Marinade’s delegation strategy will change on August, 14th. Under the new strategy, 90% of the TVL will be distributed through the Stake Auction Marketplace.

In the Stake Auction Marketplace, stake will be distributed based on “Max_APY” (see the simulation), which is the effective APY that a staker is receiving when staking to this validator.

As part of SAM, Marinade allows validators to set a “bid” called CPMPE. This bid represents a payment per epoch for each 1000 SOL staked that can be used to offset part of the commission that the validator is applying to the stake it receives or to share block rewards with the stakers. By setting up a bid, validators can increase their “Max_APY”, rank higher as a result, and obtain stake from Marinade.

The effective commission that they apply to that stake will be smaller, but they can stay in profit and receive the stake more predictably.

1. Calculate your optimal bid (CPMPE)

Use the link below to calculate your optimal bid amount as CPMPE (Cost per mile per epoch) for the amount of stake you want.

<aside> 🧮 SAM Calculator https://docs.google.com/spreadsheets/d/10p5vjJo6ncMns_baGpokWjfG3Bk1iduLtGn3-vjNUDw/edit?usp=sharing

</aside>

  1. Duplicate the spreadsheet
  2. Fill in your validator information (same as at Cogent calculator)
  3. Set the maximum stake you want from Marinade
  4. Calculator recommends the bid for you that would lower your profit on that stake to 0, as well as the bond balance required for that amount of stake.
  5. Set your bid as the maximum amount of SOL you are willing to pay for 1000 SOL. (Remember that the Delegation Strategy will be using the last-price auction, so you will never overpay for stake)
  6. The calculator projects your profit after receiving stake from the auction, in the case where you would pay your full bid for the epoch.

2. Set up bid and max stake wanted

You can already set up your bid (”CPMPE”, which stands for “Cost per mile per epoch) and stake wanted (”Max_Stake_Wanted”) by using the validators bond CLI and your bond authority.

https://github.com/marinade-finance/validator-bonds/blob/main/packages/validator-bonds-cli/README.md