## How is the rate calculated?

TWAP of the QASH and FTT rates for the month of March 2022. TWAP: Time weight average price

### TWAP: Time weighted average price.

Every time there is an execution on a market, we mark the time it was made, a how long until the next execution. Then we weight all the executions by multiplying the the price and the number of milliseconds that it remained the most recent transaction. For example the TWAP of only the two executions labelled in this diagram would be:

`1((8.344 * 45) + (8.310 * 287)) / (45 + 287) = 8.314608`

### Crossing Markets

There is no QASH/FTT market available to get a direct rate. Instead two different markets with a common currency can be used to work out a rate. This is known as a crossing currency.

Two different crossing pairs were used in the calculation:

• QASH/JPY, FTT/JPY

• QASH/USD, FTT/USDT

### Calculated Rate

For all the executions in the following markets in the time span `2022-03-01 00:00:00` to `2022-03-31 23:59:59` , we calculated the TWAP.

 Market TWAP Rate Crossing Rate FTT/QASH QASH/JPY `7.55945` `701.193` FTT/JPY `5311.18` `701.193` QASH/USD `0.0636135` `702.588` FTT/USDT `44.6053` `702.588`

It is in the user favour for the FTT/QASH rate to be lower, so that they receive more FTT for every QASH they hold. Because of this we use the rate `701.193`. Going a step further, we have rounded this down to `700`.

### The Swap Rate

When the swap is performed we use the QASH/FTT rate instead of the FTT/QASH rate for the calculation.

`11 / 700 = 0.00142857`

However is we use this number it results in a swap slightly above 700

`11 / 0.00142857 = 700.0007`

So again we round in the users favour

`11 / 0.00142858 = 699.995800`

### Early Swap Premiums

To incentivise swapping as soon as possible, we are offering a 20% premium on the swap rate for two weeks.

`10.00142858 * 1.2 = 0.00171429`