# Equations

## Stake The swap between IND and sIND (stake and cancellation of stake) is always cashed out at 1:1. The reserve will not require the return of sIND when depositing profits, which will cause an imbalance. The rebase \$sIND is to correct the imbalance between the outstanding deposits of IND and sIND. This rebase allows the outstanding return of sIND to ensure that sIND is equal to a \$IND. According to the reward rate of return tells you the annualized rate of return. It takes into account the effect of compound interest, because sIND rebases exponentially. Measure the dollar value of all INDs in the IN DAO protocol.

## Bond

The bond price is determined by the value of the SLP and the number of outstanding bonds. The agreement considers IND and \$USDT to be equal, because the agreement measures IND by its intrinsic value. This means that we only need to care about the sum of the assets in the pool, not their value. According to the constant product formula x*y = k, the risk-free value is the minimum value of x + y. This happens to be when x = y. We can use the square root of x and y to determine this. The debt ratio is the sum of all IND bonds committed divided by the total supply of IND. This allows us to measure the debt of the system. Premium is derived from the system’s debt ratio and ratio variables. This scaling variable allows us to control the rate of increase in bond prices. Premium determines the income of the agreement, which in turn determines the rights and interests of the bonder. The LP collected at the premium is used to forge a new IND and distribute it to the bonders and DAO. ## Sell If the last market price is greater than TWAP, the sales contract will execute the order at the last market price minus the discount controlled by DAO, thereby providing arbitrage to encourage liquidity.

## Dashboard

Backing per IND Every IND in circulation is backed by the Infinity treasury. The assets in the treasury can be divided into two categories: stablecoin and non-stablecoin.
How the protocol’s liquidity is calculated: 