# Cauldrons

Cauldrons are a hyper-node — essentially a node made up of other nodes whose composition determines its reward rate. Different types of cauldrons, with varying rewards, can be produced with different combinations of potions. Combining these potions will create cauldrons with increased rewards, that vary depending on the type and number of potions used. Potions added to cauldrons are permanently locked. Cauldrons allow you to combine multiple potions together to boost rewards. The overall boost you receive will depend on the type and number of potions you add to a cauldron. Say you have ten spell-only potions, every potion you have can be used to create or add to cauldron. A spell only potion added to a cauldron will boost your daily rewards by 10%. So for a cauldron of 1 spell-only potions, your daily rewards rate would be 1.1% daily. For a cauldron of 5 spell-only potions, your daily rewards rate would be 1.6% daily, for 10 potions, 2.5% daily.

### Boost Calculations

The cauldron boost rate is determined by the weight of the potion added to the cauldron. Potions whose pools have a low tvl have a higher percentage boost on the cauldron when added. As the tvl of a pool increases the effective boost it has when added to a cauldron decreases. The boost rate will vary between 0-10% as a function of a potions weight. The only exception is spell only potions, which will always be assigned a weight of 10%. The formula to determine your boosted rewards from a spell-only cauldron is:
1.1^(p), where p is equal to the number of potions used to create the cauldron. The generalized formula to calculate the effect of boosts on a cauldron is the infinite product of the boosts of all given potions supplied:
R= ∏(1+w)^p, where R is the effective daily return, w is the weight of that particular potion, and p is the number of potions of that type added
w= (1-Ri)/Ri * .10 For example
A user has one spell only potion. w =10%
A user has a potion in an avax/usdc pool - equal to 5% of TVL. w = (1-.05)/.05*.10=2%
A user has a potion in a crv, weth, usdc pool - equal to 1% of TVL = w = (1-.01)/.01*.10=9.9%
By adding all of these potions to the cauldron, his effective daily return would be R=(1+.1)^1 * (1+.02)^1 * (1+.099)^1= 1.233078% daily Say for example that instead of just adding one crv, weth, usdc potion, he added 2 to the cauldron. Then his daily return would be R=(1+.1)^1 * (1+.02)^1 * (1+.099)^2= 1.35% daily As you can see, as the TVL of a given type of potion increases the effect of a potion on a cauldrons boost increases. This is to incentivize users to create potions whose pools have a lower tvl.

### Gamification

Users can only add to cauldrons once a certain xp is reached (based on time, compounding, and claim frequency). Claiming reduces xp. Initially users will only be able to add potions to a cauldron once every 30 days. However, this may be subject to change.