I included this in the original post, but I think it’s not entirely accurate without further detail:
A ratio update allows the vault to have a higher ceiling on it’s multiplier. The Z tranches the vault holds will have higher multipliers, but on the flip side it will need fewer of them for a given SPOT supply.
Similarly, for minters–A user will receive more SPOT for their AMPL, and they will receive fewer Zs but each with a higher multiplier.
An easy way to think about this is that SPOT represents a “de-volatized” AMPL, and the vault takes the complementing side of this volatility position. So the multiplier on the vault is still proportional to the size of SPOT it’s supporting. A higher ratio allows the vault to support more SPOT in circulation, and therefore receive a higher multiplier when it can deploy more of its capital.
Hope that makes sense and apologies if there was confusion. The previous signal vote passed, but I am open to re-running if this changes the calculus for anyone.