Mechanism Design

Each network has a $BUDS farm, which rewards a dynamic APR% on deposits and an instant payout for successful raids - both depending on the saturation factor (SF) of the farm.

Saturation Factor is defined as:

SF = Local Staked $BUDS/Global Staked $BUDS

SF ∝ 1/APR%

At equilibrium, SF^E = 0.2 (given there are 5 farms)

APR% has a decay factor of λ as SF deviates from SF^E towards either 0 or 1.

This ensures that farms which are raided disproportionately cease to remain lucrative for raids. Instead, the high APR% rewards attract yield farmers onto the network.

Inversely, any farm which becomes disproportionately large, will result in dilution of $BUDS emissions on that network - while making it highly profitable to raid that network's farm.