Redemption Price
Inception’s Redemption Price gives you access to the most recent valuation dynamics on our platform. It provides up-to-the-minute ratios, allowing you to precisely determine the redemption price of your Liquid Restaking Tokens (LRTs).
This critical formula, as detailed in the following explanation of Redemption Prices, ensures clarity of information so you can make informed decisions about your digital assets.
What is the Redemption price?
The Redemption Price on Inception is the exact amount of assets that users receive when redeeming their Liquid Restaking tokens after the applicable unbounding period. It also determines the number of Liquid Restaking Tokens (LRTs) that users receive when they stake their original assets on the Inception Dapp.
The formulas are as follows:
Original Asset Token Calculation:
When a user unstakes their assets, the following formula applies:
Original_asset = liquid_restaking_token / ratio
This results in the user obtaining more original assets than the number of redeemed Liquid Restaking Tokens (LRTs)
Liquid Restaking Token Calculation:
When a user stakes their assets, they use the formula:
liquid_restaking_token = Original_asset * ratio
This results in the user receiving the correspondent Liquid Restaking Tokens, adjusting the value of the original asset.
This dynamic occurs because the value of Liquid Restaking Tokens appreciates over time relative to the initially staked assets, driven by the formula:
Ratio = supply / (TVL + rewards * (1-fee))
Redemption Price
The RateProvider contract is used to get the redemption price for an LRT. Check all the RateProviders contracts here:
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