Thanks @remus for putting this proposal together and for driving the work on Simple DVT. I support increasing the Simple DVT Module stakeShareLimit from 4% to 4.3% – it looks like a reasonable and well-motivated change to help refill underfilled clusters and restore the module’s expected capacity.
I’d also like to highlight the relationship between stakeShareLimit and priorityExitShareThreshold for Simple DVT.
When the current parameters were chosen, priorityExitShareThreshold was effectively set so that the module only starts being prioritized for exit after roughly a 10% protocol TVL drawdown, while still preserving the intended target share of the module. The current parameters are:
stakeShareLimit = 4%priorityExitShareThreshold = 4.44%
which corresponds to:
priorityExitShareThreshold = stakeShareLimit / 0.9
This 10% buffer was explicitly introduced and discussed in the Staking Router / CSM upgrade announcement:
Staking Router: Community Staking Module upgrade announcement.
If stakeShareLimit is increased to 4.3% but priorityExitShareThreshold is left unchanged, this original 10% buffer logic stops holding: the point at which Simple DVT starts to be prioritized for exits would no longer match the design assumptions used when the parameters were introduced.
To keep the same 10% tolerance for protocol TVL drawdowns, I’d suggest updating priorityExitShareThreshold proportionally together with stakeShareLimit:
stakeShareLimit = 4.3%priorityExitShareThreshold ≈ 4.3% / 0.9 = 4.78%
So concretely:
priorityExitShareThreshold = 4.78% (478 bp)