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USDM Incentives Model
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Required Monthly Incentives
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Protocol 1 2,500
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Protocol 2 5,000
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Protocol 3 10,000
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Protocol 4 10,000
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Protocol 5 5,000
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Protocol 6 5,000
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[TOKEN] Needed for Monthly Incentives
 37,500
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Scenario 1 - 10% [TOKEN] Price Appreciation In Period
Scenario 2 - 10% [TOKEN] Price Depreciation In Period
Scenario 3 - 25% [TOKEN] Price Dip In Period
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[TOKEN] Price - Start of period ($)0.38[TOKEN] Price - Start of period ($)0.38[TOKEN] Price - Start of period ($)0.38
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Value of Collateral ($) 21,375 Value of Collateral ($) 21,375 Value of Collateral ($) 21,375
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USDM Debt 14,250 USDM Debt 14,250 USDM Debt 14,250
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Initial Collateralization Ratio150%Initial Collateralization Ratio150%Initial Collateralization Ratio150%
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[TOKEN] Price -Min in period ($)0.38[TOKEN] Price -Min in period ($)0.342[TOKEN] Price -Min in period ($)0.285
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Value of Collateral ($) 21,375 Value of Collateral ($) 19,238 Value of Collateral ($) 16,031
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USDM Debt 14,250 USDM Debt 14,250 USDM Debt 14,250
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Min Collateralization Ratio150%Min Collateralization Ratio135%Min Collateralization Ratio113%
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[TOKEN] Price - End of period ($)0.418[TOKEN] Price - End of period ($)0.342[TOKEN] Price - End of period ($)0.38
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Value of Collateral ($) 23,513 Value of Collateral ($) 19,238 Value of Collateral ($) 21,375
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USDM Debt 14,250 USDM Debt 14,250 USDM Debt 14,250
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End Collateralization Ratio165%End Collateralization Ratio135%End Collateralization Ratio150%
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Ending P&L vs Direct TOS Rewards ($) 1,425 Ending P&L vs Direct Token Rewards ($)- 1,425 Ending P&L vs Direct Token Rewards ($) -
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Scenario NotesScenario NotesScenario Notes
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As [TOKEN] is not being used directly for incentives the market price should be less impacted by the value of incentivesAs [TOKEN] is not being used directly for incentives the market price should be less impacted by the value of incentivesAs [TOKEN] is not being used directly for incentives the market price should be less impacted by the value of incentives
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Where price appreciation occurs during the period foundation have the opportunity to mint additional incentives for the following period without depositing additional [TOKEN] provided that the collateralization ratio is maintained within the target boundsIf foundation chose to close the trove at the min [TOKEN] price then a loss would be incurred as more [TOKEN] would be required to repurchase the USDM relative to if the [TOKEN] had been used allocated at the start of the period for incentivesAssuming a short term price fluctuation followed by recovery then there would be no P&L impact relative to using [TOKEN] directly for incentives
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An initial collateralization ratio of 122% would be needed to avoid liquidation on a 10% price dip An initial collateralization ratio of 146% would be needed to avoid liquidation on a 25% price dip
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