Buffer Pool Mechanism
How Splashing Staking manages SEI deposits and withdrawals:
Deposit Flow: When a user sends SEI, the protocol’s dynamic distributor automatically allocates part of the funds to the buffer pool (for instant liquidity) and the rest to native staking (to earn rewards).
Instant Unstake: Users can request instant withdrawals from the buffer. The fee for instant unstaking is calculated based on the current buffer liquidity tier:
Lower buffer liquidity = higher fee
Higher buffer liquidity = lower fee
This tiered fee structure incentivizes users to keep the buffer well-funded.
Key Point:
The instant unstake fee is dynamic and depends on the buffer’s current liquidity tier. The less liquidity in the buffer, the higher the fee—encouraging users to maintain a healthy buffer for everyone’s benefit.
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