Stakers

Stakers take on both a passive and an active role in the function of the protocol. They are key to vouching for respective pools - decreasing the risk level for lenders, as well as taking on the critical role of governance. Tokens bonded by Banking Nodes will also count as staked tokens.

Vouching

Vouching is the consequence of staking Tapi tokens in Banking Nodes. By staking your tokens you effectively vote and attest to the robustness of the Node you have elected to stake in. Stakers share in the gains and losses accrued by Banking Nodes, hence it is crucial to be scrutinous when deciding which Banking Node to stake. Stakers will receive a share of all revenues generated by the underlying pool and be subject to the same slashing penalties as those incurred by the node. Stakers can vouch for any pool by staking in it, and will immediately start to share in all generated revenues. To prevent gaming of the system via hopping between pools before revenue accrual, when tokens are withdrawn they will be subject to a 7-day unstaking period during which time no rewards will be accrued but slashing penalties can still be incurred.

Staked Assets to Liquidity Ratio

As more tokens are staked and delegated to Banking Nodes, the Nodes’ total staked value increases.

This serves to mitigate the risk towards lenders, the more tokens that are staked in a Banking Node, the higher the slashing rebate to lenders in the event of a default. With this, lenders can evaluate the ratio of staked tokens to pool liquidity and compute the SATL Ratio. The SATL Ratio is defined by the following formula:

Total Tokens Staked * Market Value of Tapi Tokens / Total Liquidity in Lending Pool. The higher this ratio, the higher the loss mitigation lenders will have in the event of a default. If this ratio reaches or exceeds 1.0, assuming 0 transaction costs,