Slashing in DORs with Multiple Tenors

Similar to the Payout in DORs with Multiple Tenors, Operators are required to specify a breakdown of the Panelists’ stake that is slashable for each prediction tenor, This breakdown can be defined using percentages or determined through specific formulas.

Unlike payout mechanisms, Operators are generally encouraged to slash a smaller proportion of the Panelists’ stake for longer tenor predictions, acknowledging the greater difficulty and uncertainty of forecasts over extended periods. For instance, an Operator could use a 1/square root time-weighting method to determine the slashable portion of the Panelists’ total stake for each tenor.

If an Operator requires Panelists to predict DOR values for tenors of 1-day, 7-day, 14-day, and 30-day on a daily basis, the slashable portions might be allocated as follows:

This means if a Panelist’s prediction for the 1-day tenor falls outside the Operator-defined range (OR bands) after the rate is realized, up to 54.71% of their stake may be slashable. The actual slashed amount will follow the Operator’s slashing schedule. For instance, if a 10% slashing rate is applied to the 1-day tenor, the effective slashed amount would be 10% x 54.71% = 5.47% of the Panelist's total stake.