Basket composition

Basket Target Weight Calculation

Consider a basket comprising 3 LSTs: aSUI, bSUI and cSUI

Target weight for each LST is determined as follows:

Definitions:

$w_i$ : Target weight of $LST_i$
$TotalStakedSUI_i$ : Total amount of SUI backing $LST_i$ protocol
$\alpha_i$ : Risk Coefficient of $LST_i$ protocol (subject to governance voting)

Last updated 1 year ago

Basket Target Weight Calculation

Consider a basket comprising 3 LSTs: aSUI, bSUI and cSUI

Target weight for each LST is determined as follows:

$w_a = TotalStakedSUI_a *\alpha_a$

$w_b = TotalStakedSUI_b *\alpha_b$

$w_c = TotalStakedSUI_c *\alpha_c$

Definitions:

$w_i$ : Target weight of $LST_i$

$TotalStakedSUI_i$ : Total amount of SUI backing $LST_i$ protocol

$\alpha_i$ : Risk Coefficient of $LST_i$ protocol (subject to governance voting)