Optimized Validator Selection

This article highlights how Stader evaluates and secures proper validators to stake your BNB. While maximizing APYs is our key goal, ensuring the safety of users’ funds is paramount. Hence, we have stringent criteria for validator selection.

The Selection Criteria are as follows:

• Age >180 days
  The age of the validator in the system gives an assurity on the commitment of the Validator towards the network expansion. Longer the Validator is in the system, the more the commitment towards network functioning.
• Commission rate < 10%
  Commission rate is the rate at which a Validator charges their Delegators. This % is charged from the rewards claimed by the Delegators.
• APR of the validator > 5%
  APR is the percentage of return a validator provides per annum and is responsible for the APY we achieve.
• Self Stake amount > 11000 BNB
  For BNB Network, the minimum self-staked amount that a Validator has to maintain is 10000 BNB. If the validator faces slashing, they are charged with a 1000 BNB penalty and jail time of 2 days. Hence, to maintain the security of the staked pools, Stader has kept the minimum self-stake criterion to 11000 BNB. Also, the more the self-staked amount, the more skin in the game the validator has.

DYOR is not always easy and when it comes to Validator Selection, you would think of this as a one-time effort. But No! Once the validators are selected, you need to constantly monitor their performance and accommodate for any inconsistencies observed in their various health parameters (slashing, uptime, etc.). Moreover, the distribution of stake amongst the validators is equally important. An equal proportion distribution may not always provide the best APYs. Also, concentrating your stake in the highest-yielding Validator may not always be safe.

Thus, managing the risk vs. reward is critical when it comes to choosing the right Validator. We at Stader, tactfully handle all of the above along with Auto-compounding and Auto-rebalancing!

Monitoring validators metrics is a constant exercise, the above provides a starting point for our selection and we continuously monitor and adjust our criteria ( including cases of exceptional selection or deletions) for optimal outcomes.

If you have any suggestions on how we can further improve our validator evaluation process, feel free to drop your feedback on our Telegram community here.