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Redemption Capacity Function

Definitions
Variable
Definition
​Ξ\LARGE\XiΞ
​
ETH
​ξ\Large\xiξ
​
ETHtx, native weiWard token
​P\Large PP
​
Price of ETH gas ; Ξgas\LARGE \frac{\Xi}{\text{gas}}gasΞ​
​
​C\Large CC
​
Collateral Ratio ; Ξ on AMMξ off AMM\LARGE\frac{\Xi_{\text{ on AMM}}}{\xi_{\text{ off AMM}}}ξ off AMM​Ξ on AMM​​
​
​γ\Large \gammaγ
​
ETHtx Scalar Quantity ; 21,000 gasξ\LARGE\frac{\text{gas}}{\xi}ξgas​
​
​ψ\LARGE\psiψ
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DEX Shield ; 0.925 ; 7.5% redemption fee, consistent with transaction fees
Relations
One ETHtx (ξ) represents 21k gas (γ). ETHtx may be converted into ETH (Ξ) using the gas price (P):
Ξ=γξP\LARGE{\Xi = \gamma \xi P}Ξ=γξP
When redeeming ETHtx, a realized gas price can be calculated from the amount of ETH received (Ξout) after redeeming an amount of ETHtx (ξin):
Ξ inξ out=γP\LARGE\frac{\Xi_{\text{ in}}}{\xi_{\text{ out}}} = \gamma Pξ out​Ξ in​​=γP
The collateral ratio (C) may be calculated by comparing the contract’s ETH supply (Ξ on AMM) to the contract’s ETHtx supply (ξ outstanding):
C=Ξ on AMMγξ oustandingPcurrent\LARGE C = \frac{\Xi_{\text{ on AMM}}}{\gamma \xi_{\text{ oustanding}}P_{\text{current}}}C=γξ oustanding​Pcurrent​Ξ on AMM​​
Redemption Capacity Function
Ξ outξ in={ψγPcurrentC>1ψγPCC=1\LARGE \frac{\Xi_{\text{ out}}}{\xi_{\text{ in}}} = \begin{cases} \psi\gamma P_{\text{current}} & C > 1 \\ \psi\gamma P_{C} & C = 1 \end{cases}ξ in​Ξ out​​=⎩⎨⎧​ψγPcurrent​ψγPC​​C>1C=1​
Graphical Representation
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ETHmx and ETHtx Minting Functions

Last modified 2yr ago

Variable	Definition
$\LARGE\Xi$	ETH
$\Large\xi$	ETHtx, native weiWard token
$\Large P$	Price of ETH gas ; $\LARGE \frac{\Xi}{\text{gas}}$
$\Large C$	Collateral Ratio ; $\LARGE\frac{\Xi_{\text{ on AMM}}}{\xi_{\text{ off AMM}}}$
$\Large \gamma$	ETHtx Scalar Quantity ; 21,000 $\LARGE\frac{\text{gas}}{\xi}$
$\LARGE\psi$	DEX Shield ; 0.925 ; 7.5% redemption fee, consistent with transaction fees