Lixir Docs
How liquidity providers can increase their farming rewards
Every liquidity provider can boost their farming rewards up to a factor of 2.5x by holding enough veLIX. The exact formula for this boost is the same as it is in Curve's model and described by the user's weight in the gauge:
[user’s boost]=min(1+1.5[user’s veLIX balance][total veLIX supply][total LV tokens staked][user’s LV tokens staked],2.5),[\text{user's boost}] = \min\Big(1 + 1.5 \frac{[\text{user's veLIX balance}]}{[\text{total veLIX supply}]} \frac{[\text{total LV tokens staked}]}{[\text{user's LV tokens staked}]}, 2.5\Big),
We can also simplify this formula if one wants to calculate the amount of veLIX required to achieve the max boost of 2.5x in a given gauge:
[veLIX req. for max boost]=[user’s LV tokens staked][total LV tokens staked][total veLIX], [\text{veLIX req. for max boost}] = \frac{[\text{user's LV tokens staked}]}{[\text{total LV tokens staked}]} [\text{total veLIX}],
and once that quantity is calculated, the user can check how much $LIX he is required to timelock to obtain this amount of veLIX. Keep in mind your veLIX constantly decreases, so it may be wise to overshoot this quantity by a couple percent if aiming to keep the boost at 2.5x.
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