💠The Foundry

Providing liquidity to access foundry advantages

This is a gameplay feature where players are rewarded for providing liquidity to the Alloy Token and AVAX pair.

Players always retain custody of their LP tokens. Once connected to the Alloy Space game, LP tokens are recognized in a players' wallet. Do not send your LP tokens anywhere.

Players holding LP tokens make a choice every 3 days on how they would like to be awarded. There are currently two choices from within The Foundry, and only one can be utilized at a given time:

Smelter Protection - Halt Part Degradation of a subset of collected Alloy Parts

Smelter Extraction - Get proportionally rewarded from a pool of smelting Alloy Token

Smelter Protection

The Purity assigned to an Alloy Part degrades slowly when collected as an NFT into a player's inventory. When this decreases, so will the combined Alloy Value of the Alloy Construct that the part is assembled into.

The Alloy Value of individual Alloy Parts has an impact on the Alloy Construct in two ways:

1. Selling - When choosing to sell the Alloy Construct, the Construct Alloy Value determines the Offer Price for that Alloy Construct. A higher Alloy Value results in a higher Offer Price.

2. Collecting - When choosing to collect the Alloy Construct (by rejecting the Offer Price), the Alloy Value helps determine the Construct Grade of the newly minted Alloy Construct. A higher Alloy Value results in a higher grade, which also demands a higher price in the Alloy Market.

Construct Alloy Value and Construct Grade will have an undisclosed impact on future gameplay.

If a player chooses to activate the Smelter Protection, a protection formula will apply to a number of Alloy Parts currently held in the player's inventory. After a 2-day cooling period, the parts will be protected from degradation for 3 days, and then the cooling period starts again.

The greater the % of the LP that a player holds (excluding the Alloy LP allocations), the greater the proportion of a player's inventory they can protect. This scales by the square root of LP % * 100, instead of linearly, which benefits smaller LP Providers.

NUMBER OF PARTS PROTECTED = ROUND( SQRT( % total LP provided * 100 ) * PROTECTION MULTIPLIER ) / 100 * ( # PARTS IN INVENTORY ) + 1

Smelter Protection Example table (with protection multiplier = 5):

Player	# Parts Inventory	% of total LP * 100 (excluding Alloy LP)	sqrt	round(sqrt * PM) / 100	# parts to protect
1	63	50.000	7.07107	35%	24
2	25	5.000	2.23607	11%	4
3	53	3.000	1.73205	9%	6

Smelter Extraction

When part Processing fails for any player in the game, a small tax of 4.5% of the recycle amount gets sent to the Foundry smart contract.

By activating this option, those who help run The Smelter (by holding LP) get to keep the extracted Alloy Token. The Smelter extracts the token every 3 days and proportionally rewards those who held LP for those 3 days. A snapshot of the LP position is taken at the moment of distribution.

Retooling

Once Smelter Extraction is activated, there is a retooling period of 9 days to begin extraction from the Smelter.

Anytime a player removes their LP, the retooling period is again required.

Refining & Cooling

After the Retooling period, there is a 3-day period of Refining followed by a 2-day period of cooling.

Refining - This is the 3-day waiting period to collect the extracted Alloy token. During this period, the other Foundry option cannot be selected. Removing LP tokens at any time during this period immediately makes award collection impossible (even if immediately added again).

Cooling - This is the 2-day waiting period to begin Refining again.

In other words, when a player is awarded after 3 days, they will not be able to extract again for 2 days. A player can collect from the taxes in the Smelter every 5 days - 3 days waiting to extract, 2 days off.

The extraction formula is as follows for a Foundry pool containing $X$ total Alloy token at time of distribution for $N$​ LP providers, having 100 * LP % shares of $L_i,\ i=1\ldots N$​.

Alloy token reward for $i$th LP provider: $X_i = \frac{\sqrt{L_i}}{\sum_{j=1}^N \sqrt{L_j}} X$

​We will also include a throttle variable on the Smelter in case this becomes a source of price instability.