How the Delegation Strategy on StaFi helps Maximize Staking Rewards

StaFi Protocol

Delegation Strategy

  • Diversified Delegation: The original tokens contributed by users in the StaFi rToken pool will be distributed to numerous (the total number of rToken issued — M) mini staking accounts, which will be governed using a multi-signature system. The profit maximization technique will then delegate multiple (the total number of burnt rToken — N) validators to each staking account.
  • Pick Original Validators candidates strictly: The on-chain performance data of original validator candidates will be evaluated by the rToken App using parameters such as online time, slashing record, self-bond ratio, node identity, commission ratio, and others to ensure that great validators with low commission are chosen. According to the evaluation results, StaFi will rank all of the project’s validators and choose the top validators as Original Validator candidates.
  • An automatic delegation mechanism that strikes the right mix between increased decentralization of project validators and increased staking rewards: The top Original Validator (OV) candidates’ staking power will always be monitored by StaFi rToken contracts, which will re-rank the OVs according to staking power from low to high in each epoch, then choose the lowest M validators as the official OVs to delegate.
  • A plan for minimizing the risk of loss: The rToken staking contract will immediately initiate the redelegate process and re-select additional qualified validators in the OV candidates for delegation when the system detects that the node is cut or the online rate is lower than the standard.

Conclusion

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Helen IMAH

Helen IMAH

I’m a TECH Lover, Blockchain Enthusiast, Strategic Digital Marketer, Content Creator, Crypto Trader & Data Analyst…