shoMESH/MESH LP
LP token representing shoMESH-MESH liquidity pool
shoMESH/MESH LP is a critical part of Shogun Protocol as shoMESH/MESH Liquidity Pool provides instant liquidity to shoMESH holders, while benefiting from the boosted yield of staked MESH that Shogun Protocol provides.
When shoMESH is cheaper than MESH, users can purchase shoMESH rather than minting shoMESH, contributing to the shoMESH/MESH peg. The attractiveness of shoMESH will be a factor contributing to the peg.
To improve liquidity for shoMESH holders, Shogun Protocol will be incentivizing shoMESH/MESH LP providers. In order to minimize sell pressure on SHO, two reward pools are operated : base pool and boost pool.
Initial SHO allocation for base:boost pool is 40:60, the pool weight may be adjust by Shogun Governance
Base Pool
Base pool serves as a general reward for the users who provide shoMESH/MESH liquidity regardless of their vxSHO positions. Base pool rewards will be distributed as following
Boost Pool
Boost Pool considers both deposited shoMESH/MESH LP tokens and accrued vxSHO. The concept is to direct greater rewards towards more loyal stakers to the protocol, which will be reflected by number of vxSHO they hold. Boost pool rewards will be distributed as following
Deposit weight is calculated as following
Total Return and APR
For each user, their total shoMESH/MESH LP farm APR would be as following
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