Concept of flexible reserves

Flexible Reserves

In order to solve the 28 days unlock time. Creampan introduces the flexible reserves concept. The flexible reserves concept is simple idea that contract holds certain percentage of CRO. When delegators want to unstake the CRO, the contract will use the reserves to send fund back to delegators, and then unstake the corresponding amount CRO. After 28 days, the unstaked CRO will be send to the contract to recover amount of the flexible reserves. By doing so, the delegators can unstake without any wait time. If the staking and unstaking rate is quite stable, the reserves ratio of flexible CRO amount to total CRO amount will be constant.

However, We should understand that the flexibility actually comes from slightly lower the staking yield compared to the yield with staking CRO fully. For example, the yield of holding ytCRO could be 6~7% if the reserve ratio is 25%. In our opinion, the 28 days wait time is more valuable than the 3~4% more yield. The reserve ratio can be determined in governance proposal.

In worst case scenario, if the flexible reserves is totally empty, users may still wait several days to allow ustaked fund sent to the contract.

Fee Rate Model

Creampan introduces a unstake fee rate model to stabilize the flexible reservers in the contract. The unstake fee is smoothly increase when the utilization rate is below a certain threshold. If the utilization rate is above the threshold, the unstake fee will increase sharply. Fee rate model helps to stable the flexible reserves. the adjustment of the fee rate slope and threshold can be determined in the governance proposal. The flexible reserve stability section explains the detail.