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

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