Maintaining Eligibility Status
Remember : a minimum 5% ratio between your total deposit value and LP value must be maintained at all times to remain eligible!
As a risk asset, pricing volatility may swing users in and out of eligibility.
Example :
John has $5 of LP and $100 of USDC deposits, which means John has met the 5% requirement (eligible for emissions)
The price of CORE declines 5%, thus taking the value of LP down below $5, and John is now below the 5% threshold required to earn emissions
The protocol needs to check the eligibility state constantly to determine "who is in, who is out."
When you are eligible, banners at the top of each page will indicate "Emissions active."
If you fall out of eligibility, a "Emission inactive" notification is visible at the top of LP staking page and indicates the amount of LP required to regain eligibility. Click "Zap into LP" and follow the prompts to resume receiving $ARS emissions.
If a money market participant wishes to increase the likelihood of remaining eligible for ARS emissions, consider maintaining a buffer zone above the 5% threshold to account for volatility.
Example:
Carl deposits $1,000 USDC in the money market and needs to lock at least $50 of LP to quality for ARS emissions.
Carl decides to lock $60 LP (10% above the threshold) to maintain eligibility status in the event of volatility.
Additionally, users can enable auto-compound & auto-relock from the manage AquariusLoan page to increase the likelihood of retaining eligibility status.
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