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DASHBOARD (BOOSTS Practice guide)
Now that you have a theoretical understanding of BOOSTS, let’s dive into how you can acquire them practically. All the features you need to harness these BOOSTS are conveniently located in a single dashboard.
This area contains essential statistics such as:
- TOTAL ASX LIQUIDITY: Displaying current liquidity data for ASX in both official pools (Uniswap & Balancer).
- MY ASX LIQUIDITY: Here, you'll find details about the liquidity you've provided, such as its USD equivalent value, your share in the overall liquidity, and the Liquidity-to-Deposit Ratio—a critical factor that determines your BOOST size.
By default, BOOSTS are inactive for each user until they add liquidity positions in one of the two liquidity protocols and lock it for some period of time. Once activated, progress bars appear in this section showing your active BOOSTS and their values. A handy button sets optimal liquidity locking values, helping you achieve maximum BOOSTS with minimum effort.
This is the main area for providing and locking your liquidity. It's a 3-step process:
- 1.SELECT LIQUIDITY POOL:
- Choose the protocol where you'll provide liquidity (Balancer or Uniswap v3).
- Manually input the amount of assets or indicate a percentage of your Asymetrix deposit (Liquidity-to-Deposit ratio). Or choose one of the presets (10%/20%/30%). The minimum Liquidity-to-Deposit for getting BOOSTS is 10%. The maximum required Liquidity-to-Deposit ratio is 30%.
Remember, that In Balancer, assets should be contributed in a 20% ETH, 80% ASX ratio. In Uniswap v3, it’s a 50% ETH, 50% ASX ratio.
- 1.Select Locking Period:
- The minimum locking period is one week, and the maximum is 30 weeks.
- 3.Confirmation Window:
- This is where the size of your potential boosts will be calculated and displayed based on your chosen parameters. Confirm your choices and lock your position by pressing 'ADD LIQUIDITY AND LOCK'
Please keep in mind that there are some risks when locking up liquidity equals 10% of your deposit. This is because the value of your liquidity position can decrease. When you're providing liquidity, you're involving two tokens: ASX and ETH. If the price of ASX drops, the dollar equivalent of your position can decrease as well. For example, if today your locked liquidity position is worth $100 with a total deposit in the system of $1000, your LTD is 10%. But if the price of ASX drops tomorrow and your position is now worth $90 with the same $1000 deposit, your LTD becomes 9%. This results in two negatives:
- Since your LTD falls below the required 10%, your BOOSTS will automatically be deactivated.
- All esASX you've farmed with BOOST but haven't claimed can be claimed (buy with a discount option) by other users. This applies only to esASX that were farmed with an active BOOST. esASX tokens earned without a BOOST cannot be liquidated.
Therefore, we strongly recommend providing and locking liquidity in such a way that your LTD remains above 10%. This can protect you from a situation where, due to a decrease in the value of your position, your LTD drops below 10%. To achieve this, you can either add another position (since LTD ratios are cumulative) or initially create a position with a buffer.
Users will only receive BOOSTS if they add liquidity from the same address they used for depositing into the protocol.
Also, BOOSTS are available exclusively when the user has provided liquidity and has a stETH deposit in the protocol.
After you lock a position, a list of all your provided liquidity positions will appear here. A user can add multiple positions to the liquidity pool. Each position will be displayed as a separate line. When the locking period ends, you'll have the option to extend the lock for continued boosts or a button to withdraw your position back to your address.
How is the BOOST Calculated for Multiple Positions? As you may recall, two factors are used to calculate the BOOST: the Liquidity-to-Deposit Ratio (LTD) and the Lock period. Here's how they're determined when a user has multiple liquidity positions. Let's check on a particular example. Imagine you have 3 liquidity positions:
7% of your deposit with an 8 weeks lock. 10% of your deposit with a 15 weeks lock. 3% of your deposit with a 30 weeks lock.
User LTD is simply calculated by adding them together. In this case, 7% + 10% + 3% = 20%.
In the case of Multiple Positions, the average Lock period is used to prevent cheating the system. In our example, the formula for three positions looks like this. You can extrapolate this formula for any number of positions you might have.
For our example, this becomes: User Average Lock Period = 8 x (7/20) + 15 x (10/20) + 30 x (3/20) = 14,8 weeks.