Detailed policy of Plus Deposit
Price Oracle
Price criteria related to the calculation of the plus size available when depositing assets and automatic return based on the asset utilization rate are measured and applied through Price Oracle. (Different from the pool exchange ratio)
Stable coins are calculated as fixed values ($1.0).
Determination of value for other coins, considering scale of liquidity of each asset, are based on the median value of the price of central exchanges such as Binance, Upbit, Bithumb, Coinone, Huobi, and gateio, and pool exchange ratio (price) in KLAYSwap.
Yield rate, cost, Expected returns
Degree of returns (%) and utilization costs (%) can vary depending on the real-time status of the pair deposit pool and the single deposit pool.
The total expected return on the plus deposit is calculated as (total annual return-total annual cost). The total annual rate of return(APR) includes KSP distribution rate of return and rate of return of airdrop, and the total annual cost refers to the cost of utilizing assets by plus deposit users.
KSP distribution rate of return (%) and Airdrop rate of return (%) refer to the annual rate of return (APR) expected to be obtained from KSP and Airdrop tokens distributed from the pool.
Utilization cost (%) refers to the interest rate (APR) that takes the annual interest cost to be paid when utilizing assets in a single pool into account when using Plus Deposit.
All figures are real-time estimates and may differ from the actual rate.
Deposit policy
Users can directly enter and deposit any amount of asset under the current exchange ratio (price) or free rate of the pool.
Users can choose how much additional assets they are willing to utilize in dollar value through the plus multiplier settings. Additional assets will be utilized by the size of (value in dollars of deposited assets) * (selected plus multiplier -1).
For additional asset input, the user can choose which asset to utilize. The selected asset is borrowed from a single pool, and the user must return the amount of utilized asset, including interest fee accumulated according to the real-time utilization cost (%) of the utilized asset. The larger the plus multiplier, the more assets you get to utilize and pay for interest fees.
Depending on the amount of user's deposited assets, selected plus multiplier and type of utilized assets, a certain percentage of your asset is automatically swapped (traded) to deposit the pair at an optimal ratio. In cases where swap is required, it takes a direct single swap pass between the pair, incurring a corresponding transaction cost. Transaction fees follow the corresponding transaction fee rate by pools. (For example, if you need a swap during the plus deposit process of the KLAY + KSP pair, an exchange between KLAY <> KSP will occur, and the transaction fee rate of the pool will be applied.)
The larger the transaction, the more influential it affects the exchange ratio between tokens in the pool, which can make a difference between the current price and the price applied when exchanging(Price impact). If you run it with small quantities several times, you can reduce its influence.
Fair deposits are made after excluding fees incurred at the time of swap, and since there is a difference in the price applied at the time of exchange depending on the size of the transaction(Price impact), the amount of your total asset deposited may not be equal to an estimated scale with the user's chosen plus multiplier. To prevent this case, the deposit will only proceed within the transaction range set at the time of swap (slippage 1%), and if it exceeds that range, the deposit transaction may not proceed. (Revert) Please check all relevant information in the ‘expected returns’ section at the bottom and proceed with the deposit.
Withdrawal policy
If a user requests withdrawal, the asset being utilized gets returned first. If you have returned all the assets you are using, you can withdraw the remaining assets and receive them in your wallet
In the withdrawal menu, users can check the total LP Token quantity, which is currently the total asset deposited, and also the amount of the LP Token corresponding to my assets and plus assets, respectively.
If the user withdraws the LP Token corresponding to the plus asset, the LP Token is used to return the asset being utilized. You can check the detailed quantity of LP Token used for return at the Return asset area, and the precise quantity receivable in your wallet can be checked in the 'you get' section.
If the LP Token quantity corresponding to plus assets is 0, the user can withdraw the assets into the wallet by entering the quantity of LP Token equivalent to my assets.
Depending on the size of the transaction at the time of withdrawal, there may be cases where all assets used may not be returned even after the total withdrawal of the plus asset due to the change of the price applied at the time of exchange(Price impact). To prevent this case, the deposit will only proceed within the transaction range set at the time of swap (slippage 1%), and if it exceeds that range, the deposit transaction may not be processed. (Revert)
Policy on auto return regarding utilization rate
Users using Plus Deposit have to pay the corresponding cost instead of maximizing KSP reward efficiency by borrowing additional assets. Costs are included in the utilized assets minute by minute, and the user can withdraw the assets after returning all the utilized assets including the costs.
At this time, automatic return may proceed if the ratio of the utilized asset (asset utilization ratio) to the user's total asset deposited exceeds 85%.
Utilization rate is calculated as follows. Utilization rate(%) = (dollar value of amount of asset utilized/ dollar value of total asset deposited)*100
Since the ratio of asset utilization may show volatile fluctuation due to a decrease in the total value of deposited assets or an increase in the value of utilized assets, users must periodically check the rate of asset utilization to prevent automatic return.
To prevent auto-return, you either lower the asset utilization ratio by depositing assets with a low plus multiplier or manually return your asset by withdrawing your asset in withdrawal tap.
Upon automatic return, the assets currently being utilized by my assets are returned first, excluding the automatic return fee (20%) from the remaining assets, and the user can directly receive the assets (including remaining assets, KSP rewards, and Airdrop assets). If swaps occur during the automatic return process, depending on the size of the transaction, all assets utilized may not be returned due to a change in price applied at the time of exchange(Price impact). In this case, all utilized assets must be returned by using my asset deposited, so there may be no assets that the user can receive even after the automatic return.
Receiving remaining assets can be processed in the [Auto-return history] tab by clicking the [Asset Details] button in the ‘Asset deposited’ area at the top.
The automatic return fee (20%) is used as a safety fund for returning single pool assets that have not yet been returned due to rapid price fluctuations.
Terminology
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