Alternative derivation of synths question
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Looking at the alternative derivation of synths doc: https://docs.thorchain.org/thorchain-finance/synthetic-asset-model
Based on these definitions
However that doesn't seem correct.
For
S = Synth Supply
A = Asset Depth
L = Liquidity Units
U = Synth Units
I agree that it looks as though S has been accidentally used instead of U in the last step (and that S should not equal U):
'the ratio of synth units to LP units' should be U/L, not S/L.
The right side of the equation looks correct as described, also equal to the below:
Ratio of {synth Asset-backing} to {pool Asset depth without synth Asset-backing} (given that synth is always half backed by Asset and half backed by RUNE):
(0.5S) / (A - 0.5S)
= S / (2A - S)
This was fixed