To establish a system that assumes single-asset staking, the logic surrounding pool tokens is overhauled. The elimination of insurance vesting, outlined above, eliminates the non-fungibility of user stakes and provides the foundation from which the new pool token logic is constructed.
Single-sided pool tokens are no longer explicitly linked to the sum of the pool reserve balances. However, their value must still be determined as a share of something. For the purpose of this document, the pooled value is referred to as the “staked amount”, which is necessarily treated entirely independently of pool reserves. To achieve this, the protocol must maintain a separate ledger for staked amounts, that is updated with every swap to account for the accumulation of fees.
The system is easiest to understand assuming it is already established; exploring the transition from the current system to the new one, or the transformation of a pool following a whitelisting decision are considerably more involved. Therefore, the following sections are organized according to their relative intuition. First, the system is described assuming the establishing steps have already occurred, without any attention paid to what these steps were, or how they were done. Then, the more onerous challenge of addressing the establishing steps are handled in their own section.