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What is Quantitative Rewarding (QR) for Restaking and Eigenlayer?
Manifold Finance Team
Oct 28, 2024
Quantitative Rewarding (QR)
The problem for LRTs is that they need to track ETH exiting the EigenPod and treat rewards generated from staking vs exited validators differently from the protocol contracts. For example, many LRTs take a protocol fee (e.g. 10%) from the rewards generated from staking and should NOT take this same fee from ETH leaving the EigenPod due to a validator exit.
- Increase rewards when service level decreases to adjust supply.
- Decrease rewards when service level increases to restore payments.
- Ensure rewards do not grow exponentially by setting initial rewards (R(0)) appropriately.
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