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Delegation Strategy
Learn how the stake is distributed amongst the pool validators
How to get a delegation
A validator can join the Eversol pool if it demonstrates great performance and does not belong to the super-minority group (or Nakamoto coefficient). We evaluate the following validator parameters: APY, commission, skipped slot, last epoch stake size. Please check below a set of criteria required to get a delegation.
At the moment Eversol stake pool is using the Initial Strategy A (simplified). We plan the final Strategy B implementation at a later stage.
Initial Strategy A (simplified)
We select validators based on the following criteria:
- does not belong to the TOP-25 validators;
- last epoch stake size exceeds 1,000 SOL;
- commission is <= 7%;
- skipped slot < 10.
The obtained list of validators is being sorted once again, this time by APY. The final list includes the TOP-25 leaders (by the highest APY).
We run a script for each epoch to make sure that all selected validators meet the selected parameters.
Rebalancing the Stake
- 1.Rank 25 validators by stake size.
- 2.Assign target share for each validator based on a simple formula: Target Stake Share = Validator Rank / (Sum of Validators Ranks).
- 3.Remain target share unchanged for next 60 epochs (~180 days).
- 4.Monitor validators' performance to avoid stake allocation to inactive ones or those whose performance would decrease drastically.
Strategy B: Performance Score
If the validator demonstrates good performance and does not belong to the group that concentrates 33.3% of the total SOL stake (minimal security group, or MSG), then it gets scored.
We have been developing a delegation strategy that will distribute the stake amongst the pool validators based on their performance score.
Performance Score Calculation
- 1.Score by validator recalculates each epoch based on validator's current vote credits: initial score = vote credits
- 2.We target active validators with a minimum balance of 100 SOL staked, hence all validators below that threshold get 100% penalized.
- 3.Validators commission impacts the stake pool's final score: score after fee = initial score * (100% - validator fee)
- 4.The main parameter that impacts the initial score is the mean position based on the vote rate. Vote rate measures how many slots that a validator successfully votes on. Calculating mean position: mean rate = sum of vote credits / number of validators
- 5.Calculating Tilt function:Tilt = (validator vote credits - mean rate) * 100
- 6.If the validator vote rate is below the mean position, then the tilt is equal to 1. If it is above the mean position, then it adds to a final score:Final score = tilt * Score after Fee
- 7.Finally, we calculate delegation shares by validators:Validator share = final score / sum (final validators scores)
Rebalancing the Stake
The stake pool will rebalance validators' shares according to the final score they'd receive based on the final delegation strategy.
Last modified 8d ago