ELI5 the Incentive Pendulum.
18 Sep 2023, 16:41
ELI5 the Incentive Pendulum ⚖️
Block rewards & liquidity fees are split between Nodes & LPs depending on the ratio of security:liquidity to achieve economic security w/o capital inefficiency
Overbonded? Rewards skew to LPs
Underbonded? Rewards skew to Nodes
Now favoring LPs