Working Supply

The variables to consider when calculating working supply and veBAL incentives boosting are the following:

• The Liquidity you will provide and stake: l

• The staked liquidity in the pool before you deposit and stake: L

• The liquidity in the pool after your deposit and stake: L' = L + l

• The total veHLDR in circulation

• The amount of veHLDR you hold

The liquidity in terms of how much veHLDR correlates to it what is called a working supply. The working supply can range from 40% to 100% of a user’s staked liquidity position. This is the main theory behind how incentives are boosted and distributed. The equation below defines a user’s working supply. (see variable list here)

If a user owns no veHLDR use the following equation:

$$Non-boosted \ working \ supply_{user} \ = \ 0.4 \ * \ l$$

Actual working supply adds the veHLDR dependent term for 60% of incentives boosting to become available.

$$working \ supply_{user} = min \bigg(0.4 * l \ + \ 0.6*L' * \frac{veHLDR \ Held}{Total \ veHLDR} \ , \ liquidity \ provided \ (l) \bigg)$$

• The minimum function ensures a user cannot receive a boost over 2.5x

The maximum working supply possible is defined as the following:

$$max \ working \ supply_{user} = 0.4l +0.6 * L'\frac{min \ veHLDR_{max \ boost}}{Total \ veHLDR}$$

• Please note a users working supply will not impact the pools total working supply beyond this point.