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Methodology
"And on the sixth day God watered his crops, and took a massive rip on the seventh."
The general strategy to these miners is to follow a 6-to-1 ratio whereby you compound (water) your rewards for six days and sell (harvest) them on the seventh day. If you do not water your plants the relative value of your plants will decrease over time, so it is very important that you water at regular intervals. Your reward rate will also decrease if you harvest regularly as well, so it is important that you either stick to the 6-to-1 method or a similar method to not only sustain the protocol, but your own reward rate as well.
As the TVL grows rapidly the rewards put out by the miner will be higher. This can be seen by looking at EQUATION 2 shown in the Smart Contract Overview - the daily rate of marketEggs will be higher with a growing TVL. This is because the contract balance is in the numerator (top number in EQUATION 2) and it scales at a much faster rate compared to marketEggs in the numerator (bottom number in EQUATION 2). However, if the TVL starts to go down then the numerator will scale at a faster rate compared to the denominator resulting in smaller returns.
Last modified 5mo ago