Operator Reputation

Overview

Every Operator begins with a Reputation Multiplier (RM) of 1.00 upon whitelisting. This value is stored on-chain and updated automatically after each epoch based on verifiable performance metrics. The RM acts as a dynamic trust coefficient, scaling the Operator’s execution-credit ceiling.

Governance defines a global RM range of 0.50 ≤ RM ≤ 1.50, ensuring no Operator can gain or lose influence excessively within a single epoch.

Epoch Update Logic

Positive behavior increases RM toward the upper bound; failures or restoration events decrease it proportionally.

Positive Reputation Factors

No Liquidation or Slashing Events	Maintains solvency throughout epoch	+0.1
Exceptional Execution Efficiency	Generated surplus ≥ 5 bps on YODL Delegated USD Value	+0.01

Maximum positive adjustment per epoch: +0.11.

Negative Reputation Factors

Bounded Liquidation Event	Triggered when HF ≤ 1.0	−0.05
Non-Repayment of Vault Assets	Fails to restore by epoch end	−0.10 and temporary suspension
Restoration Reserve Usage	Slashing sourced from the protocol’s restoration reserve	−0.20

Maximum negative adjustment per epoch: −0.35.

Blacklisting & Recovery

• Auto-Blacklist:

  • RM = 0.50

• Re-Whitelisting:

  • Requires governance approval and audit of prior epoch data (off-chain).

  • Upon reinstatement, RM resets to 0.90 (probationary).

On-Chain Enforcement

• Update Frequency: Each time a relevant event occurs (liquidation, repayment, surplus). • Data Sources: Aggregated Orchestrator data. • Transparency: All RM adjustments and reasons are emitted on-chain for verifiability.

Governance Controls

Governance may: • Define minimum and maximum RM bounds • Tune per-event reputation adjustments • Pause RM updates during system-wide incidents