ADD: Incentive Pendulum
Current
Nodes and LPs are always paid, even if the system becomes unsafe (staked assets equal/exceed bonded assets).
When the system becomes unsafe, LPs need to be encouraged to unstake in order to make the system safe again. Thus they need to be dis-incentivized to stake in order to protect the system.
Desired
Use an Incentive Pendulum:
- If bonded = 2 * Staked, then 67:33 split
- If Bonded = Staked, then 100:0 split (LPs don't get paid)
- 0% Staked, then 100% income to stakers.
This will ensure the following behaviour:
- If too many nodes bonding, they will divert capital to the pools
- If too many stakers staking, they will unstake and divert capital to nodes.
The equilibrium is 67:33 as designed.
The formula is:
poolShareFactor = (totalBonded + totalStaked) / (totalBonded - totalStaked)
(y + x) / ( y - x)
To Remove
The safety hardstop can now be changed from 90% to 100% (bonded = staked).
Edited by THORChain