Conversion Factors
Last updated
Last updated
The $HEDGE:mHedge conversion ratio changes depending on two criteria:
Length of time-lock Ranging from a minimum of one day (99% conversion loss) up to a maximum lockup of two years (0% conversion loss) E.g., Users locking for the full two years receive at least a 1:1 (1x) conversion on their $HEDGE to mHEDGE. Users locking for the lock minimum of one day receive a conversion ratio of 1:0.01 (0.01x)
Value of $HEDGE stake at the time of lockup Ranging from $10 minimum stake (1x ratio multiple) to a $10M maximum stake (2x ratio multiple) Users can stake more than 10M$ however no additional value / volume benefits will be granted. This is currently scaled based on USD; however, it may be switched to being scaled by $HEDGE amount (a governance vote will be conducted prior to mainnet launch to determine whether the community prefers USD or $HEDGE weighted volume multipliers) E.g., As delineated in Chart 1 below, users locking $HEDGE worth at least $10,000 at current market value (not factoring in price impact or slippage) receive a 1:1.41 conversion if locked for the full two years. If their $HEDGE is worth less than $100 then they receive a 1:1 conversion, even for locking the full two years.
The time-lock factor is of primary importance for determining the $HEDGE to mHEDGE conversion. The stake value serves a secondary role and acts as a modifier of the base ratio predetermined by the time-lock length. I.e. a user that meets the maximum threshold for time-locking (two years) but only the minimum threshold for stake value ($10) receives a better conversion ratio than a user who meets minimum time-lock and maximum stake value. E.g. 10$ locked for two years yields 1:1 ratio while $10,000,000 locked for one day yields 1:0.02 ratio
Both the time weighted and volume weighted variables shift based on a quadratic formula.
Upon expiration users receive back the exact amount of $HEDGE originally locked.
The more mHEDGE a user holds, the greater the $HEDGE staking rewards received.
The full range of benefits HODLers receive by HODLing certain amounts of mHEDGE are fully laid out in the VIP Tier Schedule.
