UpsideFinance Reward tokens (rUFts)
A user’s winning odds on UpsideFinance are directly proportional to the amount deposited and the duration of the deposit by the user in the pool. The odds are designed to create a fair and equitable system where users who deposit larger amounts for longer periods of time, and thus contribute more to the interest generation of the pools, are rewarded with higher winning odds. And, more importantly, by including deposit duration, users who deposit huge amounts near the end of the lottery do not have a disproportionate and unfair advantage of winning.
To reward the active members of our community, the UpsideFinance team is pleased to introduce UpsideFinance Reward (rUFt) tokens. The soon to be minted rUFts may be used by the users to increase their odds of winning in the lossless lottery. This gives our active and loyal community members an advantage over others.
The soon to be minted rUFts may be used by the users to increase their odds of winning in the lossless lottery.
To sum up, the probability of winning is the time-weighted average plus the depositor’s rUFt token share over the entire lottery period and the sum of rUFt(s) deposited by all the depositors.
The team has proposed the following equation for calculating the winning odds of a user in a lossless lottery (please be advised that this is subject to change before the launch of the app on mainnet):
A depositor’s share of the lottery pool = s(d)
s(d)= Deposit Amount*Deposit Duration + m
Where d is a depositor, Deposit Amount is the deposit amount, Deposit Duration is the period of time measured from the moment of the deposit to the end of the lottery period and m is the amount of rUFt tokens the depositor chooses to deposit in the pool.
A depositor’s winning odds =
Where d(i) is a depositor and n is the total number of depositors that exist at the end of the lottery period.
For example, if two users, user A and B, deposit 500 USDC on the third day and 700 USDC on the last day of a week-long lottery respectively. User A chooses to deposit 50 rUFt while user B deposits 100 rUFt. their probability of winning is calculated as follows:
User A’s share = 500 USDC * 5 days +50 = 2550
User B’s share = 700 USDC * 1 day + 100= 800
User A’s winning odds:
User B’s winning odds: