stargatefi

Issue Statement

Pathway weights are currently static and do not reflect actual pathway transfer demand. This is problematic because high demand pathways may not have enough liquidity allocated to them, while low demand pathways are allocated unused liquidity.

Solution

• Update pathway weights on a monthly basis to reflect 30-day trailing pathway volume demand. This way, pathways with the most use are receiving an appropriate liquidity allocation.
• Here’s how the pathway weighting algorithm should work:
  • All connected pathways should receive a minimum 2% weight.
  • After the minimum pathway allocation, remaining allocation should be allocated to source pools based on their pro-rata trailing 30-day volume associated with the specific destination pool
• If this proposal is passed, it should be implemented immediately and then on a monthly basis going forward.
• This process should be managed by the Stargate protocol team. The team has the discretion to remove any known outliers within historical data in order to develop outputs that best reflect normal transfer activity.

Success

• Transfer UX is significantly improved because high demand pathways are allocated the appropriate amount of liquidity for transfers.

Timeline & Costs

• Model update: 1-2 hours
• Parameter setting: 2-3 hours