Goat Ratio and Dynamic Emission System
Welcome back to Cashmere Labs. This article will give insight into the CSM token’s Goat Ratio and dynamic Emission system. The team is proud to show you this glamorous information, commencing with the emission mechanism and ending with The Goat Ratio.
Before moving on to the emission system, it should be better to discuss the basic pool and the boosted pool system.
As Cashmere Labs, unlike previous-generation liquidity pools, pool composition and pool size will not impact single-sided token deposit and withdrawal, even in bulk. As a result, it is ensured that new tokens are added or removed from the main pool naturally, providing 100 percent exposure to single-asset usage.
Cashmere delivers its native token CSM through two different pools: Basic Pool and Boosted Pool, which fluxional accounts for aggregate allocation.
Basic Emission
Basic emission only includes 70% of platform trading fees. It will be distributed to all users providing liquidity with no additional requirements.
Boosted Emission
By locking CSM tokens to get veCSM, depositors can get additional CSM tokens via liquidity mining from the Boosting Pool. Besides CSM tokens, 30% of trading fees will be distributed to veCSM holders.
The Boosting Pool is used for a variety of purposes:
- To lock CSM to receive a share of platform fees as a stablecoin.
- To vote gauge weights.
- To vote for DAO Proposals
- To boost LP Rewards.
- To decrease CSM’s circulating supply.
- To lock CSMs and decrease selling pressure.
- To link the farming of TVL to the staked token.
- To encourage long-term staking.
- To make CSM token a desirable X factor.
- To be decentralized relayer
The Boosting Pool uses a new token called voting escrow CSM (veCSM); what is the mechanism behind it? Take a look at the veCSM qualities listed below:
- Due to the smart contract design, veCSM tokens are non-transferable and non-tradable, which means they will be locked in the user’s private wallet.
- In other words, voting is weighted by quantity and time, where the time that counts is how long the tokens will not be able to be moved in the future.
- veCSM reduces to 0 when CSM is unlocked
Now, things are mixed up, leading to the introduction of a new concept. GOAT RATIO!
What is Goat Ratio?
The Goat Ratio is a minting parameter prepared by Cashmere Labs technical team. It has a decreasing trend over the years. Commence from 50(%) on the first day, reduces to 4(%) day-by-day until the 4th year, and continues at a constant 4(%) for the years after the 4th year.
The Goat Ratio formula is as follows:
Goat Ratio Formula
Parameters c, b, and a were determined by the team and are -1077, 14, and 245, respectively. x defines the year.
The Goat Ratio graphic is as follows:
Graphic of Goat Ratio
The primary purpose of the Goat Ratio is to provide a more balanced distribution of emissions over the years. It is also to soften the inflation created by the emissions.
As mentioned before, the Goat Ratio is a parameter, and this is where things become more attractive.
Dynamic Emission System
With the emission system created, the minted CSM rate per second differs according to the locked CSM rate of the users and the locking time.
When the amount of CSM locked by each user is divided by the time it is closed, we have another parameter, and let’s define this parameter as U. The U-sum of all users gives us the U-total. When we multiply this value with the goat ratio, we get the csmPerSecond value.
The U-total formula is as follows:
U-total formula
_csmPerSecond formula is as follows:
As a result of all these processes, the emission system is renewed uniquely. The dynamic emission system will enable all users within the CashmereLabs to affect the parameters and the emission. Therefore, the minting system, which has a decentralized dynamic structure, will work without protocol and team decisions. Why not #CashmereWars, while the pursuit of decentralization continues?
Getting closer to the end, the allocation distributions, ladies and gentlemen. To increase and promote liquidity for the first six months, the emission distributions between the basic pool and the boosted pool will start equally. However, after six months, basic pool users will only receive trading fee rewards, while boosted pool users will receive trading fees + 100% CSM emissions.
