sushi-rewards-spec

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Atomic arbitrage profit (aarb): is defined as the gain of two atomically executed arbitrage trades $TA$ and $TB$ on exchange $A$ and $B$.

Non-atomic arbitrage profit (naarb): is defined as the arbitrage gain, if $TA$ executes first, and $TB$’s execution follows after $i$ intermediary transactions.

Holding value ($Hv$): is defined as the change in the averaged price of the given asset pair on the two exchanges, which represents the asset value change during the non-atomic execution period.

Borrowing Capacity ($Bc$): Refers to the total value that a borrower is allowed to request from a lending pool, given its collateral amount. For each collateral asset 𝑖 of a borrower, its borrowing capacity is defined in Equation 3.

$$ Bc =∑︁ 𝑉 𝑎𝑙𝑢𝑒 𝑜𝑓 𝐶𝑜𝑙𝑙𝑎𝑡𝑒𝑟al × LT𝑖 $$

Health Factor ($Hhf$): The health factor measures the collateralization status of a position, defined as the ratio of the borrowing capacity over the outstanding debts (cf. Equation 4).

$$ Hhf = BC / ∑︁ 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝐷𝑒𝑏𝑡t $$

MVI: Mininumal Profitable Viable Input

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