diff --git a/docs/validator-tickets.md b/docs/validator-tickets.md index a8a4498..3039221 100644 --- a/docs/validator-tickets.md +++ b/docs/validator-tickets.md @@ -78,6 +78,8 @@ Assuming they deposited 28 VTs, after 28 days of validating, the NoOp's validato ### Pricing Validator Tickets +Prices of Validator Tickets are secured and posted by [RedStone Oracles](https://redstone.finance/). The VT Oracle module is fully automated and data is delivered every 12 hours or if the deviation is 10% on MEV payouts or 5% on consensus rewards. The contract can be seen on the ValidatorTicketPricer contract events page [here](https://etherscan.io/address/0x9830ad1bd5cf73640e253edf97dee3791c4a53c3/advanced#events). The pricing module is the heart of the properly functioning Puffer system. Puffer’s stability is based on the correctness of the price from RedStone. + During Puffer's Phase 1, VT prices will be posted by the [Guardians](/protocol/guardians#). The prices are calculated with the following formula, where $R_{expected}$ is the expected daily validator revenue based on historical consensus and execution rewards, and $D$ is a discount rate:
@@ -113,4 +115,4 @@ With a combination of just 1 ETH collateral, favorable NoOp incentives, and Puff - **Increased Capital**: VTs requires more upfront ETH compared to just having a bond. Yet, this concern is substantially offset as Puffer offers the lowest bond ($1$ ETH) among all permissionless LSPs, making the added ETH requirement relatively small in the overall context. -- **Pricing VTs**: Although PoS rewards maintain stability, they are influenced by market dynamics (execution rewards) and fluctuations in the validator set size (consensus rewards). However, since VTs are equal to a validator-day and are repriced daily, volatility is mitigated. Additionally, VTs are liquid and can be traded on the secondary market. \ No newline at end of file +- **Pricing VTs**: Although PoS rewards maintain stability, they are influenced by market dynamics (execution rewards) and fluctuations in the validator set size (consensus rewards). However, since VTs are equal to a validator-day and are repriced daily, volatility is mitigated. Additionally, VTs are liquid and can be traded on the secondary market.