🧑‍💻Technical Details

This section provides a deeper technical understanding of how Oasis works. While not necessary for using the platform, these details offer insights into the mathematical foundations and mechanisms that ensure the protocol's security and efficiency.

Core Mathematical Framework

Position Value Calculations

When you provide liquidity, several key values are calculated:

Initial Position Setup

For a deposit amount D_token:

HTR_matched = D_token / P_htr_i

Where:

  • D_token: Initial token deposit amount

  • P_htr_i: Initial HTR price

  • HTR_matched: Amount of HTR matched by Oasis

Bonus Calculation

HTR_bonus = (D_token × Bonus_rate) / P_htr_i

Where:

  • Bonus_rate: Set by lock duration (10%, 15%, or 20%)

  • HTR_bonus: Amount of bonus HTR tokens received

Protection Mathematics

Value Preservation Model

The protocol maintains constant product AMM mathematics:

x × y = K

Where:

  • x: Token amount in pool

  • y: HTR amount in pool

  • K: Constant product

Price Ratio Calculations

R = P_htr_f / P_token_f

Where:

  • P_htr_f: Final HTR price

  • P_token_f: Final token price

  • R: Price ratio

Protection Calculations

Value Deficit Calculation

Token_deficit = max(0, D_token - x_f)

Where:

  • x_f: Final token balance

  • Token_deficit: Amount requiring protection

Protection Payment

When protection applies:

HTR_protection = Token_deficit / P_htr_f

Liquidity Pool Mechanics

Pool Balance Adjustments

For any new price ratio R, new pool balances are calculated as:

y/x = R
x × y = K

Therefore:

x = sqrt(K/R)
y = x × R

Pool Value Protection

Protection ensures that for any price movement within 4x:

withdrawal_value ≥ initial_deposit_value

Where withdrawal_value includes:

  • Original token amount (or equivalent)

  • Protection compensation in HTR

  • Accumulated trading fees

Return Calculations

Total Position Value

For positions with held bonus:

V_total_hold = LP_value + (B_htr × P_htr_f)

For positions with sold bonus:

V_total_sell = LP_value + (B_htr × P_htr_i)

Where:

  • LP_value: Liquidity position value

  • B_htr: Bonus HTR amount

  • P_htr_f: Final HTR price

  • P_htr_i: Initial HTR price

Return Metrics

Percentage return calculation:

Return_% = ((V_total / D_token) - 1) × 100

Risk Management

Protection Boundaries

Full Protection Range:

  • Up to 4x price divergence

  • Complete value preservation

  • Automatic calculation

Reserve Management

The protocol maintains:

  • HTR reserve for each pool

  • Automated matching system

  • Protection reserve allocation

  • Dynamic capacity management (new HTR deposits can be made to increase the reserve available)

Market Simulation Model

Return Scenario Calculations

The simulation tool models returns using:

  1. Price movement inputs:

    • HTR price change

    • Token price change (for hBTC)

  2. Strategy comparisons:

    • Hold bonus path

    • Immediate sell path

    • Protection impacts

    • Fee accumulation

Performance Characteristics

Operational Parameters

  1. Transaction Processing:

    • Instant matching

    • Automatic protection

    • Real-time calculations

  2. Value Tracking:

    • Continuous monitoring

    • Price feed integration

    • Protection threshold checks

Additional Resources

PreviousProtection Mechanics

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