Separate Deposits per Provider

[Mikelle]

Separate Deposits per Provider

Summary

Implement a deposit system that allocates funds per provider rather than per block number to improve capital efficiency and user experience.

Description

Currently, deposits are split across different block numbers, which creates inefficiencies. This proposal suggests splitting deposits across different providers instead.

With this approach, if there are N providers and a bidder deposits N ETH, they can bid up to 1 ETH for each provider. Bidders can also allocate their deposits unevenly to prioritize larger providers.

Advantages

• Improved Capital Efficiency: More efficient than block-based splitting when there are fewer than 10-30 providers
• Reduced Redepositing: No need for frequent redeposits; only requires topping up when a provider's balance gets low
• No Deposit Windows: Eliminates the concept of "deposit windows" for bidders
• Intuitive Design: Easier for bidders to understand the deposit requirements
• Flexible Block Selection: Bidders can bid for any block number without window restrictions

Disadvantages

• Limited Scalability: Not optimized for ecosystems with very large numbers of providers