Notation (N)

• $x$: real reserve of FT in the pool

• $y$: real reserve of XT in the pool

• $\^x$: virtual reserve of FT in the pool

• $\^y$: virtual reserve of XT in the pool

• $p_{ft}$: price of FT

• $p_{xt}$: price of XT

• $p_{underlying}$: price of underlying token

• $\varepsilon$: loan to value ratio

  • $N_{\varepsilon}$: numerator of $\varepsilon$

  • $D_{\varepsilon}$: denominator of $\varepsilon$

• $r$: APR (Annual Percentage Rate), borrow interest rate

  • $D_{r}$: denominator of $r$

  • $D_{r}$: denominator of $r$

• $\theta$: time ratio

  • $N_{\theta}$: numerator of $\theta$

  • $D_{\theta}$: numerator of $\theta$

• $\gamma$: liquidity scaling factor

  • $N_{\gamma}$: numerator of $\gamma$

  • $D_{\gamma}$: numerator of $\gamma$

• $d_{DTM}$: days from current to maturity date

• $R_x$: reserve of FT token in the pool

• $R_y$: reserve of XT token in the pool

• $\^R_x$: virtual reserve of FT token in the pool

• $\^R_y$: virtual reserve of XT token in the pool

• $S_{\mathscr{L}_x}$: the total supply of lpFT token

• $S_{\mathscr{L}_y}$: the total supply of lpXT token

• $P$: current XT to FT price

• $L$: virtual liquidity

• $P_a$: minimum price

• $P_b$: maximum price