Solidly's LP Boosting Explained
Explanation of the Solidly LP Boosting Mechanism
LP pools on Solidly have a base of 1.0x boost up to a max of 2.5x, based on certain factors such as your NFT (veSOLID) size, and the amount of LP staked in proportion to the total pool. This means that the effective range of APRs is (1->2.5x), or more accurately (0.4x->1x).
Staking under Monolith's large veSOLID NFT allows you to comfortably earn un-diluted yield from the Solidly pools, whereas you would be earning the low end of APRs otherwise.
Boost Formula (ultra-simplified) is as such:
A more detailed and comprehensive form of the boost formula can be seen below:
Where: - user = LP amount the user has deposited - lp total = Total LP staked - user locked = user's locked SOLID (veSOLID) - total locked = total locked SOLID (veSOLID)