Shares

DE-Shares are issued based on the proportion of liquidity that a liquidity provider (LP) has deposited into a strategy.

For the first LP, the share price is fixed to $100 (this is arbitrary, it could have been any number). So, for example if a user deposits 1 WETH and $1000, when the price of 1WETh is $2500 they are issued 35

DE-shares : (1000+2500)/100 = 35 (Assuming the management fees and protocol fee are 0%)

If it is some non-zero p%, the LP receives 35(1-p/100) shares and 35p/100 shares go to the strategy manager.

1. If you are the first liquidity provider in the pool

​       $(x_0,y_0)$: the capital user wants to deploy

​       $(p{x},p{y})$: the price of token0/token1 in USD

​       ${f}$ is the number of shares that will be minted, such that :

$${f = \frac{x_{0}p_{x} + y_{0}p_{y}}{100}}$$

​       User will get

$${f*(1 - \frac{p+m}{100})}$$

​        Shares

The share price then changes based on the value of the underlying assets and accumulated fee. So if the price of WETH goes up to $3000 and the strategy manager keeps all the liquidity in the form of WETH; the DE-shares in the strategy mentioned above would be worth $114.2857 (4000/35)

From then on shares are issued proportional to the value of assets an LP provides:

2. If you are not the first liquidity provider to the pool

​       ${F}$: extant shares of an existing liquidity management pool,

​       $(x,p)$: the current pool composition and

​       $(x_0,y_0)$: the capital user wants to deploy

​       $(p{x},p{y})$: the price of token0/token1 in USD

​       ${f}$ is the number of shares that will be minted, such that :

$${f = F*\frac{x_0p_{x} + y_0p_{y}}{xp_{x} + yp_{y}}}$$

​       User will get

$${f*(1 - \frac{p+m}{100})}$$

​        Shares