My current understanding is that delegation rewards are based on a snapshot taken at the beginning of each epoch, every five days.
Given an ecosystem of DeFi like what is going on in Ethereum, what is stopping people from borrowing large amounts of ADA, delegating to a pool and then pulling it out right after the snapshot?
I imagine the price of borrowing would surge during this short period, or the price would fluctuate to balance this out. Nevertheless, it would introduce a lot of price-noise at the epoch boundaries?
Am i missing some information?
Should the rewards perhaps be based on a weighted average of the stake of the previous epoch?