Fees and Formulas

Dynamic Conversion Fee

When converting $vePEARL to CAVIAR, a dynamic conversion fee is applied. The fee is influenced by the balance of the stable LP on Pearl and ranges from a minimum of 12.5% to a maximum of 70%. The dynamic conversion fee formula is:

Dynamic fee = ($CVR_balance / $PEARL_balance) * min_conversion_fee

Example:

If the balance in the Caviar/PEARL LP is 1000 $PEARL and 2000 $CVR, the conversion fee would be:

Conversion fee = (2000 / 1000) * 12.5% = 2 * 12.5% = 25%