How veHLDR Boosting Works

As opposed to the initial liquidity mining incentives where a liquidity provider receives incentives based only on their share of the total liquidity, the veHLDR system implements a multiplier based upon the time locking mechanism. Locking the same amount of HLDR for a longer period will yield a higher incentive multiplier for a user.

Original Liquidity Mining:

$$HLDR \ Mined \ = \ Pool's \ Total \ Incentives \ * \frac{HPT \ Held}{Total \ HPT}$$

veHLDR Liquidity Mining:

$$\\ \\\ \\ HLDR \ Mined \ = \ Pool's \ Total \ Incenvites \ * \ \frac{0.4 \ * \ HPT \ Staked \ * \ Boost}{Total \ Working \ Supply}$$

Please note the maximum boost possible for liquidity mining incentives is 2.5x. For tooling, calculate your boost here.

The boosting mechanism theory is visualized by the graphic below. The fraction of a pool's working supply a user owns is based on upon their share of the respective pool, and their share of total veHLDR. Continue reading through this boosting sections for further information on the working supply.

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View Graphic Equations here

Based upon this mechanism locking the same number of tokens for twice as long will result in twice the veHLDR a user receives. The boosting proportion and governance voting are directly coupled with veHLDR, however only governance is directly proportional.