Analyzing the Relationship Between Pool Fund Utilization and Staked SFT Yield
About SFT Protocol: SFT Protocol is a Web 3 infrastructure protocol that accelerates Web 3 development through LSD, AI data storage, privacy computing, optimization algorithms, and collaboration with global research institutions. SFT offers LSD products that focus on storage and computing blockchains, including Filecoin, while building Web3 infrastructure ecosystems.
I. Calculation of Interest and Remaining Earnings from Staked SFT
In the liquidity pool of the Pool, staking SFT for lending FIL generates interest and residual earnings. This process can be understood through the following steps:
- Definition and Calculation of Interest Calculation Multiplier X
Define three segments of lines: Segment 1: y1 = 0.5 Segment 2: y2 = 0.5 + 0.5 * [(u — 0.2) / (0.8–0.2)] Segment 3: y3 = 1 + 0.66 * [(u — 0.8) / (1–0.8)]
2. Interest Calculation Formula
Let’s assume user A’s lending conditions as follows:
· Collateral ratio f = 60%
· Asset utilization u = 70%
· Staked SFT quantity: 1000 SFT
· Lent amount N = 600 FIL (1000 SFT * 60%)
· Reward per single SFT = 0.0006 FIL/SFT
Based on the given conditions and the calculation of the interest calculation multiplier X, we can derive:
Daily reward = 1000 * 0.0006 = 0.6 FIL
Interest calculation multiplier X = 0.5 + 0.5 * [(0.7–0.2) / (0.8–0.2)] ≈ 0.9167
Daily interest = 600 * 0.0006 * 0.9167 ≈ 0.33 FIL
Daily residual earnings = Daily reward — Daily interest = 0.6–0.33 = 0.27 FIL
II. Optimal Fund Utilization Range
When choosing between lending or leveraged mining, there’s a relationship between Pool asset utilization u and interest expenditure. The interest calculation formula is: Lent quantity * Per(reward) * X, where X is related to u.
Based on the calculation of the interest calculation multiplier X, we can conclude:
· When u = 0.7, X ≈ 0.9167
· When u = 0.8, X = 1
· When u = 0.85, X ≈ 1.0417
As X increases, interest expenditure rises, and the variation of X is related to the magnitude of Pool asset utilization u. Therefore, for lenders, the most favorable range is when Pool asset utilization u is below 80%, as this indicates lower interest expenditure.
In conclusion, when Pool Asset utilization u is below 80%, it is the most favorable range for lenders in terms of assest utilization, as it reduces interest expenditure.
