Summary
Considering the recent update to the ezETH reward distribution, which now incorporates accrued EIGEN rewards that are sold and compounded into ezETH, we propose updated CAPO parameters.
CAPO
Given that the compounding and distribution of EIGEN rewards represented a 0.21% daily yield, which annualizes to over 70% APY, we recommend using a 14 day MINIMUM_SNAPSHOT_DELAY to smooth the yield. Following our CAPO methodology, we also recommend setting the maxYearlyRatioGrowthPercent at 10.89%.
| maxYearlyRatioGrowthPercent | ratioReferenceTime | MINIMUM_SNAPSHOT_DELAY |
|---|---|---|
| 10.89% | monthly | 14 days |