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What is Reallocation?

Every Monday at 00:00 AM UTC, both the Global Yarmerboard rankings & project-specific Yarmerboard rankings (e.g. Multipli’s very own Yarmerboard) are updated based on recalculated Yarmer scores. These recalculated yarmer scores update the Top 25 Yarmers of each project for the following week, and also the liquidity allocation that each of these Yarmers can attract. So, one could imagine that these Yarmers may experience their allocations becoming smaller as their yarmer scores go down, or bigger, as their yarmer scores go up, on a weekly basis as their yarmer scores get recalculated. Now comes the tricky part.
  • What happens if a Top Yarmer’s new allocation is smaller than that of the previous week?
  • What happens to their LPs’ deposits then? Are they withdrawn from the Yarmer?
TLDR is that deposits continue to accrue native yields through project’s strategies and each of the users who deposited through any of the Top Yarmers, will still be able to enjoy those yields, though the yield distribution method may vary depending on the projects’ architecture. As for token rewards (e.g., Yarm(Multipli) points and Orbs), they’ll continue to be rewarded based on users’ TWAB (Time-Weighted Average Balance). Since the Top Yarmer’s newly updated allocation is now smaller, the Yarmer can attract less liquidity than before, hence leading to less Carry Rewards for the Yarmer.

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Priority Mechanism

There’s a set of priorities that were chosen to determine how the reallocation should work. Following the priority mechanism, LPs’ deposits may be partially or fully reallocated to other Top 25 Yarmers. The system follows these priorities when reallocating deposits:
  1. The first Yarmer whom you backed the deposit to (your original choice)
  2. If the first Yarmer’s allocation is 100% utilized during reallocation, the system reallocates following this order:
    • Starts from the Top 1st Yarmer and continues through to the Top 25th Yarmer
    • Within this reallocation process, LPs with greater TWAB (Time-Weighted Average Balance) take priority over LPs with smaller TWAB.
This priority system ensures that LPs’ deposits remain productive throughout so that they can continue to earn both native yields through the deployed strategies and also the token incentives.
Do take note that the mechanism is currently still in its early-stage and based on users’ feedbacks, the mechanism will be improved and adjusted over time.
Each of the project-specific Top 25 Yarmers have an allocation “cap” calculated based on their weekly yarmer score. Once the total deposits made through a Top Yarmer exceeds their individual allocation for that week, the excess deposits do not bring in any Carry Reward for the Yarmer. This motivates all Top 25 Yarmers on project-specific Yarmerboards to remain competitive at increasing their Yarmer Score and hence their weekly liquidity allocation that they can attract and earn Carry Rewards from. As for LPs, they will still continue to earn native yields from the project’s strategies, and they will still be able to earn their Yarm(Project) points and Project points.