Automatic Staking Optimization
Last updated
Last updated
The target of the delegation strategy is to provide the best yield for the stakers while making NEAR more decentralized and censorship-resistant.
When the users stake $NEAR on LiNEAR Protocol, the automatic staking optimization determines which validators to be selected and how many $NEAR should be staked ideally.
Eligibility rules to receive stake from LiNEAR protocol.
Validator is in the active set ;
Validator's APY > 6% ; APY = (1 + ROI) ^ (1 year / epoch_length) - 1
Validator's commission fee ≤ 10 % ;
Satisfy the above three conditions for 10 consecutive epochs.
We evaluate all the active validators and calculate the score by a variety of metrics.
Score=CS*(1-C / 100)*(1-10R)
RL: The validator’s average ROI in the past 10 epochs
RA: LiNEAR’s ROI in the past 50 epochs
C: Commission fee
R: The validator’s staked amount / Total active validators staked amount
Target staked amount of a given validator=Total $NEAR staked * Score / Sum(Scores)
Delta = Current staked amount - Target staked amount
When staking, the validator with the minimum Delta is selected first until Delta=0, and then the second minimum validator is selected until all the requested $NEAR staking are satisfied.
When unstaking:
The validator which will be selected is the one with the minimum Delta of all the validators under the condition of Delta>Unstake amount;
If there is no validator that meets the condition above, the validator with the maximum delta/target ratio is selected first and unstake the $NEAR amount no more than max(Target/2, Delta), and then the second maximum validator is selected until all the requested $NEAR unstaking are satisfied.
