# The Game Logics

### Staking

$deposit = withdrawal$

Swaps between LOVE and KISS during staking and unstaking are always 1:1. The amount of LOVE deposited into the staking contract will always result in the same amount of KISS. And the amount of KISS withdrawn from the staking contract will always result in the same amount of LOVE.

$rebase = 1 - (LOVE_{deposit} / KISS_{outstanding})$

The treasury deposits LOVE into the distributor. The distributor then deposits LOVE into the staking contract, creating an imbalance between LOVE and KISS. KISS is then rebased to correct this imbalance between LOVE deposited and KISS outstanding. The rebase brings KISS outstanding back up to parity so that 1 KISS equals 1 staked LOVE.

### Bonding

$bondPrice = 1 + premium$

LOVE has an IV of 1 BUSD, which is roughly equivalent to 1 USD. In order to make a profit from bonding, HunnyDAO charges a premium for each bond.

$premium = debtRatio * BCV$

The premium is derived from the debt ratio of the system and a scaling variable called BCV. BCV allows us to control the rate at which bond prices increase.

The premium determines profit due to the protocol and in turn, stakers. This is because new LOVE is minted from the profit and subsequently distributed among all stakers.

$debtRatio = bondOutstanding / LOVE_{supply}$

The debt ratio is the total of all LOVE promised to bonders divided by the total supply of LOVE. This allows us to measure the debt of the system.

$bondPayout_{reservebond} = marketValue_{asset} / bondPrice$

Bond payout determines the number of LOVE sold to a bonder. For reserve bonds, the market value of the assets supplied by the bonder is used to determine the bond payout. For example, if a user supplies 1000 BUSD and the bond price is 250 BUSD, the user will be entitled to 4 LOVE tokens.

$bondPayout_{lpBond} = marketValue_{lpToken} / bondPrice$

For liquidity bonds, the market value of the LP tokens supplied by the bonder is used to determine the bond payout. For example, if a user supplies 0.001 LOVE-BUSD LP token which is valued at 1000 BUSD at the time of bonding, and the bond price is 250 BUSD, the user will be entitled to 4 LOVE tokens.

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