Rosen Bridge Investor Savings Account Pool

Proposed Idea: Rosen Bridge Investor Savings Account Pool

This idea introduces a new way for RSN token holders to invest and earn rewards in the Rosen Bridge ecosystem without the need to operate a Watcher Service - a new third party called Investors.

Concept

Investors can lock their RSN tokens in a dedicated savings account. This process increases the number of permits, enhancing the stability and throughput of the bridge. Permits generated by investors are randomly assigned to Watchers for bridge event observations.

Rewards Distribution

The rewards from bridge events are distributed among Watchers, Guards, and Investors. Investors receive the majority of these rewards, while Watchers, Guards, and potentially the Treasury receive a portion for their operational contributions.

Participation

Three ways to engage with Rosen Bridge:

  1. Simple Investment: Buy RSN for potential token value growth and support the ecosystem.
  2. Delegated Investment: Delegate RSN to a Watcher Service for a higher reward percentage.
  3. Active Involvement: Become a Watcher, run the service operations, and receive full reward exposure.

However, currently #2 doesn’t exist! The proposal recognizes the demand for a less technical and time-consuming way to participate in the Rosen Bridge system.

Addressing the Problem

Many potential participants may lack the technical skills, time, or financial resources to operate a Watcher. This solution offers a more accessible and fair alternative.

The Investor Pool Process

  1. Investors purchase RSN and open an Ergo wallet.
  2. They visit the app.rosen.tech bridge website and lock their RSN in a Savings Account Pool.
  3. Investors receive a Bridge Investor ID Token (BIID).
  4. Permits are created and assigned to Watchers in a FIFO manner.
  5. Watcher observe events like normal.
  6. Rewards from observed events are distributed, with Investors receiving the majority.
  7. Watchers observe the next event with their own permit like normal, receiving 100% of the rewards.

Investor permits thus increase rewards for all, and bring idle Watcher time more throughput.

Technical Feasibility

This concept is technically feasible using existing Rosen Bridge centric technology with some updates to the contracts.

Feedback and suggestions are welcome to refine this idea further!

4 Likes

I love this idea; I was even expressing my regret that due to the lack of necessary funds; I was unable to be a part of the Rosen Watcher team and felt missed out.

This is a perfect way to maximize the throughput of the bridge through extended permit access to watchers without the watchers having to shell out more funds to get more permits and lock them after locking away a significant amount for their watcher’s collateral.

Please folks support this and make it happen before Eth Bridge!

2 Likes

Logbook of feedback:

  • Consider safeguards so Watchers can’t unlock Investor RSN (permits) and vis-versa, need some inhibit logic.
  • Consider if Bad Actor Watchers who may not buy new permits and just ride off the coat tails of Investor permits, but also make sure Watchers get a sufficient reward to always financially incentivize becoming a Watcher for 100% rewards.
    • Need a fee sharing balance. Maybe this is a dynamic fee share based on Pool demand like duckpools? (Positive feedback control loop). Maybe Watchers get majority % or 50/50.
  • Consider Bad Watchers, should Investors be slashed too? Thinking yes to incentivize good actors with more rewards, and bad actors Investors will lose confidence and sell RSN bags (hurt Watcher bags).

I’ve started the development of something like what you mention. Our plan is around watcher abstraction. basically, we are making it really easy for the users to invest in watchers and they can do fragmented investment.
The flow is something like below this: Users can connect ADA/Erg wallet and pay what ever amount they want to pay with either ADA, Erg or RSN. we exchange to get the necessary funds and pool the funds together in order to create proper nodes. then we distribute the overall gains between the investors. this way you can invest with a minimal amount without getting into the technical side of running a watcher.

1 Like