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[RedStone] Update validator-tickets.md (#39)
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Adding RedStone ticket system
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Kazik435 authored Sep 10, 2024
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Expand Up @@ -78,6 +78,8 @@ Assuming they deposited 28 VTs, after 28 days of validating, the NoOp's validato


### Pricing Validator Tickets
Prices of Validator Tickets are secured and posted by [RedStone Oracles](https://redstone.finance/). The VT Oracle module is fully automated and data is delivered every 12 hours or if the deviation is 10% on MEV payouts or 5% on consensus rewards. The contract can be seen on the ValidatorTicketPricer contract events page [here](https://etherscan.io/address/0x9830ad1bd5cf73640e253edf97dee3791c4a53c3/advanced#events). The pricing module is the heart of the properly functioning Puffer system. Puffer’s stability is based on the correctness of the price from RedStone.

During Puffer's Phase 1, VT prices will be posted by the [Guardians](/protocol/guardians#). The prices are calculated with the following formula, where $R_{expected}$ is the expected daily validator revenue based on historical consensus and execution rewards, and $D$ is a discount rate:

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- **Increased Capital**: VTs requires more upfront ETH compared to just having a bond. Yet, this concern is substantially offset as Puffer offers the lowest bond ($1$ ETH) among all permissionless LSPs, making the added ETH requirement relatively small in the overall context.

- **Pricing VTs**: Although PoS rewards maintain stability, they are influenced by market dynamics (execution rewards) and fluctuations in the validator set size (consensus rewards). However, since VTs are equal to a validator-day and are repriced daily, volatility is mitigated. Additionally, VTs are liquid and can be traded on the secondary market.
- **Pricing VTs**: Although PoS rewards maintain stability, they are influenced by market dynamics (execution rewards) and fluctuations in the validator set size (consensus rewards). However, since VTs are equal to a validator-day and are repriced daily, volatility is mitigated. Additionally, VTs are liquid and can be traded on the secondary market.

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