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Cosmos Optimization

Polli's Cosmos optimization engine is designed to maximize your staking returns on Cosmos-based blockchains through intelligent automation. Our system continuously monitors your delegations and executes strategic actions to enhance your portfolio performance.

Supported Chains​

Polli currently supports several Cosmos-based chains that use the standard Cosmos staking module. We can also support customized chains if we agree on the scope of required adjustments with the specific blockchain team.

For a complete list of supported chains, visit our app at app.polli.co.

Overview​

The Cosmos optimization flow consists of three core features working together:

Smart Redelegations​

Automatically moves your stake from underperforming validators to better alternatives. Our system monitors validator performance across multiple dimensions including uptime, slashing events, and commission rates, then executes strategic redelegations to protect your stake.

Learn more: Smart Redelegations →

Optimal Compounding​

Claims and re-stakes your rewards at the most profitable intervals based on your stake size, APR, and transaction costs. The system calculates personalized compounding schedules to maximize your APY while minimizing fees.

Learn more: Optimal Compounding →

Portfolio Balancing & Diversification​

Maintains optimal stake distribution across multiple validators to minimize risk. Our balancing system ensures proper diversification based on your total delegation size, enforcing concentration limits and strategic rebalancing.

Learn more: Portfolio Balancing & Diversification →

Required Permissions​

To enable Cosmos optimization, you need to grant specific Authz permissions to Polli:

Staking Permissions​

  • MsgDelegate (/cosmos.staking.v1beta1.MsgDelegate) - Allows compounding of rewards back into validators
  • MsgBeginRedelegate (/cosmos.staking.v1beta1.MsgBeginRedelegate) - Enables automatic redelegation between validators
  • MsgWithdrawDelegatorReward (/cosmos.distribution.v1beta1.MsgWithdrawDelegatorReward) - Permits claiming of staking rewards

Send Authorization (Fee Collection)​

Polli requires a Send Authorization to collect service fees. This permission:

  • Is limited to a small percentage of your total delegation
  • Has a strict spend limit that you control
  • Can only be used for fee collection after successful optimization
  • Is fully revocable at any time

Important: The send authorization does not give Polli access to your principal stake, only to the agreed-upon service fee percentage.

How It Works​

1. Continuous Monitoring​

Our system runs optimization checks on an hourly basis, analyzing:

  • Current validator performance metrics
  • Your delegation distribution
  • Pending rewards and optimal compounding timing
  • Portfolio balance and diversification

2. Intelligent Decision Making​

The optimization engine uses sophisticated algorithms to determine:

  • Whether compounding is profitable (rewards > transaction costs)
  • Which validators need redelegation based on performance
  • How to maintain optimal portfolio diversification
  • The most cost-effective execution strategy

3. Automated Execution​

When optimization is beneficial, the system:

  • Executes transactions on your behalf using granted permissions
  • Collects a small service fee only after successful operations
  • Logs all actions for full transparency
  • Ensures compliance with spend limits and authorization caps

Safety & Transparency​

  • Non-custodial - Your funds never leave your wallet
  • Limited permissions - Only specific staking actions are authorized
  • Revocable access - You can remove permissions at any time
  • Transaction transparency - All actions are recorded on-chain

The optimization process is designed to be safe, automated, and highly effective at maximizing your staking returns while minimizing risk.