LaCucina: What’s in the Oven?
LaCucina’s Ovens and their Cooking Plans, are one of several brilliant innovations that will disrupt DeFi as we know it. We will be delving right into them and discovering how they will help you gain access to additional benefits.
So, what are Ovens & Cooking Plans?
Put simply, an Oven at LaCucina is the equivalent of a Farm — it is a method by which we award liquidity providers with an additional layer of benefits for their liquidity. But as you should probably know by now; we don’t like to put things ‘simply’ in LaCucina.
You see, every Oven in LaCucina will come with its own selection of Cooking Plans. Cooking Plans are a set of reward policies tailored for an Oven we support and are stacked together. They allow for flexibility by creating rewards structures that help a project achieve a particular goal.
What do Cooking Plans do?
The Cooking Plans determine the rewards you can earn. Essentially, a Cooking Plan is a mathematical function of a certain type (see below) that maps a certain value X to its correspondent Y.
The result of the function, or the Y, is always a value between 1 and 10 which determines the users’ ‘multiplier’ gained through that Cooking Plan. Cooking Plan multipliers work together and, the final multiplier of a user for a specific oven is the product of all the multipliers they received via the various Cooking Plans of that Oven.
Each cooking plan will have two main Attributes:
Function:
Each of our Cooking Plans will be using one of the following functions:
A) Growth function —
The higher the X is, the higher the Y will be, up to a certain maximum. We use the Gompertz curve function for that. It has a general shape of the letter S and by adjusting its parameters, we can control its exact shape:
- A is the asymptote, or the maximum value that can be reached (10 in the example below)
- B is the shift along the x-axis, or the point at which growth starts (around 2 in the example below)
- C controls the rate of growth, or how steep the function is. The higher the value, the steeper the curve. In the example below the value is set to 0.37.
B) Exponential Decline function –
Exponential Decline function
The higher the X, the lower the Y, down to a certain minimum. It has this general shape:
All the parameters (A, B and C) control the curviness of the function.
C) Straight line — Horizontal Line. Regardless of the X, Y will remain constant.
The independent variable (X)
Each one of the above functions merely maps X to Y (this is what all functions do). So, the second attribute of the Cooking Plan is the X. We can promote various liquidity related variables by setting them as the X of the cooking plan. Examples:
Timing — We can use an Exponential Decline function to create a Cooking Plan that will give higher multiplier values for users who provide their liquidity early, rather than late. In the below example, users who provide liquidity before May 7th will get a multiplier as high as 7. If they provide liquidity around May 14th, their multiplier will be only 1.8.
Duration — We can use a Growth function to create a Cooking Plan that promotes the prolonged provision of liquidity. In the example below, if the liquidity is provided for less than a week, the user will get a multiplier of 1. However, as time goes by (and the user keeps his liquidity in the liquidity pool), their multiplier will grow up to a maximum of 5 for liquidity provided for 30 days or more.
Quantity— In some cases, we may choose rewarding higher amounts of liquidity like in the example below:
Via the general parameters of each function, we can control its exact shape and tailor Cooking Plans that are specific to each Project’s requirements.
Let us consider an example of three users providing liquidity to an oven with the exact Cooking Plans described above:
In this example, we can see that Alice, who provided liquidity of only $1,000 is getting a much higher multiplier than both Bob and Charlie. The reason being is that Alice provided liquidity that corresponds with the objectives of the Oven — she has provided her liquidity earlier and is keeping it there for a longer period.
Note: In the above example, the Duration multiplier is dynamic and as the liquidity ‘ages’, the multiplier of all liquidity providers will also increase. From the data above, you can see clearly that Alice, despite having provided the least amount of liquidity, is given a final multiplier of x35.
But how is it possible for Alice, having only provided $1,000 of liquidity to the pool, to receive a multiplier of x35, whereas when compared to Charlie, who provided $100,000 in liquidity, receive a multiplier of only x9?
How can Alice get a higher multiplier than Charlie?
It is due to the Cooking Plans inside the Oven that make this possible. There are 3 main variables of a Cooking Plan: Quantity, Duration and Timing.
Each Cooking Plan, is targeting and incentivizing a different requirement of the liquidity pool:
- Quantity — If you are able to provide larger amounts of liquidity, you will receive an increased multiplier.
- Duration — If you are able to provide liquidity for a longer period, you will receive an increased multiplier.
- Timing — If you are able to provide liquidity sooner, you will receive an increased multiplier.
Now let’s look back at the data, Alice provided $1,000 on the 1st of May, and she did so for 30 days. Charlie, on the other hand, provided a significant amount of $100,000, which he provided later, on the 10th of May and was only able to provide the liquidity for just 2 days.
Out of the 3 Cooking Plan variables (Quantity, Duration & Timing), Alice has exceeded 2 of the 3 requirements. Despite providing the least amount of liquidity ($1,000), Alice provided liquidity sooner than everyone else (1st of May) and was also able to lock in the liquidity for longer (30 days).
Because of the way Alice has provided her liquidity, adhering to the Oven specific requirements, Alice is rewarded with a higher multiplier and hence a higher proportion of the LAC tokens allocated to that oven.
A substantial difference compared with bigger fish like Charlie, who would ordinarily be accustomed to receiving the biggest multipliers because they have provided the most liquidity.
Our mission statement of levelling the playing field and creating opportunities, allowing for a fairer distribution of rewards is really at the forefront of what we do. Our Ovens and Cooking Plans were built around this statement, ensuring everyone has an equal chance to claim more benefits, with whatever they have.
Which platforms does LaCucina support?
We currently support Uniswap and Sushiswap on Ethereum and PancakeSwap on BNB Chain (formerly called Binance Smart Chain). We will be continually adding support for more blockchains, swaps and liquidity pools, whilst also expanding the support for more blockchains like Solana, Analanche and Polygon. So be sure to check in on our socials to keep in the know.
Think that’s it for all our rewards levels?
Think again!
But how could you possibly increase your rewards further than this?
By cooking NFTs of course!
Claim more by cooking with NFTs?
Yes, you heard that right, cooking with NFTs. At LaCucina, you can be your own chef, and if you want to increase your benefits, you can. You can combine our special Secret Ingredient NFTs. These NFTs are not just some crazy pieces of art to collect. You can cook them into NFT booster Dishes, and then use them to increase your proportion of LAC tokens.
For now, that is all we can say about cooking with Secret Ingredient NFTs, you will have to wait until the next post to find out more…
