# 🎖️Favor

## What is Favor?

In the Pool Party game, players can use "Favor" to influence the win rate of a particular Pool. Favor is a mechanism that provides a bonus to the win rate of a Pool based on the ratio of one Pool's Favor to the other. The maximum bonus that Favor provides is 25%, which is only achieved when the ratio of one Pool's Favor to the other is infinitely high. In practice, this means that the maximum bonus is achieved when one Pool has Favor and the other Pool has none.

## Examples

If Pool 1 has 10 Favor and Pool 2 has 5 Favor, the Favor ratio is 100%, resulting in a bonus of 12.5%.

If Pool 1 has 13 Favor and Pool 2 has 10 Favor, the Favor ratio is 30%, resulting in a bonus of 3.75%.

## Restrictions

It is important to note that there are restrictions on the use of Favor. The maximum win rate that a Pool can have after applying Favor is 75%. This means that even if a Pool has a win rate of 60% and a Favor bonus of 20%, the resulting win rate will only be 75%. Moreover, in order for the opposing pool to restore the original win percentage of 60%, they will have to increase their Favor by 2x.

If one Pool has Favor and the other does not, the Pool with Favor receives the maximum bonus of 25%. However, as the Favorless Pool begins buying Favor, the Favor bonus is calculated according to the above formula.

## Price of Favor

The pricing of Favor follows a VRGDA (variable rate gradual Dutch auction). This means that Favor starts at a price of 5,000 $PARTY, and the protocol adjusts the price of Favor to target 200 sales per day. If there are no sales in 24 hours, the price of Favor will decay roughly 50%.

## Summary

In summary, Favor is a powerful tool that players can use to increase the win rate of a Pool. However, it is subject to restrictions, and there is a theoretical maximum bonus of 25%. The pricing of Favor follows a VRGDA, which ensures that its price is dynamically adjusted based on demand.

Last updated