Mining

Note: The previous mining option on dego.finance is no longer available. The new pool is live on deltahub.pro

Yield Farming has recently been the focus of interest and discussion in the broader crypto community, initiating a new era for DeFi via liquidity mining.

The popular formulas of current liquidity mining are:

Daily output per user = Daily output of the mining pool * Staked amount/Total staked amount

Under this model, the whales become the top winners, they can easily take away nearly all liquidity rewards and irrational sellout their yield. And this is a harsh predatory game for shrimps. With the rise of yield farming, whales are the most common concern for DeFi farmers.

To solve this problem and toward a more sustainable ecosystem of DeFi, we create the Liquidity Mining with algorithmic adjusted.

Mining Power

In DEGO, we used a set of deterministic algorithms for liquidity mining, convert the LP token staked by users into POWER (similar to the hashrate of Bitcoin mining), and getting earnings through them. Under this model:

Daily output per user = Daily output of the mining pool * POWER / Total POWER
POWER = Staked LP token amount * Coefficient of correspondence

Calculation Formula of POWER

We divide users into three ranges according to their staked amount:

a) Worst range: users with the most staked amount = 1 time rewards
b) Best range: users with the intermediate staked amount = 5 times rewards
c) Common range: users with the smallest staked amount = 3 times rewards

For example, User A staked 10 LP Tokens and is currently in the common range, then his POWER is 10 * 3 = 30 POWER

Initial Three Ranges

The numbers of the initial three ranges are [10, 10, total number-20]. As the total number of users increases by 100 people, the worst range and the best, range increase by 10 slots, up to a maximum of 50 people.

Total Number of Users	Worst	Best	Common
50	10	10	30
101	20	20	61
200	30	30	140
300	40	40	220
400	50 max	50 max	300
1000	50 max	50 max	900

If tokens staked for minng stay "staked" for less than 72 hrs, 10% of the rewards are deducted if you choose to Harvest then the deducted rewards will be transfered to the Dividend Pool.
Mining Production halved in every 7 days.