Lido on Polkadot Onboarding Process
Lido on Polkadot, developed in collaboration with MixBytes, is a liquid staking solution for DOT.
Unlike many of the other Lido staking protocols, validators for Polkadot and it’s canary network Kusama are not chosen through a permissioned set, but through an algorithm that selects operators based off of chain-based performance that maximizes APR.
The gathered and calculated data for each validator and era consists of:
- Era points
- Nominators list
- Slashing
- APR
- Stake amount
- Payout rate
This gathered data is aggregated and used to build several metrics for different time periods:
- Operational: last block
- Short-term: ~1 week
- Mid-term: ~1 month
- Long-term: ~6 months
Then the scoring model considers dynamical changes of validators' performance, e.g.:
- Operational data lets us detect oversubscribing, fees increase and slashing.
- Short-term data will show us if some relatively good validator in the long-term goes down or starts to lack in performance.
- Mid- and long-term data will hedge us from choosing validators who show good performance in the short-term but might be unstable in the long run.
APR maximization mechanics are based on validator scores as described above. For more information about the process and selection algorithm read more:
https://blog.lido.fi/lido-on-polkadot/
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