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 →

AI-Driven Advanced Optimization

Beyond rule-based optimization, Polli leverages reinforcement learning to continuously improve validator selection and stake allocation across both Solana and Cosmos. Our specialized AI agent learns directly from blockchain data, making increasingly sophisticated decisions that adapt to changing network conditions.

Learn more: AI-Driven Optimization →

Validator Scoring (Polli Scoring)

At the core of every optimization decision - from recommending validators to selecting redelegation destinations - is Polli's proprietary validator scoring engine. Every validator on the network is continuously assessed and assigned a score that determines its ranking and eligibility for delegation.

Validator Status

Before scoring, each validator is classified into one of three statuses:

• ACTIVE - meets all health criteria: bonded, sufficient uptime (≥ 70%), acceptable commission, no excessive slashing, and reasonable voting power. Only active validators are recommended for new delegations.
• NOT RECOMMENDED - fails one or more health checks (e.g., low uptime, too many slashes, excessive commission, very high or very low voting power, or too new with no track record). These validators receive a significant scoring penalty (reduced to 10% of their calculated score).
• INACTIVE - unbonded, tombstoned, or in an unrecoverable jailed state. Score is set to zero.

How Scoring Works

Polli's default scoring formula is optimized to maximize staking returns while maintaining network health:

Score = (APR_Rank × 90 + Uptime_Rank × 5 + VotingPower_Rank × 5) / 100

Each factor produces a rank value between 0.0 and 1.0:

APR Rank (weight: 90%)

The annual percentage return a specific validator offers, calculated based on real on-chain rewards. Validators are sorted by annual return rate. Higher APR = better rank.

APR_Rank = (totalValidators - position) / totalValidators

For example, if there are 200 validators and a validator has the 5th highest APR, its rank is (200 - 5) / 200 = 0.975.

For reference, the Network APR is the average network return, calculated based on average network yield and commission across all validators using real on-chain rewards.

Uptime Rank (weight: 5%)

The percentage of blocks the validator successfully signed, calculated based on a fixed time period. Uses the validator's actual uptime rate directly - no positional ranking.

Uptime_Rank = 1.0 - (missedBlocks / totalBlocks)

A validator that missed 50 out of 10,000 blocks scores 1.0 - (50 / 10000) = 0.995.

Voting Power Rank (weight: 5%)

The validator's share of total network stake, indicating how much influence it has over consensus. Validators are sorted by voting power, but lower is better - this promotes network decentralization by favoring smaller validators.

VotingPower_Rank = (totalValidators - position) / totalValidators

Position is sorted ascending, so a validator with the lowest voting power gets the highest rank.

After the score is calculated, a status multiplier is applied:

Status	Multiplier	Effect
ACTIVE	× 1.0	Full score retained
NOT RECOMMENDED	× 0.1	Score reduced to 10% - effectively deprioritized
INACTIVE	× 0.0	Score set to zero - excluded entirely

The final score is expressed as a percentage (0.0–100.0).

This scoring is applied across all retail optimization features:

• Validator recommendations - the platform suggests top-scoring validators when you stake
• Redelegation destinations - when moving stake away from underperforming validators, the scoring engine selects the best-ranked alternatives
• Portfolio balancing - rebalancing decisions factor in validator scores to ensure stake flows toward the highest-quality validators

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.