thorchain
Alternative derivation of synths question
Looking at the alternative derivation of synths doc: https://docs.thorchain.org/thorchain-finance/synthetic-asset-model
We see the following:
Based on these definitions $$U = S$$, Dynamically calculated synth units = Total Supply of Synth Asset.
However that doesn't seem correct.
For S = Synth Supply A = Asset Depth L = Liquidity Units U = Synth Units
I agree that it looks as though S has been accidentally used instead of U in the last step (and that S should not equal U): 'the ratio of synth units to LP units' should be U/L, not S/L.
The right side of the equation looks correct as described, also equal to the below:
Ratio of {synth Asset-backing} to {pool Asset depth without synth Asset-backing} (given that synth is always half backed by Asset and half backed by RUNE): (0.5S) / (A - 0.5S) = S / (2A - S)
