# π₯Friddy Coin Burning

## Burning

Assume that the merchant has decided to take their settlement from the backing, which triggers two calculations the first is the merchant gets the backing in USDC after deducting 4% from the settlement amount, and the result is called Settlement from Backing and that burns the same amount of Friddy coins from the backing create a model in latex that calculates Settlement from Backing and the remaining Friddy Backing

To calculate the Settlement from Backing, we can use the following formula:

$Settlement from Backing=MSβ(MSβ 0.04)Settlement from Backing=MSβ(MSβ 0.04)$

Where:

$MS$is the Merchant Settlement

Assuming the same values as before, we have:

$Settlement from Backing=40,000,000β(40,000,000β 0.04)β38,400,000Settlement from Backing=40,000,000β(40,000,000β 0.04)β38,400,000$

Therefore, the Settlement from Backing is approximately $38,400,000 USD.

To calculate the remaining Friddy Backing after the burning of coins, we need to subtract the Settlement from Backing from the Friddy Backing:

$Remaining Friddy Backing=FBβSettlement from BackingRemaining Friddy Backing=FBβSettlement from Backing$

Substituting the given values, we get:

$Remaining Friddy Backing=49,259,803.92β38,400,000β10,859,803.92Remaining Friddy Backing=49,259,803.92β38,400,000β10,859,803.92$

Therefore, the remaining Friddy Backing after the burning of coins is approximately $10,859,803.92 USD.

How much does the LP makes in profit, create a model in Latex then solve it.

Therefore, assuming LP deposits an average the same of 3000 USD per day and processes transactions for the entire month, they can make a profit of 900 USD per month for the same

To calculate the profit made by an LP, we need to consider the profit percentage they earn on each deposit and the number of transactions they can process using that deposit.

The profit percentage is given as 1% in this scenario. The number of transactions an LP can process depends on their deposit amount and the average transaction value of the merchant. We can calculate this using the formula:

Number of Transactions = Deposit Amount / Average Transaction Value

So, if an LP deposits a certain amount, they can process a certain number of transactions. Let's denote the deposit amount by D, and the number of transactions processed by N. Then we can write:

N = D / AT

Here, AT is the average transaction value of the merchant.

Now, the LP earns a profit on each transaction they process equal to the profit percentage (1%) of the average transaction value. So, the total profit earned by the LP is given by the formula:

Total Profit = N x (1% x AT)

Substituting for N, we get:

Total Profit = (D / AT) x (1% x AT) = (D / AT) x 0.01 x AT = 0.01 x D

Therefore, the profit made by the LP is simply 1% of their deposit amount.

If we assume that the LP deposited an average of 3000 USD per day, then the profit they make per day is given by:

Profit per Day = 0.01 x 3000 USD = 30 USD

Now, let's assume that the LP compounds their profits by adding it to their deposit for the next day. This means that the LP's deposit for the second day would be:

Deposit for Day 2 = Deposit for Day 1 + Profit from Day 1 = 3000 USD + 30 USD = 3030 USD

Similarly, the LP's deposit for the third day would be:

Deposit for Day 3 = Deposit for Day 2 + Profit from Day 2 = 3030 USD + 30.30 USD = 3060.30 USD

And so on.

We can write this in a general formula as follows:

Deposit for Day n = Deposit for Day (n-1) + Profit from Day (n-1) = Deposit for Day (n-2) + Profit from Day (n-2) + Profit from Day (n-1) = Deposit for Day (n-3) + Profit from Day (n-3) + Profit from Day (n-2) + Profit from Day (n-1) = β¦ = Initial Deposit x (1 + 0.01)^n

Here, the "Initial Deposit" refers to the LP's deposit on the first day, and "^" denotes exponentiation.

Therefore, if we assume an initial deposit of 3000 USD, then the LP's deposit on the 30th day (assuming they deposited every day) would be:

Deposit for Day 30 = 3000 x (1 + 0.01)^30 = 4841.81 USD

So, the LP would make a profit of:

Profit for Month = Deposit for Day 30 - (30 x 3000 USD) = 4841.81 USD - 90000 USD = 3941.81 USD

Therefore, assuming an LP deposits an average of 3000 USD per day and compounds their profits by adding it to their deposit for the next day, they can make a profit of approximately 3941.81 USD per month.

Last updated