k, was initially set to 0.5, but beginning in week 8 (July 20th 00:00 UTC), the community approved a proposal to to change
kto 0.25 in order to ease the penalty for higher-fee pools. This creates the following bell-shaped curve for feeFactor, which means, for example, that a pool with a 0.5% fee has a feeFactor of ~0.98, a pool with a 1% fee has a feeFactor of ~0.94, and a pool with a 2% fee has a feeFactor of ~0.78:
ratioFactor. Since pools that are imbalanced contribute less to trading volume (because the slippage is higher), the community approved a proposal to add a ratioFactor. This way highly imbalanced pools (such as those with 98%/2% weights) have a much lower weight in the final BAL distribution.
wrapFactor. Since pools containing pairs of tokens that have a hard peg (e.g. DAI and cDAI) do not contribute much trading volume (because traders can wrap DAI for cDAI and vice-versa), the community approved a proposal to add a wrapFactor. This way, liquidity in such pairs (like cETH/ WETH) has a 0.1 wrapFactor (i.e. counts 10 times less than for other regular pairs), reducing the amount of BAL received by their liquidity providers. In week 8 (starting July 20th 00:00 UTC), the community approved a proposal to add a wrapFactor for soft pegged pairs (initially set at 0.7, later reduced to 0.2).A soft pegged pair is one in which the two assets are not directly convertible, but they do track the same underlying asset's price by design. Examples include a pair of USD stable coins (e.g. DAI and USDC) or a synthetic paired with its real-world asset (e.g. sETH and WETH).
capFactorhas been proposed, which is calculated such that every capped token is limited to a maximum of $10M in adjusted liquidity.
capFactoris then applied to the liquidity of each affected capped token, resulting in an adjusted liquidity for every pool containing those tokens.
ETH, DAI, USDC, WBTC, BALis the list of uncapped tokens. Please read the proposal linked above for further details and examples.
L2) if a
3were to be applied to liquidity in pairs formed by BAL and an uncapped token
stakingBoostthat would be required in order for 45k of the 145k BAL weekly mined to be awarded exclusively to liquidity providers in BAL+uncapped_tokens pairs.
stakingBoost = 1 + 0.9 * L1 / (L2 - L1)
capFactorabove) liquidity USD value that each liquidity provider has in the pool, including the final
stakingBoostcomputed in the previous step. The table below shows an example for a pool that has 100$ worth of liquidity (already adjusted by all factors):
"homestead"list in the json file linked are eligible. This list will evolve over time with input from the community.