Basket Target Weight Calculation
Consider a basket comprising 3 LSTs: aSUI, bSUI and cSUI
Target weight for each LST is determined as follows:
waβ=TotalStakedSUIaββΞ±aβ
wbβ=TotalStakedSUIbββΞ±bβ
wcβ=TotalStakedSUIcββΞ±cβ
Definitions:
wiβ: Target weight of LSTiβ
TotalStakedSUIiβ: Total amount of SUI backing LSTiβ protocol
Ξ±iβ: Risk Coefficient of LSTiβ protocol (subject to governance voting)
Last updated