Provident Liquidity (pLP)

The requirement to lock liquidity tokens in the form of pLP serves the Provident's money market in multiple ways:

• Long-Term Participation: Locking pLP tokens effectively commits users to a set period, increasing the likelihood that they'll maintain vested in Provident Capital.

• Revenue Sharing: This commitment enables 100 % of Provident Capital's fees and revenues, rewarding those who are invested in the protocol's long-term vision.

• Governance Power: pLP give users governance power to partipate in Provident Capital's future growth.

• Attracting New Users: The above dynamics makes Provident's money market more appealing to potential liquidity providers, thereby stimulating both growth and development.

Max pLP Locking APR

Maximum Lock APR

This is calculated as the highest APR achievable when pLP is locked for a one-year period.

• Formula: 1-month lock APR * 1-year lock multiplier (25x)

1-Month Locking APR

This is the current APR for locking your pLP tokens for a one-month period.

• Formula: (Total 1 Month Lockers’ Share of Annualized Protocol Fees) / (Total 1 Month Lockers’ Share of pLP Pool Size)

1 Month Locker Share of Protocol Fees

• Formula: (1 Month Locker Share of Protocol Power) / (Total Protocol Locking Power)

Total Protocol Locking Power

The sum of all lockers’ shares, each adjusted by its respective multiplier.

• Formula:

= (1 Month Lockers' Share of pLP Pool Size * 1 Month Locker Multiplier (1x)) 
+ (3 Month Lockers’ Share of pLP Pool Size * 3 Month Locker Multiplier (4x))
+ (6 Month Lockers’ Share of pLP Pool Size * 6 Month Lockers’ Multiplier (10x))
+ (12 Month Lockers' Share of pLP Pool Size * 12 Month Locker Multiplier)