Compound

When a user has an existing Total Value Locked (TVL) and pending rewards in GalaxyCash, any new deposit will trigger the reinvestment mechanism. This process incorporates the unredeemed rewards into the principal amount.

Compound Example:

• Total Value = 10,000 gFrax

• New Deposit = 200 gFrax

• Pending Rewards = 250 gFrax

Upon depositing 200 gFrax, the new total value is recalculated: Total Value = 10,000 gFrax (current TVL) + 200 gFrax (new deposit) + 250 gFrax (pending rewards). The user will now earn a daily return of 0.5% based on a new total value of 10,450 gFrax.

TVL = Total Value Locked, which is 10,000 gFrax in this case. New Deposit = The additional deposit, which is 200 gFrax. Pending Rewards = The rewards waiting to be claimed, which is 250 gFrax. New Total Value = The updated total value of the investment.

Definitions:

• TVL= Original total value, which is 10,000 gFrax

• Dnew = New deposit, which is 200 gFrax

• R(claimable) = Pending rewards, which is 250 gFrax

• TVLnew= New total value

The formula for the new total value:

$$TVLnew=TVL+Dnew+R(claimable)$$

Calculating the new TVL:

TVLnew= 10,000 gFrax + 200 gFrax + 250 gFrax = 10,450 gFrax

With this new total value, the user's daily earnings are recalculated, including the pending rewards. The formula for daily earnings remains:

$$Edaily=TVLnew×R$$

Where R is the daily yield rate, either 0.5% or 0.005. So,

$$Edaily=10,450×0.005 = 52.25gFrax$$

GalaxyCash's Compound mechanism revolutionizes DeFi interest rate protocols. This feature enables Crypto users to effectively grow their wealth, akin to managing their TVL for the first time. The Compound mechanism opens up multiple strategic possibilities, allowing users to plan their cash flow efficiently while continuously increasing their TVL.