⚖️Liquidity Deployment

Liquidity being deployed to exchanges will depend on various factors to ensure proper collateralization in pools as well balanced pairing of assets.

If liquidity is provided to Joe/USDC pair , here Joe is the Base asset and USDC is the Quote asset .

Parameters that determine the deployment logic

1) Quantity of asset in PCA reserve - Do not deploy more than 3x (Alpha) the quantity available in reserve.

2) Base asset in pool available to pair with quote asset - If quote asset is not sufficient to pair with all base assets , it will be proportionately distributed across pools.

3) DLQ staked in the pool - DLQ staked + Reserve of Joe = LP Sushi . Which means at least 2/3rd of the value of asset in pool should be staked by LDs.

Equations and logic.

1) Based on qty asset in PCA -

• (ABC_inPCA) = QTY of asset in Reserve .

• (Alpha) = Reserve multiple

• (ABC_LP) = QTY of asset in pool .

• (ABC_deployable) = QTY of asset that can be deployed .

$$IF \space ABC_{inPCA} \times Alpha \geq ABC_{LP} \newline THEN \space LP_{ABC_{deployable1}} = ABC_{LP} \newline IF \space ABC_{inPCA} \space \times \space Alpha \leq ABC_{LP} \newline THEN \space LP_{ABC_{deployable1}} \space = ABC_{inPCA} \times Alpha$$

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2) Based on quote asset available to pair -

If the qty of quote asset available to pair isn't enough , the quote asset will be pro rata distributed across the pools.

$$IF \space LPquote_{deployable1} \geq SumAssets_{deployable1} \newline THEN \space Quote_{pairable} = 1 \newline IF \space LPquote_{deployable1} < SumAssets_{deployable1}\newline THEN \space Quote_{pairable}= LPquote_{deployable1}\space \div SumAssets_{deployable1}\newline \rightarrow LP_{ABC_{deployable1}} \times Quote_{pairable}= LP_{ABC_{deployable2}}$$

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