The PolyShield emission rate is calculated based on a curve with input from the current token price in USD.
The curve operates within a price range. Outside this range the emission rate will be either 100% (below bottom price) or 1% (above top price). The initial range will be set to 1 USD bottom and 100 USD top.
When the price of SHI3LD leaves this range the team will adjust the range accordingly. For example it might make sense to have the range between 50 and 150 USD.
The curve equation is below and starts with a curve rate of 5.
Calculation of the emission rate %
The token price is calculated by comparing the balance of the SHI3LD/USDC LP held by the tokens SHI3LD and USDC on QuickSwap.
The graph below shows how the curve affects the emission rate depending on the token price within the specified range. As the price increases, the emission rate drops to a minimum of 1% of 1 SHI3LD per block.