A way to smartly delegate your funds to Elrond validators and increase decentralization, APR & security of the network. 🔐
On the Elrond blockchain, you can delegate your funds to validators in order to earn rewards and secure the blockchain.
When creating a liquid staking solution, one of the most important factors is keeping the network decentralized & the funds smartly distributed. You don't want to put all the eggs in one basket, especially with potentially millions of dollars worth of crypto.
One validator's APR might drop drastically over-night, they might change the service fee for you to earn less rewards or simply gain too much power & funds to take over the network.
To solve that issue, the delegation strategy makes sure the funds are smartly distributed, maximizing for security of the network, APR and a safer experience.
The Delegation Strategy filters all validators and gives them a rating based on
- APR
- Decentralization (how much % of all stake it owns)
- Service fee
Wave Protocol uses the Delegation Strategy in order to contribute to the decentralization of funds in the Elrond ecosystem and maximise its APR.
The EGLD provided by users with Liquid Staking is delegated daily based on the results of this algorithm.