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Alpha Creators Pool
Devan Purhar edited this page Sep 13, 2019
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The Alpha Creators Pool creates long-term incentives to allow a decentralized group to maximize yield on a large pool of capital. We aim to maximize the total reward:
total_reward = alpha * fee_percent * capital - security_budget
There are several key actors:
- Opportunity Contract Coders: There's an ongoing need for novel smart contracts that can earn yield. The value of each new contract is the amount they grow the total_reward pool. We will create inflationary funding to reward Opportunity Contract Coders for their contribution.
- Capital Suppliers: A large pool of capital attracts coders of yield-generating opportunities, allowing them to capture the value of their efforts without fundraising. As capital grows, it dilutes yields. Need to determine whether we need to incentivize capital suppliers or yields speak for themselves.
- Third-party validators & Security Researches: The security budget. Responsible for running the oracles that monitor yields, allocate capital, and providing bounties for bugs. It's critical that we have sufficient decentralization and security.
Inflation funding allows us to reward Opportunity Contract Coders in proportion to their contribution.