Huge thanks to @Mol_Eliza for the co-authoring and review
This is a supplementary note for the original CSM proposal
The main goal of this note is to outline one of the possible approaches to capital efficiency estimation. Thanks to @micho for pointing out the importance of these calculations during LidoConnect in Istanbul.
To have a metric to compare bonding designs, sizes, and fee structures for different protocols, let's consider two metrics: “rewarded capital” (RC) and “rewarded capital multiplier” (RCM).
RC
RC (rewarded capital) signifies the equivalent capital required for vanilla solo-staking to yield commensurate rewards compared to employing a staking provider solution.