Guardrails

To ensure that the auction price's balance is not too heavily tilted one way or the other, guardrails are implemented.

Auction bid limits

Operators may not set their discount rate above 15%. In this way, we ensure that even a sudden influx of stakers will not disrupt functioning of the protocol.

Backup node operators

Should the auction set run dry, there must be a backup mechanism to ensure that new strategy clusters can still be opened. For this, we collaborate with a series of permissioned node service providers.