Last updated 1 year ago
Consider a basket comprising 3 LSTs: aSUI, bSUI and cSUI
Target weight for each LST is determined as follows:
wa=TotalStakedSUIa∗αaw_a = TotalStakedSUI_a *\alpha_awa=TotalStakedSUIa∗αa
wb=TotalStakedSUIb∗αbw_b = TotalStakedSUI_b *\alpha_bwb=TotalStakedSUIb∗αb
wc=TotalStakedSUIc∗αcw_c = TotalStakedSUI_c *\alpha_cwc=TotalStakedSUIc∗αc
Definitions:
wiw_iwi: Target weight of LSTiLST_iLSTi
TotalStakedSUIiTotalStakedSUI_iTotalStakedSUIi: Total amount of SUI backing LSTiLST_iLSTi protocol
αi\alpha_iαi: Risk Coefficient of LSTiLST_iLSTi protocol (subject to governance voting)