Multi Token Model
Last updated
Last updated
The previous model enables bApps to assign accounts’ weights for a specific token based on their obligations and associated risks. To extend this framework to scenarios where a bApp seeks security through multiple tokens, these weights can be combined to calculate the account’s final weight, In this case, the bApp should define a combination function tailored to its specific needs. Common examples include the arithmetic mean, geometric mean, harmonic mean, or any weighted variant.
For example, suppose a bApp uses tokens and , and considers to be twice as important as . Then, letting to be the weight of account in bApp for the token type , it could use the following weighted harmonic mean function:
In this context, the bApp should define a specific value for each token based on its risk tolerance. Also, an important observation is that, specifically for the non-slashable ETH form of capital, the participation ratio () should be used instead of the weight function (), as this type of capital carries no inherent risk.