[Transmuter] Rebalancing Incentive Design

[iboss-ptk]

The idea is to have a way for the asset that is closer to any limit or close to 0 has an incentive to reduce / increase its composition in the pool. That can be done in any means:

• exit pool (aka. swap from alloyed) with limit reaching asset
• join pool (aka. swap for alloyed) with other asset
• swap from other underlying asset to the limit reaching one

@sunny :

Not just close to a limit, but also close to 0, to increase its composition in the pool. As an example, let’s say that the allowed range of nBTC in the BTC alloy is 0 - 10% That means it CANNOT go above 10% or below 0% (obv) But we want to have a “target range” of say 3-7% This means that above 7% it should charge fees if you move it farther away from 7% But also below 3%, it should charge fees if you move it close to 3% These fees should increase the further you are from the target range

example reference:

https://stargateprotocol.gitbook.io/stargate/v/user-docs/tokenomics/protocol-fees

Additionally, given that the actual risk comes from bridge/chain rather than the exact denom. having bridge/chain tags and having limits/caps for them would make more sense than specific denom caps as the actual risk coming from bridge/chain vulnerability rather than the specific denom itself.