Dexponent Litepaper v0.99
OverviewLiquidity Providers
  • Abstract
  • Ideation
  • Protocol Design
    • Farms / Investment Strategies
    • Stakeholders
    • Incentivising Performance
    • Interoperability & Scalability
    • Transparency and Security
  • Tokenomics
    • Supply Dynamics
    • Sustainability Mechanisms
      • LP Rewards & Maturity
    • Staked $DXP ( $vDXP)
  • Sharpe Consensus
    • Farm Scoring Algorithm
    • Byzantine Fault-Tolerant Consensus
    • Algorithmic Benchmarking System
    • Proof of Return (PoR) Mechanism
  • Use Cases
    • Community-Verified DeFi Index Fund
    • Strategic Asset Management
    • AI-Agentic Fund of Funds
  • Future Scope
  • References
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  1. Sharpe Consensus

Proof of Return (PoR) Mechanism

PreviousAlgorithmic Benchmarking SystemNextUse Cases

Last updated 1 month ago

The PoR system underpins the benchmarking framework to ensure fair, transparent and verifiable reward distribution. A brief overview of how this works is as follows:

  • Risk-Free Rate Integration: Incorporating risk-free rates to maintain realistic yield expectations.

  • Dynamic Market Adjustments: Using real-time data to dynamically adjust benchmarks.

  • Token Performance Metrics: Evaluating metrics like APY, APR, and ROI to assess strategy efficiency.

Verifiers use statistical models to identify deviations and implement corrective measures. This enhances the system’s ability to process complex datasets and generate actionable insights to ensure benchmarked and transparent returns.