Stake Delegation

Solistic Finance Stake Delegation Strategy:

  1. Eligibility Criteria:

    • Validators must run MEV-enabled client

    • MEV commission rate must be ≤ 10%

    • Validators must not belong to the validator superminority

    • Validators must not run unsafe consensus modifications

  2. Performance Scoring:

    • Calculate average epoch credits for the last 20 epochs

    • Adjust the score based on the maximum validator commission during that period

    • Rank validators based on this adjusted performance score

  3. Delegation Pool:

    • Select the top 300 validators meeting the eligibility criteria

    • If fewer than 300 validators meet the criteria, include all eligible validators

  4. Stake Distribution:

    • Divide the total sSOL TVL equally among the selected validators

    • Target delegation per validator = sSOL TVL / 300

  5. Rebalancing (every 10 epochs):

    • Cap pool churn at 7.5% of TVL per cycle

    • Immediate exclusion criteria: a. 0 epoch credits (delinquent for an entire epoch) b. MEV or validator commission increased to > 10% c. Malicious behavior (e.g., tip stealing, vote lagging)

    • Performance-based rebalancing: a. Unstake up to 7.5% from ineligible and lowest-performing validators b. Redistribute unstaked amount to highest-performing validators up to the target delegation

  6. Stake Auction Marketplace Integration:

    • Implement a "maximum yield" parameter for each validator

    • Rank validators based on their "maximum yield" offers each epoch

    • Distribute stake to highest-yielding validators while respecting eligibility criteria and decentralisation constraints

    • Allow validators to set Solistic-specific commissions and share additional revenue sources

    • Implement a last auction price mechanism to optimise bidding efficiency

  7. Continuous Monitoring and Adjustment:

    • Regularly review and update delegation requirements and weights based on tokenholder voting

    • Communicate significant changes in advance

    • Monitor network performance and adjust strategy as needed to maintain optimal balance between decentralization, performance, and yield

  8. Transparency and Reporting:

    • Provide regular monthly updates to sSOL holders on delegation performance and strategy adjustments

    • Offer clear documentation on the delegation process and criteria for validators

PreviousStaking and RestakingNextOverview

Last updated