Sherlock V2
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Payout Mechanism
Anytime a protocol is added to coverage, a nonstakers percentage is set. This nonstakers percentage would normally be fully allocated to Watsons in charge of this protocol, but it can also be used to pay for reinsurance, etc. in the future.
The amount that gets accrued to nonstakers is tracked at the individual protocol level. When a Watson's vesting ends at a specific protocol, a call can be made to transfer the nonstakers tokens for that protocol to an external contract. For now, the external contract is a wallet and the funds are disbursed manually to stakers, but that wallet will soon be replaced by a smart contract that pulls and allocates funds to specific Watsons or reinsurers completely trustlessly.
Last modified 1mo ago
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