ZEIP: 61
Title: Mixed assets in "market" operations
Author: 0x Core Team
Type: Standard Track
Category: Core
Status: Final
Created: 2019-10-29
Discussion: #61
Summary
This proposal outlines the initial parameters for stake-based liquidity incentives. Parameters are upgradeable via a vote by the ZRX token holders. See ZEIP 31 for the original stake-based liquidity incentives proposal, and the 0x Staking Specification for the most up-to-date information on architecture, implementation and usage.
Specification
Parameter
Value
α (alpha)
2/3
Epoch Length
10 days
Minimum Stake
100 ZRX
Delegated Stake Weight
90%
Protocol Fee Multiplier
150,000
Rationale
α (alpha)
This is a term in the Cobb-Douglas formula that dictates the weight of fees versus stake when computing liquidity rewards. By choosing a weighting of 2/3 we are giving a greater weight to fees over stake.
Epoch Length
All processes in the system are segmented into contiguous time intervals, called epochs. Protocol fees accumulate throughout an epoch and are distributed when the epoch ends. Stake remains delegated (or undelegated) for the duration of an epoch.
This parameter is the minimum number of seconds between epochs. Short epochs are open to abuse (like griefing) and long epochs aren’t great for UX.
Minimum Stake
This is the minimum amount of stake required for a pool to collect rewards. It should be low enough to mitigate griefing through dust pools, but not so high that it creates a significant barrier to entry.
Delegated Stake Weight
We incentivize makers to stake their own ZRX by lowering the weight of ZRX delegated to their pool. This mitigates monopolization of staking pools, as it is always more profitable for a maker to create their own pool than delegate to a centralized pool.
Protocol Fee Multiplier
The protocol fee per-fill is this parameter times the transaction gas price. The value chosen is roughly equal to the average gas cost of filling an order on 0x.
Preamble
Discussion: #61
Summary
This proposal outlines the initial parameters for stake-based liquidity incentives. Parameters are upgradeable via a vote by the ZRX token holders. See ZEIP 31 for the original stake-based liquidity incentives proposal, and the 0x Staking Specification for the most up-to-date information on architecture, implementation and usage.
Specification
Rationale
α (alpha) This is a term in the Cobb-Douglas formula that dictates the weight of fees versus stake when computing liquidity rewards. By choosing a weighting of 2/3 we are giving a greater weight to fees over stake.
Epoch Length All processes in the system are segmented into contiguous time intervals, called epochs. Protocol fees accumulate throughout an epoch and are distributed when the epoch ends. Stake remains delegated (or undelegated) for the duration of an epoch.
This parameter is the minimum number of seconds between epochs. Short epochs are open to abuse (like griefing) and long epochs aren’t great for UX.
Minimum Stake This is the minimum amount of stake required for a pool to collect rewards. It should be low enough to mitigate griefing through dust pools, but not so high that it creates a significant barrier to entry.
Delegated Stake Weight We incentivize makers to stake their own ZRX by lowering the weight of ZRX delegated to their pool. This mitigates monopolization of staking pools, as it is always more profitable for a maker to create their own pool than delegate to a centralized pool.
Protocol Fee Multiplier The protocol fee per-fill is this parameter times the transaction gas price. The value chosen is roughly equal to the average gas cost of filling an order on 0x.
Copyright
Copyright and related rights waived via CC0.