Mining System

Overview

A decentralized keeper network is needed to run synthetic trading bots, since the smart contracts can’t be called automatically. To create this keeper network, Tradegen allows users to set up nodes that updates a trading bot’s state with the latest oracle price once per interval (based on the strategy’s timeframe).

Running a Node

Users can operate a node by minting an NFT that represents their status as a miner. A fixed amount of TGEN is needed to mint the NFT, which gets locked in the NFT until the user no longer wishes to operate a node. Part of the locked TGEN is returned to the protocol if the miner misses an interval, creating a disincentive for poor performance. If the locked TGEN falls below a certain threshold, the miner will no longer be able to mine.

Trading bot owners can choose a miner to maintain their trading bots. Each miner has a rating that measures how reliable they are. A miner’s rating changes over time, depending on how often they update subscribed trading bots within the window for each interval. Missing an update will lower a miner’s rating, in addition to slashing their stake. Trading bot owners will naturally choose miners with a higher rating, so miners are encouraged to perform well so trading bot owners are more likely to select them.

Mining Rewards

Mining rewards are released using a halvening schedule, with each cycle lasting 6 months. The Token Allocator receives a fixed amount of TGEN during the token generation event, so no new TGEN will be minted for mining rewards. Rewards are sent to a pool every 5 minutes, based on the release schedule. Miners can claim their share of rewards from the pool based on their weight. A miner’s weight is calculated by the weight of each strategy that the miner manages. The weight of a strategy is determined by the strategy’s assets under management and the number of investors in the strategy.

System Architecture