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RE: LeoThread 2025-05-20 16:37

in LeoFinance6 months ago

Maintain the 2:1 TVL ratio and concentrate on capital efficiency for asset swaps between L1s. This is the approach—security remains the top priority.

"Note that there are two avenues:

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Maintain the 2:1 TVL and focus solely on capital efficiency for L1-to-L1 asset swaps.

  1. Allow market forces to determine the capital level, ensuring network security as long as over 33% of the vault validators are honest.

The market can reallocate funds toward trustworthy validators. Thorchain has repeatedly refined its design.

The validator set can act swiftly in response to an anticipated economic attack, which would necessitate a nine-figure capital infusion and months to compromise enough validators.

For instance:

  • Should validators observe suspicious bonding of funds attributed to misappropriated assets, they can freeze those funds and eliminate their associated tokens, effectively blocking funds linked to mixers.
  • Validators might

implement a minimum fee to prevent attackers from undercutting the market.

  • A registry of voluntarily verified validators could be established, where having one-third of validators verified would bolster security and encourage capital