Liquidity Created

Liquidity Created refers to the total value of the liquidity pool (LP) collateral that has been deposited on the chosen Collateral DEX to back the Liquidity Note. It represents the combined value of both the pay token and the underlying token contributed by investors and the project.

Calculation

• Formula:

  Liquidity Created = (Amount of Pay Token Deposited × Price of Pay Token) + (Amount of Underlying Token Deposited × Price of Underlying Token)

• Example:

  • Pay Token: USDC

  • Amount of Pay Token Deposited: 100,000 USDC

  • Price of Pay Token: $1 USDC (since it's a stablecoin)

  • Underlying Token: PROJECT

  • Amount of Underlying Token Deposited: 50,000 PROJECT

  • Price of Underlying Token: $2 PROJECT

  Liquidity Created = (100,000 USDC × $1) + (50,000 PROJECT × $2) = $100,000 + $100,000 = $200,000