Tidal Force

Tidal Force is the embedded incentive layer of Tidal AMM. It constantly incentivizes LPs in a way that moves the price of symToken/Token closer to 1.

There are two components of Tidal Force:

• Tidal PvP - After LPs provide Token to Tidal AMM, the yield generated by Token (i.e., WETH for GLP) is collected by the protocol and redistributed to LPs under a new rule: LPs with higher price orders get higher rewards.

• Tidal Reward - Yield generated by leverage buyers' positions is collected by the protocol to reward LPs who place orders above the system average price.

Tidal PvP

Tidal PvP incentivizes LPs to place orders at higher-than-average prices to capture other LPs' yield.

$$\Delta R_L=S_L*(1-\frac{10P_L-9}{10P_0-9})*A*\alpha=S_R*(\frac{10P_R-9}{10P_0-9}-1)*A*\alpha=\Delta R_R$$

$$APR_Li=\frac{10P_Li-9}{10P_L-9}*A*[1-\alpha*(1-\frac{10P_L-9}{10P_0-9})]$$

$$APR_Rj=\frac{10P_Rj-9}{10P_R-9}*A*[1+\alpha*(\frac{10P_R-9}{10P_0-9})-1]$$

where:

$P_0= System\,average\,price$

$S_L=Total\,liquidity\,of\,which\,price\,lower\,than\,P_0$

$S_R=Total\,liquidity\,of\,which\,price\,higher\,than\,P_0$

$P_L=Weighted\,average\,price\,of\,S_L$

$P_R=Weighted\,average\,price\,of\,S_R$

$A: Underlying \,yield\,APR\,of\,Token$

$\Delta R_L:PvP\,loss\,for\,S_L$

$\Delta R_R:PvP\,loss\,for\,S_R$

$\alpha=10^\frac{P_R-P_L}{1-P_R}$

$APR_Li:APR\,of\,the\,i_{th}\,order\,with\,price\,lower\,than\,P_0$

$APR_Rj:APR\,of\,the\,j_{th}\,order\,with\,price\,higher\,than\,P_0$

Tidal Reward

Tidal Reward consists of a fraction (currently set at 50%) of yield generated by all positions of leverage buyers. It is solely shared by LPs who place orders above the system average price. Tidal Reward received by an individual LP each block is determined by the amount of liquidity he provided and amount of staked SYM token he held:

$$Received\,Reward\,per\, block=\frac{weight}{SUM(weight)}*Tidal\,Reward\,per\,block$$

where:

$$weight=min(0.4*liquidity\,provided+0.6*S_R*\frac{staked\,SYM}{SUM(staked\,SYM)},liquidity\,provided)$$