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Foundation Product

Polli's Foundation product is a specialized staking optimization solution designed for organizations, DAOs, and foundations managing large treasuries through multisig wallets. It combines automated optimization with customizable portfolio preferences, giving institutions full control over their staking strategy.

Who Is This For?​

The Foundation product is built specifically for:

  • Blockchain Foundations - Organizations managing substantial native token treasuries
  • DAOs - Decentralized autonomous organizations with governance-controlled funds
  • Institutional Investors - Entities managing large staking positions
  • Multisig Treasury Managers - Teams requiring multi-party approval for fund access

Key Differentiators​

Unlike standard optimization, the Foundation product offers:

  • Custom Portfolio Preferences - Define your ideal validator portfolio and let Polli maintain it
  • Multisig Compatibility - Designed to work seamlessly with Cosmos multisig wallets
  • Flexible Validator Selection - Set specific validators, minimum/maximum allocations, and portfolio constraints
  • Preference-Based Optimization - System works to achieve and maintain your defined portfolio structure
  • Fee-Free Option - Can be deployed without service fees for qualified foundation partners

How It Works​

1. Define Your Staking Preferences​

Create a Staking Instruction that defines your ideal portfolio:

  • Validator Selection - Choose specific validators you want to stake with
  • Initial Amounts - Set target delegation amount for each validator
  • Min/Max Thresholds - Define acceptable ranges for each delegation
  • Closed Validator Set - Optionally restrict optimization to your chosen validators only

This gives you complete control over your staking strategy while still benefiting from automation.

2. Custom Scoring & Portfolio Management​

Polli's intelligent system uses your preferences to guide optimization decisions:

  • Preference Alignment - System works to achieve your defined portfolio structure
  • Performance Monitoring - Tracks your chosen validators' health and performance
  • Risk-Based Adjustments - Only redelegates when validators are jailed or have critical issues
  • Custom Rebalancing - Maintains your specified allocation ranges

3. Intelligent Optimization​

Once your portfolio preferences are established, the system provides ongoing optimization:

Compounding with Optimal Intervals​

  • Automated reward claiming - System monitors and claims rewards at optimal timing
  • Cost-effective compounding - Only compounds when rewards exceed transaction costs
  • Proportional distribution - Rewards are re-staked to maintain your portfolio balance
  • Auto-claimed rewards handling - Rewards automatically claimed during other operations are immediately re-staked

Smart Redelegations​

The system protects your stake by automatically redelegating in critical situations:

  • Jailed Validators - Immediately moves stake from validators that are penalized
  • Low Uptime Validators - Redelegates from validators with persistent reliability issues (uptime ≤ 60%)
  • Validator Health - Monitors for operational concerns within your validator set

Redelegations only occur within your approved validator set (if closed validator set is enabled), maintaining your portfolio preferences.

Automatic Portfolio Alignment​

When you first create or update your staking preferences, Polli calculates the required actions to achieve your target portfolio:

  • Gap Analysis - Compares current delegations to target allocations
  • Strategic Redelegations - Moves excess stake to validators that need more
  • New Delegations - Uses available balance to reach target amounts
  • Undelegations - Removes stake from validators you no longer want (if needed)

Once your portfolio matches your preferences, the system switches to maintenance mode - preserving your structure while optimizing rewards.

Required Permissions​

Foundation wallets grant specific Authz permissions to enable optimization:

Staking Permissions​

  • MsgDelegate (/cosmos.staking.v1beta1.MsgDelegate) - Allows compounding and new delegations
  • MsgBeginRedelegate (/cosmos.staking.v1beta1.MsgBeginRedelegate) - Enables protective redelegations
  • MsgWithdrawDelegatorReward (/cosmos.distribution.v1beta1.MsgWithdrawDelegatorReward) - Permits reward claiming
  • MsgUndelegate (/cosmos.staking.v1beta1.MsgUndelegate) - Allows undelegation (only when explicitly needed for portfolio adjustment)

These permissions are granted through standard Cosmos Authz module, with the multisig wallet retaining full ownership and control.

Safety & Control​

The Foundation product is designed with institutional security requirements in mind:

  • Non-custodial - Your funds remain in your multisig wallet at all times
  • Limited permissions - Only specific staking actions are authorized
  • Multisig control - Permission grants require multisig approval
  • Revocable access - Remove permissions through standard multisig governance
  • No send authorization - System cannot transfer your principal or treasury funds
  • Preference enforcement - System respects your defined validator constraints

Critical: Polli never holds, controls, or has transfer rights over your treasury. All optimizations occur on-chain using permissions you explicitly grant and can revoke.

Portfolio Management Features​

Closed Validator Set​

Enable "closed validator set" mode to:

  • Restrict all optimizations to your pre-approved validators
  • Prevent automatic addition of new validators
  • Maintain strict compliance with your governance decisions
  • Still benefit from redelegations within the approved set

Dynamic Allocation​

Even with defined preferences, the system can:

  • Adjust allocations within your specified min/max ranges
  • React to validator performance changes
  • Optimize reward compounding distribution
  • Maintain portfolio health while respecting constraints

Preference Updates​

Update your staking preferences at any time:

  • Modify validator selections
  • Adjust target allocation amounts
  • Change min/max thresholds
  • Enable/disable closed validator set mode

The system will calculate and execute the necessary transitions to achieve your new target portfolio.

Optimization Frequency​

The Foundation optimization engine runs on a scheduled basis:

  • Preference alignment - Executes immediately when new preferences are set
  • Maintenance optimization - Runs periodically to compound rewards and monitor validator health
  • Protective redelegations - Triggered when validator issues are detected
  • Auto-claimed rewards - Immediately re-staked when operations generate automatic claims

All actions respect your portfolio preferences and validator constraints.

Getting Started​

  1. Grant Permissions - Use your multisig wallet to grant Authz permissions to Polli's optimizer wallet
  2. Create Staking Instruction - Define your ideal portfolio structure and constraints
  3. Enable Optimization - Activate automated optimization for your wallet
  4. Monitor & Adjust - Track performance and update preferences as needed

Your foundation's treasury will be optimized according to your specifications, maximizing returns while maintaining full institutional control.