Security and Game Theory

Stake-Weighted Honesty

Rational participants maximize utility by voting truthfully since penalties outweigh gains from false reporting.

Sybil Resistance

• Governance rights determined by USD stake, not number of addresses.

• Non-transferable share tokens prevent buying/borrowing governance power.

• Fragmenting stake provides no amplification and increases gas costs.

Attackers would need >66% of TVL to meaningfully manipulate outcomes, risking their own capital and future yields.

Snapshot Fairness

Snapshots fix stake values before voting, preventing late deposits/withdrawals from manipulating outcomes.

Collusion Resistance

Colluders need >66% stake to manipulate markets, economically infeasible since capital is at risk.