vAZKA Murabaha Eligibility

Eligibility Requirement

AZKA dLP holders need to be eligible in order to receive eAZKA rewards for any Murabaha Pool deposits or debts. They need to maintain eligibility at all times to continue receiving vAZKA rewards. For those users that have existing deposits/debts and no dLP, they can initiate a dLP position upon which, any and all deposits/debts will become eligible providing they meet the eligibility criteria.

To trigger eAZKA emissions on Murabaha pool deposits and debts, the 'Virtual USD Value' of your dLP must be at least equal to the Threshold % of your total deposit/debts (in USD) for a specific Murabaha pool.

$$\text{dLP}_{\text{vUSD}} \geq \left( \text{Total USD Value of Users azPool}_{(i)} \text{ deposits or debts} \right) \times \text{Threshold} \$$

The dLP Multiplier feature enhances the 'Virtual USD Value' of a user's AZKA/ETH LP stake. For instance, assuming the Threshold Percentage is 5%, if a user has $100K in deposits or debts in the azUSDC pool and allocates $1K to the AZKA/ETH Uniswap LP, their base LP value in USD is 1% of their azUSDC deposits/debts. Locking the LP tokens for 4 weeks would result in the users 'Virtual USD Value' being equal to their underlying LP value (as the the multiplier is only 1). This would be less than the $5000 threshold required for the user. However, by locking their LP tokens for up to 52 weeks, they can apply a 20x Multiplier, elevating their dLP's 'Virtual USD Value' to 20,000 USD, which is 20% of their azUSDC pool involvement.

Formulas and considerations for 'Virtual USD Value' of dLP

At any given point in time the 'Virtual USD Value' of a users dLP can be calculated as follows:

$\text{dLP}_{\text{vUSD}} = \left( \frac{\text{dLP}_{\text{user}}}{\text{Staked LP}_{\text{user}}} \right) \times \left( (\text{AZKA}_{\text{USD}} \times \text{AZKA}_{\text{LP}}) + (\text{ETH}_{\text{USD}} \times \text{ETH}_{\text{LP}}) \right)$

The AZKAusd and ETHusd variables represent the USD prices of both AZKA and ETH respectively.

The AZKA-LP and ETH-LP variables represent the amount of AZKA and ETH the user has in their underlying LP position.

It is important to note that the USD value of a users AZKA/ETH LP position can fluctuate with market dynamics and the users dLP multiplier decreases linearly until it reaches 0 at the end of the users stake period. Hence, the users dLP divided by their staked LP tokens will generate the multiplier at any given point in time.