Calculations
To assess the scalability and economic security of the protocol, we made necessary calculations regarding several points. Here's the link: https://docs.google.com/spreadsheets/d/1fKvmTz3vYAQP35cH1Pa8dSUD1NCOTEIQO5vLijqiXHI/edit#gid=1189649717 Thoughts on the calculations:
xAVAX Leverage: The data shows that most of the time the effective leverage of xAVAX will range between 1.5x and 2x.
Stability Mechanism: The data show that our mechanism would not face any significant economic risk that can be caused by the price volatility of AVAX.
aUSD Yield Calculation: aUSD yield will be a huge catalyst for the growth and scalability of the protocol. This data shows that we can have consistent and sustainable real yield for the aUSD holders. It will range between 12-15%.
Open Interest-Long/Short Ratio/Funding Rate: This shows that there is a strong demand for long AVAX during every cycle of the market. Even though most think that people will be hesitant to long AVAX during the bear, this is not the case.
xAVAX Leverage: Total Value of sAVAX in the protocol/Total Market Cap of xAVAX
xAVAX Price: (Total Value of sAVAX in the protocol - aUSD Market Cap) / Amount of xAVAX in circulation
aUSD Price: If CR>100, then aUSD is $1, if CR<100, then aUSD = Total Value of sAVAX in the protocol/Amount of aUSD in circulation aUSD CR: (aUSD Market Cap/Total Value of sAVAX in the protocol) * 100 aUSD APR: (Total Value of sAVAX in the protocol * sAVAX APR/The value in Rebalance Pool) * 90% The change in the sAVAX/AVAX exchange rate isn’t exactly consistent over a short period but is in fact consistent over a long period. Thus, there may be fluctuations in short-term return but it is consistent in the long term.
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