Deployment Logic

FlowFi allocates a portion of its POA to venues based on the votes of the LDs, leveraging LP-provided assets as defined by the POA multiplier. A share of the rewards generated by the POA is claimable by accDPT lockers. The process of determining liquidity deployments adheres to several objectives and constraints, known collectively as the "FlowFi Allocator".

Follow LD Votes

Initially, the allocator decides on deployments solely based on the votes of liquidity directors, setting aside other constraints.

Enforce Guardrails

The allocator then assesses the capital available for deployments.

• POA Multiplier (0.5x): This determines the volume of LP assets that can be deployed in conjunction with the POA, considering both the Reactor Token and Pair Asset (e.g., ETH), hence defining a deployable asset amount.

• Available Pair Asset: If the amount of deployable Pair Assets (such as ETH) is insufficient to deploy all available liquidity, the ETH is distributed pro rata across the Token Reactors.

The FlowFi allocator repeatedly goes through the aforementioned process, guided by two primary objectives:

• Preserve the existing scale of individual deployments.

• Optimize the overall usage of POA and LP assets.

It's crucial to understand that this methodology can sometimes lead to deployment outcomes that might seem counterintuitive at first. For instance, the Token Reactor receiving the highest number of DPT/LD votes might not lead to the highest liquidity deployment if the available POA or LP assets are comparatively less than those for other Token Reactors.