@scott_lew_is I am curious how you think a reasonable flow for a keeper system would work.
We have considered many options for an incentive system (hence we have a ripcord feature), but there are 2 problems with rebalancing for FLI products vs. traditional products (e.g. yield farming):
- Incentivizing normal daily rebalances is typically not an issue, as gas prices are low and they are not time-sensitive. In fact, the cost of daily rebalances is typically $100 per day per product and can easily be outsourced to a keeper system. However, Leverage Indices are all about safety and most of the cost occurs during times of high volatility where gas prices can spike to 1000 gWei+ and numerous rebalances need to happen in succession. Thus, you need incredible amounts of liveliness during these periods of time and normal keeper systems like Chainlink / Keeper network (based on fast gas oracles) don’t work too well.
- When it comes to these edge case scenarios where delevering is critical, it is often the case that we are willing to pay significant gas costs to prevent liquidation from happening to maintain brand and the products’ safety. Thus, we leave the attack vector that keepers can submit absurd gas prices during rebalances and drain the leverage index holders’ funds.
We are thinking about these issues and if you have a good design - we are game as we are VERY pro using keeper networks and doing gas splits totally on-chain.