│ The Math

Understand how points and fees distribute

To start off, the base points per hour of each pool are defined as:

$$\text{Base Points per Hour} \ (pool) = 10.000 \cdot Multiplier \ (pool)$$

Multipliers are pool-dependant and defined by the protocol to represent the trading activity and liquidity of each pool — pools with higher multipliers receive more points.

You can always check a pool's multiplier at the app

These points are fixed and limited, which means they are and simple and yet reward liquidity providers who add earlier.

Then, your share gets computed:

$$Share = \frac{\text{User Fees}}{\text{Pool Fees}}$$

And your raw points per hour also get calculated:

$$\text{User Points per Hour} = Share \ \cdot \ \text{Base Points per Hour} \ (pool)$$

And boosts explained earlier get applied:

$$\text{Final Points per Hour} = \text{User Points per Hour} \ \cdot \ (1+ \sum Boosts)$$

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Its very important to understand, points are calculated at the backend; behind scenes. The UI is designed to update the points live (in a nearly seconds matter), but due to the big volume these can stop or lag time to time. This doesnt mean your points arent being added.

If your points fail to update on the app's UI, please, just wait and let our system calculate them and display them. Waiting for a few hours or reconnecting your wallet can help

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Example

Lets summarise with a simple but theoretical example:

Hour	Pool Fees	User Fees	Pool Points	Share	User Points
1	0	0	10000 (x10 Mult.)	0	0
2	300	100	10000	0.3	3000
3	100	50	10000	0.5	5000
4	0	0	10000	0	0

Let's say we want to calculate the points earned for 4 hours in a pool. We will do 4 hours and not 24 for sake of simplicity, but it would work the same.

For each hour, the pool will generate some fees - and our positions will too. By computing the ratio between those two fees we will get our share. Our points then, are just the share times the points earned by the entirety of the pool. Assuming a multiplier of 1x in this case it would be 8000 points

To finally obtain the points earned in a day or in a week, we just sum the points earned in each hour

The "average" issue

It's very important to note you can't estimate your daily points by just dividing between your user fees and the pool fees. The "sum of ratios" (points in each hour) it's different than the "total ratio" (points daily)

In the before example, if we calculated the points by doing:

$$Points = \frac{100 + 50}{300+ 100} * 10000 = 3750$$

We would get 3750 points.

This effect is aggravated in pools with low activity and low liquidity, due to the nature of non-linearity

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Gliquid Points 2.0 keeps incentives crystal-clear: generate fees, boost wisely, and watch your rank climb