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add dyfi redemption chart to veyfi.md (#389)
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* add dyfi redemption chart to veyfi.md

* Apply suggestions from code review

Co-authored-by: Marco Guaspari Worms <[email protected]>

* add .markdownlint.json to gitignore

* update chart image

---------

Co-authored-by: Marco Guaspari Worms <[email protected]>
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rossgalloway and MarcoWorms authored Dec 14, 2023
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7 changes: 5 additions & 2 deletions docs/contributing/governance/veyfi.md
Original file line number Diff line number Diff line change
Expand Up @@ -42,7 +42,7 @@ Governance Forum Thread: https://gov.yearn.fi/t/yip-65-evolving-yfi-tokenomics
- Increased locking duration is rewarded with increased weight, so locking for 4 years gives 100% weight, locking for 2 years 50% weight, etc.
- YFI is allocated to gauges based on bi-monthly governance votes. Each gauge can get a different amount of bought-back YFI to emit.
- Based on their veYFI lock, users can boost their gauge rewards by up to 10x proportional to the number of vault tokens deposited, when they claim YFI rewards from gauges. The greater the amount of veYFI, the more vault deposits can be boosted for the user.
- The boost mechanism will calculate your earning weight by taking the smaller amount of two values, provided in the formula below:
- The boost mechanism will calculate your earning weight by taking the smaller amount of two values, provided in the formula below:
- Gauge boost formula: `min(AmountDeposited, (AmountDeposited /10) + (TotalDepositedInTheGauge * VeYFIBalance / VeYFITotalSupply * 0.9))`
- A claim with boost under 100% will send the leftover tokens to veYFI holders.

Expand All @@ -67,7 +67,7 @@ Governance Forum Thread: https://gov.yearn.fi/t/yip-65-evolving-yfi-tokenomics

## dYFI

dYFI (previously specified as oYFI) is a token introduced as part of Yearn's veYFI tokenomics program. It is an ERC-20 token that allows its holder to buy back YFI at a discount.
dYFI (previously specified as oYFI) is a token introduced as part of Yearn's veYFI tokenomics program. It is an ERC-20 token that allows its holder to buy back YFI at a discount.

| Description | Address |
|--------------------|-----------------------------------------------------------------|
Expand All @@ -94,6 +94,9 @@ dYFI (previously specified as oYFI) is a token introduced as part of Yearn's veY
- **k** = `4.6969`
- **s** = `configurable scaling factor`
- **x** = `veYFI_supply / YFI_supply`

![image](/img/charts/dyfi-redemption-chart.png)

- ETH received from dYFI redemption is redirected to automated YFI buybacks handled by an immutable smart contract, like the one already in production for DAI.

### Benefits
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Binary file added static/img/charts/dyfi-redemption-chart.png
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