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Liquidity Pools

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LP
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For each supported token, there are two pools, on on the L1, and the other, on the L2.
When a user wishes to bridge funds into the L2 (fast bridge to L2), the user deposits funds into the L1 pool, triggering a message to be sent cross-chain to the L2 pool, which then sends the correct amount of funds to the user's L2 wallet. Likewise, the fast bridge to L1 consists of a user depositing funds into the L2 pool, which then triggers the L1 pool to send the user the correct amount of funds to their L1 wallet. For BOBA, there are no delays for users to move funds from L1 to L2, and from L2 to L1.
Aside from normal users, the pools offer additional functionality to other parties. Liquidity providers (stakers) can deposit and withdraw funds from the pools; they earn rewards in proportion to their stake in the pool. Occasionally, they will withdraw their rewards via a dedicated function.
Finally, the pools are controlled by an admin (OnlyAdmin) and/or the Boba DAO (OnlyDAO), which is able to set the fees users must pay to use the fast bridges. These fees are the source of the rewards for the liquidity providers.

Reward Calculation and Updating

  • A deposits 100
    A info
    Deposit Amount
    Reward
    Pending Reward
    100
    0
    0
    Pool info
    Total Rewards
    Reward Per Share
    Total Deposit Amount
    0
    0
    100
  • The pool generates 10 rewards
    Pool info
    Total Rewards
    Reward Per Share
    Total Deposit Amount
    10
    0
    100
  • B deposits 100
    First, we update the rewardPerShare without considering the new deposit amount:
    Pool info
    Total Rewards
    Reward Per Share
    Total Deposit Amount
    10
    10/100
    100
    Calculate B's information
    B info
    Deposit Amount
    Reward
    Pending Reward
    100
    rewardPerShare * depositAmount = 10/100 * 100 = 10
    0
    The total deposit amount of the pool is now 200.
    Pool info
    Total Rewards
    Reward Per Share
    Total Deposit Amount
    10
    10/100
    200
  • The pool generates another 5 rewards
    Pool info
    Total Rewards
    Reward Per Share
    Total Deposit Amount
    15
    10/100
    200
  • If A withdraws 100 tokens, we first update the rewardPerShare:
    Pool info
    Total Rewards
    Reward Per Share
    Total Deposit Amount
    15
    10/100 + increased_rewards / total_deposit_amount = 10/100 + 5/200
    200
    The reward for A is
    deposit_amount * reward_per_share - reward = 100 * (10/100 + 5/200) - 0 = 12.5
  • If B withdraws 100 tokens, we first update the rewardPerShare:
    Pool info
    Total Rewards
    Reward Per Share
    Total Deposit Amount
    15
    10/100 + increased_rewards / total_deposit_amount = 10/100 + 5/200
    200
    The rewards for B is
    deposit_amount * reward_per_share - reward = 100 * (10/100 + 5/200) - 10 = 2.5
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Last modified 8mo ago