Yield Guard System
Last updated
Last updated
Yield Guard is a mechanism designed to protect bond providers from inefficient yield allocation across nodes in the THORChain network. Its main purpose is to prevent overbonded nodes from receiving additional RUNE delegations that would not generate yield effectively.
A node will be marked as Yield Guarded and hidden from listings when it meets any of the following conditions. All checks are only applied to nodes in Active status:
Overbonded Node
The node’s total_bond is equal to or greater than the network-defined optimal_bond.
Additional RUNE bonded to this node will not generate yield.
This prevents inefficient delegation to already saturated nodes.
Highest Slash Points in the Network
The node has the highest slash_points among all active nodes.
This node is likely to be churned out within 3 days due to poor performance or misbehavior.
Lowest Total Bond in the Network
The node has the lowest total_bond among all active nodes.
Since it ranks lowest by bond weight, it is expected to be churned out in the next rotation.
Oldest Active Node
The node has the oldest status_since timestamp among all active nodes.
Churns occur roughly every 3 days, and the oldest active node is rotated out.
Requested to Leave
The node has requested_to_leave = true.
The operator has explicitly signaled intent to leave the network, which will happen within ~3 days.
When Yield Guard is active on a node:
The node is hidden from public listings.
Users can still delegate, but it will be clearly marked as inefficient.
Once the node’s total bond drops below the optimal threshold again, it will automatically reappear in the listings.
✅ Ensures fair and efficient yield distribution across the network.
✅ Helps users avoid delegating to nodes that will soon exit the network.
✅ Encourages network decentralization by promoting underbonded and stable nodes.
✅ Protects bond providers from bonding to nodes that will not generate returns.
