Time Weighted Lock (TWL)
Time Weighted Lock
Last updated
Time Weighted Lock
Last updated
The Time Weighted Lock (TWL) system is a dynamic liquidity escrow mechanism designed to adapt to economic demand. This mechanism is designed to determine the true market value of both liquidity and time by leveraging structured "buckets" with its own fixed escrow arrangement with corresponding output ratios of sALTO for the user’s input of ALTO.
The evolution TWL offers lies in its responsiveness to demand or lack thereof: if the total amount of ALTO locked in a given bucket during the epoch increased against the preceding epoch, the lock duration for that bucket will extend by one additional epoch in the following epoch (up to a ceiling). Conversely, if the total amount of ALTO locked in a given bucket were to decrease, the required lock time shortens by one epoch (down to floor). This is known as the -1,+1 system.
Users with existing locks may lock into a different bucket of a longer duration at any time.
Each bucket moves independently. The -1,+1 system means that if for example, Bucket 1 requires a 1 week lock- 100,000 ALTO is locked into Bucket 1 on Week 1, and 150,000 ALTO is locked into Bucket 1 on Week 2, Bucket 1 will increase to a 2 week lock requirement on Week 3. In Weeks 1 and 2, the buckets will stay at their initial setting.
Number of buckets
4
Ceiling
52/52/52/52 Epochs
Floor
1/2/3/4 Epochs
Modulation
-1/+1
