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  1. Governance

Boost VCI Rewards

PreviousveVCINextLending

Last updated 2 years ago

Vinci Protocol will calculate VCI reward based on the voting power (veVCI balance) and lending and borrowing ETH amount in a pool.

Reward Earning Weight represents the final ETH amount involved in the reward calculation, referring to which is calculated as follows:

W=Min.(accruedETH∗40%+totalAccruedETH∗votingPowertotalVotingPower∗60%, accruedETH)W = Min.(accruedETH * 40\% + \frac {totalAccruedETH * votingPower}{totalVotingPower * 60\%},\ accruedETH)W=Min.(accruedETH∗40%+totalVotingPower∗60%totalAccruedETH∗votingPower​, accruedETH)

accruedETH represents total lending and borrowing ETH amount of a single user in a pool.

accruedETH=lendETH∗0.2+borrowETH∗0.8accruedETH = lendETH * 0.2 + borrowETH * 0.8accruedETH=lendETH∗0.2+borrowETH∗0.8

totalAccruedETH represents total lending and borrowing ETH amount of all users in a pool.

votingPower is the veVCI balance of a user, totalVotingPower is the total amount of the veVCI token.

Reward Ratio=Earning WeightTotal Earning WeightReward\ Ratio = \frac{Earning\ Weight}{Total\ Earning\ Weight}Reward Ratio=Total Earning WeightEarning Weight​

Reward ratio is the final factor that will be used to calculate your share of reward in a pool.

Boost Factor=Earning WeightaccruedETH∗40%Boost\ Factor = \frac{Earning\ Weight}{accruedETH * 40\%}Boost Factor=accruedETH∗40%Earning Weight​

​Boost factor is a convenient parameter for evaluating how many times you will be rewarded if you lock your VCI tokens.

Curve's boost reward formula,