only boosted his BIPS position but also is now eligible for governance and fees distribution.

PreviousBIPSNextSynonym Tokenomics

Last updated