Friends, I would like seek comment on a financial instrument for Tezos based on the delegation reward model.
Er, let’s just go to github: trustless-staking-token.md. There is also a sample implementation of the contract in SmartPy
I love it. Over-delegation; good bye. Automatic on-chain payouts; hello. Exit-scams; good bye. Flexibility; oh yes.
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Very slick but not sure about the part how its calendar based - in the event of a chain seizure, or just general lack of reliable 60 second blocks, a validator may would not get the opportunity to generate expected block rewards that they would depend on.
It is calendar based because the returns are meant to be tied to dates on a calendar. One configuration that comes to mind is a one-year term with monthly compounding periods.
Isn’t it too expensive for bakers? Say one currently has 10 rolls at a 10% fee, which would suffice for ~600k delegation space, then one would need to deposit and self-delegate 60k using this contract for coverage: that alone would kill the bakery space and set it in over-delegation state.
TST doesn’t need to be deployed by bakers, it can be deployed by any blockchain participant. It’s a completely trustless, decentralized design. Bakers would presumably offer a lower return via TST than they would for direct delegation.
