CIP - DEFI apps delegation guidelines for pool decentralization


CEXs are concentrating more and more of people’s tokens ownership, getting their voting power and delegating to their own big central pool farm.

Define some guidelines for Defi to help the pool network decentralization

Defi could solve 2 current problems:

  • the people’s tokens centralization in exchanges by taking back some CEX’s liquidity.
  • the pool farms centralization by delegating liquidity in a ‘fair’ manner.

Each Defi app is likely to take custody of huge liquidity, that will have to be delegated according to the app implementation.
It could be a fair delegation to the pool community, helping the block production decentralization, it could be an unfair delegation in favor a central pool farm (Like Binance does today).

Set some guidelines to help Defi apps to implement fair delegation.

PROPOSALS (draft ideas):

  • random delegation
  • dynamic delegation based on pool’s performances

I am not a smart contract specialist, so I don’t know what are exactly the contract possibilities. Please advise.