DefiantDandelion on Nostr: Hypothetically it reduces the variance in the amount you get rugged yourself. If you ...

Hypothetically it reduces the variance in the amount you get rugged yourself. If you assume some distribution of mints that will eventually rug you, say 10%, and you use 10 mints on average one will rug you and if you distributed your sats evenly you loose 10% of what you held in mints. If you had all for sats in a single mint you would have a 10% chance of losing it all, but a 90% chance of keeping it all. The expected value is the same. But one strategy has less variance. And humans are usually risk averse so you like reduced variance. But the expected loss would still converge to the percentage of mints that will rug you either way.