# CORE: Floor Price and Lending

With coreDEX: Lending releasing later this month, we want to take a closer look at the tokenomics involving CORE, the floor price and how the new lending module will make use of CORE’s floor.

# CORE in Circulation

The forthcoming lending module will have an amplified deflationary effect on the total supply, due to its **Liquidation **mechanism. In order to allow loans on the former LP tokens against DAI, the three different LP tokens needed to be migrated into a unified pool of CORE and DAI. The underlying value of each pool was sold to DAI and both, CORE and DAI was transferred to the CORE deployer in exchange for coreDAO Vouchers. This action has ultimately removed 8,211.26 CORE from the total supply. Along with the 98.076 CORE previously burned from the Fanny Vault, the total circulating supply amounts to 1690.66 CORE.

# Determining CORE’s lending floor

In order to calculate the maximum lending value for CORE, without disrupting its floor, a combination of “Constant Product Formula” calculations and selling averages have been used:

To begin our calculation one must utilize Uniswaps automated market making algorithm and solve for k:

`k = x * y`

x = pooledCORE

y = pooledDAI

`k=8494.391179*58116831.88`

**k=4.93667E+11**

**Next we need to determine CORE’s circulating supply, before the migration:**

`98.075668760377202873`

CORE has been burned during the FANNY Vault event which means the total supply of CORE amounts to `9901.924331239622797127`

Let’s sell the total supply of CORE into the pool and determine the amount of DAI left in it:

k = x*y493667104066.82 = (9901.924331239622797127) * ySolving for y:

y = 493667104066.82 / 9901.924331239622797127y = 49,855,673.26 DAI

As a result we have 49,855,673.26 DAI in the pool, our Total Value Permanently Locked.

Next, we need to answer several questions to determine the average value of CORE:

**What is the value of the last CORE sold into the pool?**

Solve equation for 9902.92 (≈1 more than before)k = x*y

493667104066.82 = (9902.92) * y

y = 493667104066.82/9902.92y = 49,850,660.62 DAI

Comparing these results, we can assume that the difference between all CORE in the pool and all but 1, is:

`49,855,673.26 — 49,850,660.62 = `

**5,012.64**

Therefore, one can assume the last CORE to be valued at **5,012.64 DAI**

**What is the value of the first CORE sold into the pool?**

`k = x*y`

493667000000=8495.391179 * y

y = 58116831.88–58109978.65 = **6,853.23 DAI**

Therefore, one can assume the first CORE sold, to be valued at **6,853.23 DAI**

**What is the average sell price of CORE sold into the pool?**

To solve for average, the difference between the pooled DAI at the beginning and the floor DAI is divided by all the CORE sold.pooled DAI in the beginning: 49,855,673.26

Floor DAI: 58,116,831.88

Difference = 58,116,831.88 - 49,855,673.26 = 8,261,158.62217046Average Price:

8261158.62217046 / 1505.608821 =5,486.92 DAI

This means that the average floor price of which CORE can be lend out, by coreDEX: Lending is ~5,486.92 DAI.

As you can see the upcoming coreDEX is having a hyperdeflationary effect on CORE and its supply while extracting maximum value out of the token’s floor. The team is delighted to announce that the development and testing of the lending module is heading into its final stages. More information regarding coreDEX: Lending as well as news about the public review period, will be released, closer to launch.

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