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RE: The X-Factor, APR and Your Piece of the Pie

in LeoFinance4 years ago

How did the X-factor get decided for each farm/den?

My understanding is that these were determined by the Leo team to attempt to incentivize more liquidity in pools that would be the most useful for the platform overall... notably, BUSD and BNB pairings have high multipliers since these are native tokens of Binance Smart Chain, and it's good to be prepared if/when other DeFi "Degens" start swarming in with those tokens... it will be easy to switch those into CUB without creating much price slippage.

About all the other multipliers, I'm not sure about the exact reasoning, but I do know the recent adjustments to the farms/dens including removing many of them was partially done to increase the CUB den's APR since some other dens had a higher yield and didn't really benefit CUB too much directly.

Maybe others, wiser than me can weigh in on it? :-P

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My understanding is that these were determined by the Leo team to attempt to incentivize more liquidity in pools that would be the most useful for the platform overall

Makes sense. Judgements on what benefits the system overall sounds right. Native BSC tokens, makes sense too. Thanks for the comment :)

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