Rebalance

In Y Pool, there are times when a certain pool-supported token is swapped up and runs out, while this token is constantly being swapped in the other, which brings about a dire situation called an unbalanced pool on that chain.
The following flowchart gives a scenario in which an unbalanced pool arises due to a certain cryptocurrency's shortage, say, USDT, on one blockchain. Look at the unbalanced pool below where the USDT balance on each chain:
Ethereum: 1M
Polygon: 50M
USDT on Polygon & Ethereum chain and XY's Rebalance Mechanism
To tackle this imbalance, the community only needs to swap USDT on Ethereum to become USDT on Polygon. When you bridge USDT from Ethereum to Polygon, you have to deposit USDT into our Etherum pool and then receive USDT from our Polygon pool. In short, with merely a simple click, the community can maintain bridge health and operations, rebalance the liquidity on two chains as shown on the right of the flowchart above, and earn $XY rewards with ease.

It’s a win-win solution where our bridge can work more efficiently and the contributors get their corresponding rewards. Meanwhile, this mechanism is highly decentralized and engageable for all community members without relying on a centralized entity. So, after explaining how our rebalance works, let us now continue to explore a bit more as to why this mechanism is awesome - our Rewarding Mechanism.
Rewarding Mechanism
Our rewarding mechanism does a better job compared to current competitors and automated market makers (AMMs) for the following two reasons. 
First, we allow users to rebalance liquidity without them facing high slippage and impermanent loss (IL), beating major AMMs. We are able to do so because we have devised a formula using weighted arithmetic mean, as you can see on this slide, to quantify the imbalance in Y Pool and to reward the liquidity providers for their assistance in rebalancing. 
As for the second advantage of our rewarding method, we set up a reward-issuing mechanism to incentivize the community and simultaneously avoid token overissue. We set a strict cap of $XY distribution for each rebalancing epoch to prevent malicious activities from hogging $XY. In the meantime, we have secured enough rewards to incentivize the community to rebalance the pools.
Imbalance Formula
To give rewards to those who help rebalance the pools, we have a formula set to showcase how unbalanced the pools are:
Assumption
There are n different chains, with each having its pool-supported token
Token on each chain is coded as a1, a2, ... an
Maximum XY Token rewarded each time is coded as m
Formula
A=a1+a1+...+annA = \frac{a_1 + a_1 + ... + a_n}{n}A=na1​+a1​+...+an​​
balance ratio: R=a1∗a2∗...∗anAnbalance\ ratio:\ R = \frac{a_1 * a_2 *...* a_n}{A^n} balance ratio: R=Ana1​∗a2​∗...∗an​​
Reward
reward =(R2−R1)∗mreward\ = (R_2 - R_1) * mreward =(R2​−R1​)∗m
The total rewards given out per day will be strictly monitored and controlled to prevent the overinflation of XY Tokens.

YOGA

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Rewarding Mechanism