Deposit shares are percentage figures that tell the nToken account how much of a user's total liquidity to deposit into each individual market. Deposit shares are represented as percentages and add up to 100%.
For example, if a currency's max market index is 3 meaning there are 3 active markets (3 month, 6 month, and 1 year) the deposit shares will allocate Prime Cash liquidity amongst those 3 active fCash markets.
Deposit shares allow Notional governance to direct liquidity to the maturities where there is the greatest end-user demand for borrowing and lending. For example, governance may decide on a set of deposit shares that would direct more liquidity to long-dated maturities and less liquidity to short-dated maturities, or vice versa, depending on relative demand.
Parameter Selection Considerations
Deposit shares should be selected to allocate sufficient liquidity to listed markets based on current and historical demand.