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Lava Specific Optimization

Polli's Lava optimization engine is specifically designed for Lava Network's unique dualstaking mechanism, which allows users to stake with both validators and providers simultaneously. Our intelligent system maximizes your returns by optimizing provider delegations while ensuring proper risk management through diversification.

What is Lava Dualstaking?​

Lava Network introduces a dual-staking model where:

  • Validator Staking - Traditional Cosmos-style delegation to network validators
  • Provider Staking - Delegation to service providers who relay blockchain data and APIs

Provider staking offers an additional revenue stream beyond standard validator rewards, and Polli's optimization engine ensures you're always staking with the best-performing providers.

How Optimization Works​

Polli continuously monitors the Lava provider ecosystem and makes intelligent decisions to maximize your returns:

1. Provider Performance Analysis​

Our system tracks key provider metrics:

  • Current APR - Real-time annual percentage rate for each provider
  • Historical Performance - Provider APR trends over time
  • Provider Status - Active vs inactive provider identification
  • Network Benchmarks - Comparison against network-wide averages

2. Dynamic Service Fee Model​

Unlike fixed-fee models, Polli's Lava optimization uses a performance-based fee structure:

  • Service fee is calculated based on the value we create for you
  • Fee = (Your Portfolio APR - Network Average APR) / 2
  • If your portfolio underperforms the network average, you pay zero fees
  • Fee is capped at a maximum percentage to ensure fairness

This aligns our incentives with yours - we only earn when we deliver superior returns.

3. Intelligent Redelegations​

The system automatically redelegates your stake from underperforming providers to better alternatives:

  • Inactive Providers - Providers no longer active are immediately exited
  • Zero APR Providers - Providers offering no returns are replaced
  • Low APR Providers - Providers in the bottom performance tier are upgraded

When redelegating, Polli's smart diversification system ensures your stake is spread across multiple high-performing providers based on your portfolio size.

4. Smart Spare Funds Management​

If you have unstaked LAVA tokens (delegated to "empty provider"), Polli automatically:

  • Identifies these idle funds
  • Calculates optimal distribution across providers
  • Executes delegations to maximize your earning potential
  • Maintains proper diversification based on your total stake

5. Reward Claiming & Compounding​

Lava provider rewards are distributed monthly. Our system:

  • Waits for optimal timing - Claims rewards only after monthly distribution is complete (18th of each month)
  • Verifies profitability - Ensures rewards exceed transaction costs before claiming
  • Compounds automatically - Re-stakes claimed rewards to maximize compound interest
  • Distributes strategically - Allocates compounded rewards across top-performing providers

Required Permissions​

To enable Lava optimization, you need to grant the following permissions:

Dualstaking Permissions (Authz)​

  • MsgClaimRewards (/lavanet.lava.dualstaking.MsgClaimRewards) - Allows Polli to claim your provider rewards
  • MsgDelegate (/lavanet.lava.dualstaking.MsgDelegate) - Enables compounding of rewards to providers
  • MsgRedelegate (/lavanet.lava.dualstaking.MsgRedelegate) - Permits automatic redelegation between providers

Send Authorization (Fee Collection)​

  • Limited authorization to transfer service fees to Polli
  • Capped at a small percentage of your delegation
  • Only executed after successful optimization
  • Fully revocable at any time

Fee Grant​

  • Allows Polli to pay transaction fees on your behalf (optional but recommended)
  • Reduces the need to maintain balance for gas fees

Safety & Transparency​

  • Non-custodial - Your LAVA tokens never leave your wallet
  • Limited permissions - Only specific dualstaking actions are authorized
  • No principal access - Polli cannot withdraw or transfer your staked funds
  • Revocable - Remove permissions at any time to stop optimization
  • Performance-aligned fees - Only pay when we outperform the network average

Diversification Strategy​

Polli automatically diversifies your provider stake based on portfolio size:

  • Small stakes - Spread across 3+ providers for basic risk mitigation
  • Medium stakes - Balanced across 5+ providers for enhanced protection
  • Large stakes - Distributed across 7+ providers to minimize concentration risk

This ensures no single provider holds excessive percentage of your stake, protecting you from provider-specific issues while maintaining optimal returns.

Optimization Frequency​

The Lava optimization engine runs on a regular schedule but only takes action when beneficial:

  • Provider monitoring - Continuous tracking of performance metrics
  • Redelegations - Executed whenever provider performance justifies a change
  • Reward claiming - Only after monthly distribution period (post-18th)
  • Compounding - Performed when rewards exceed transaction costs

Your rewards and stake are always optimized for maximum long-term growth.