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:

• $w_a = TotalStakedSUI_a *\alpha_a$
• $w_b = TotalStakedSUI_b *\alpha_b$
• $w_c = TotalStakedSUI_c *\alpha_c$

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)