Tracking Staked Token Returns Using Linear Conversion Ratios
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Solution Overview
Problem
Tracking the value of wrapped staked crypto tokens and rewards earned on staked crypto tokens is challenging due to fluctuating conversion ratios, leading to exponential increases in principal and return amounts, which is computationally expensive and difficult to manage.
Innovation Solution
A technique for efficiently tracking rewards distributions for staked crypto tokens by calculating additional return amounts using an updated conversion ratio, allowing principal and return amounts to increase linearly rather than exponentially, thereby reducing computational complexity.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If traditional tracking methods are used to monitor wrapped staked crypto tokens and rewards, then accurate tracking of token values is achieved, but computational complexity increases exponentially
Solution Approach 1:
The patent segments the tracking process into distinct components: principal amount tracking, reward amount tracking, and conversion ratio application. By dividing the complex exponential tracking into separate manageable segments that update linearly, the system maintains accuracy while reducing computational complexity from exponential to linear growth.
Solution Approach 2:
The patent changes the parameters of the tracking system by introducing separate tracking variables for principal amounts and reward amounts, each updated using linear calculations based on conversion ratios. This parameter transformation allows accurate tracking without the exponential computational burden of traditional methods.
2Measurement precision
If conversion ratios are frequently updated to reflect market changes, then tracking accuracy is improved, but computational overhead increases
Solution Approach 1:
The patent applies preliminary action by pre-calculating conversion ratios and preparing principal and reward amount separations in advance. When market changes occur, the system can quickly apply updated ratios to pre-segmented amounts rather than recalculating everything, reducing computational overhead while maintaining accuracy.
Solution Approach 2:
The patent implements periodic action by updating conversion ratios and recalculating principal and reward amounts at discrete intervals rather than continuously. This periodic update mechanism maintains tracking accuracy while significantly reducing computational overhead compared to continuous tracking.
Data Source
AI summary
Methods, systems, and devices for tracking staked token returns are described. A custodial token platform receives a request to wrap an initial first amount of a first crypto token that is staked. The custodial token platform wraps the first amount of the first crypto token, resulting in a wrapped amount of a second crypto token. The custodial token platform detects a first trigger event while the user is associated with at least one prior principal amount and a prior return amount of the second crypto token. The custodial token platform determines an additional return amount. Determining involves calculating, using an updated conversion ratio, a first principal amount and a first return amount for the at least one prior principal amount, a second principal amount and a second return amount for the prior return amount, and combining the first return amount and the second return amount as the additional return amount.