Automatic Staking Optimization

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.

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