Plus Deposit works in a way that it helps users deposit pairs by utilizing additional assets from a single deposit pool. Plus depositors will have the leveraging effect of utilizing two to three times as much as their assets, allowing them to earn much more rewards than they would have received in the existing pair deposits. This profit generation with maximized capital efficiency is viable due to active utilization of a single deposit pool. Plus depositors utilize assets from single deposit pools on a larger scale in addition to their assets in hand, earning more of various kinds of rewards(KSP, airdrop tokens) generated from pools.
Higher earning rate
Plus depositors are required to pay an interest fee for single pool asset utilization, but with earnings 2 to 3 times higher than depositing in existing pair deposits, they are able to earn more profit than before even after paying interest fees.
Unrestricted asset deposit
Plus depositors are not bound by the current exchange ratio(price) of two assets when depositing. The reason why it is possible to use a plus deposit system with just one asset is that smart contracts automatically swap and deposit their assets in pairs with an optimal ratio.
Determination of Plus Deposit volume
Users can freely choose the scale of the Plus Deposit through "plus multiplier." Assume that you choose 2.5x, you can deposit 2.5 times more than the amount you are willing to deposit at the moment. If you choose 1.0x, assets currently in your possession will only get deposited without utilizing additional assets from other pools, which is the same as an existing pair deposit. (ex) If a user of “KLAY+USDT pair” deposits 100KLAY+200 USDT and select 2.5x plus (1KLAY=2.0 USDT, fees not reflected) → Volume of asset willing to deposit = 100 KLAY +200 USDT = $400 → Total volume of your Plus Deposit = $400*2.5 = $1,000 → Utilized = $1000- $400 = $600
Choice of a single pool asset utilized
The amount of additional assets that users are trying to deposit aside from assets already in their possession are borrowed from a single pool. Depending on a plus multiplier and the assets that users want to deposit, smart contracts directly deposit assets from a single pool into a pair without swapping, or swap a certain ratio to bundle pair deposits with optimal strategies. Assets borrowed from a single pool are must be returned at the end of the Plus Deposit (withdrawal), and not only assets with some level of variability (KLAY, ETH, XRP, KSP) but also stable assets with little price fluctuations (USDT, USDC) can be utilized in order to pursue more stable returns.
(Ex) In case where Plus Depositors of KLAY+USDT deposit 100KLAY+200 USDT with plus multiplier of 2.5x, and choose an utilization of USDT (1KLAY=2.0 USDT, fees not reflected) → Asset utilized = $600 → Asset subject to utilization for $600 = 600 USDT → Maximum possible pair with 600 USDT = 150 KLAY + 300 USDT → Total value deposited = 100 KLAY+200 USDT (My asset) + 150 KLAY+300 USDT (plus asset)= 250 KLAY+500 USDT
The number of assets available will gradually expand, and slippage will be fixed at an intial rate of 1.0%. (Individual settings will later be supported)
Simple closure settings for Plus Deposit (Withdrawal)
The process for a withdrawal (closure) of plus deposit assets is not so much different than existing pair deposit withdrawal process, so it is simple. If you enter the amount to be withdrawn based on the total amount of LP Token you currently possess, the assets utilized will be returned by priority as LP assets corresponding to plus assets are withdrawn. When utilized asset are returned as LP assets corresponding to plus assets are entirely withdrawn, and after that, the rest of asset is withdrawable to users’ personal wallets. Once all LP assets corresponding to plus assets are withdrawn and the utilized assets are returned, all remaining assets can be withdrawn into the user's wallet. The quantity corresponding to the "plus asset" on the "withdrawal" tab is the quantity of LP Token required to return the assets currently in use, and the plus deposit ends when the entire quantity is requested to be withdrawn. If you withdraw some of your assets, you can manage your assets safely by returning some of the assets currently in use.
(Ex) When possessing 100 LP Token 100, my asset 40, plus asset 60 in case of Total asset deposited 250 KLAY+500 USDT / Asset utilized 600 USDT (1KLAY=2.0 USDT, fees not reflected)
When a user enters a quantity less than or equal to the amount of plus asset (60 in this case), the assets utilized will be returned by priority as the amount of plus asset (60) is withdrawn. → When withdrawing 50 LP Token, Corresponding amount of 125 KLAY + 250 KLAY are withdrawn → Withdrawing 600 USDT with 125 KLAY + 250 USDT 1) Rest of utilized asset after returning 250 USDT: 350 USDT 2) Rest of utilized asset after converting 125 KLAY > 250 USDT : 100 USDT → After withdrawal is complete, Total asset deposited 125 KLAY + 250 USDT / Asset utilized 100 USDT
If the amount plus asset is 0, it means that all the assets currently in use have been returned. All amounts entered and withdrawn from that point will be withdrawn to the user's wallet.
Managing asset utilization rate
Utilization rate refers to the ratio of amount of asset utilized to the total assets deposited. Plus deposit users should always be careful not to exceed 85% of asset utilization for safe asset management. In the event of volatile price fluctuations of assets, plus depositors might have difficulty returning the amount asset they were utilizing if this rate exceeds around 85%. Therefore, if the asset utilization rate exceeds 85%, the protocol automatically returns the user's total assets deposited, and users can receive the amount of asset except for the return fee (20%) after the return is completed.
To prevent automatic return, 1) withdraw some portion or full amount of LP Token (corresponding to "plus assets") in the withdrawal tab, or 2) lower the asset utilization ratio by depositing additional assets with a low plus multiplier. Please be careful not to exceed 85% of the asset utilization ratio.
The management and automatic return of asset utilization rates are for protocol stability and smooth utilization of assets by plus deposit users. Supply of single pool assets can be activated when single depositors trust the system and deposit more of their assets only if an utilized asset from a single pool is safely returned. In addition, if the supply of single-pool assets increases, plus depositors can utilize their assets at a lower cost (%), resulting in greater returns. To this end, a safety fund will be created separately by accumulating a return fee (20%) from users whose assets have auto-returned, and if the assets used in a single deposit cannot be returned due to rapid token price fluctuations, the return will proceed by using the fund.