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Liquid Staking

Amulet's optimized staking algorithm enables users to earn PoS staking rewards on Solana without locking in their funds. Users can get instant liquidity for their staked $SOL and participate in DeFi with $amtSOL, Amulet's $SOL derivative.

Stake $SOL for $amtSOL

$amtSOL represents users' ownership of their staked $SOL in Amulet's staking pool. Amulet takes the staked $SOL, delegates them to validators through an algorithmic delegation strategy, and auto-compounds the staking rewards to boost returns.
As a liquid staking token, users can also trade $amtSOL on open markets or have them staked on other DeFi platforms for extra returns. To redeem their staked $SOL and rewards from Amulet's amtSOL-SOL liquidity pool with $amtSOL, users can opt for:
  • Instant Withdraw with redemption fees ranging from 0.3% to 3%; or
  • Delayed Withdraw with no redemption fees but there is a small waiting period.
For more details on Amulet's liquid staking, check out the user guide on $SOL Liquid Staking here.

Delegation Strategy

Amulet's delegation strategy is aligned with the Solana Foundation's goals for network growth and redistributing node-stakes for better network security. Additional considerations have also been added to Amulet's delegation strategy to protect investor interest.

Key Considerations

Validator APY

The key factors determining validator APY are commission and number of validated blocks. The lower the commission rate and the higher the validated block, the higher the staking reward.

Active stake

Active stake represents the current portion of a validator's stake that has voting power. The higher the dynamic stake ratio to the total validators stake, the more likely a validator might be able to cause the network to halt (33% of total stake)

Data center concentration

Data center concentration represents the validators' geographical concentration. The higher the concentration, the higher the chances of the network being affected by an outage at a data center.

Skip rate

Skip rate refers to how often a validator misses the leader slot to verify transactions. This affects the number of blocks produced / the staking rewards generated by the validator.

Credit Position

The current credit position compares the current validator's epoch credits (uptime) with the total uptime of all validators. The higher a validator's uptime, the higher the validator's chances for generating more staking rewards.

Incentive

Solana has a delegation program to decrease validator concentration with incentives from the Solana Foundation for validators to meet certain performance and decentralization criteria. Validators under the Solana Foundation are assumed to have met said criteria.

Strategy Details

Amulet scores each validator using statistical analysis. The score is calculated as the average performance based on statistical data from the previous three (3) epochs. The formula is as follows:
Score=Avg(Credit×(Rewards+PerformanceCentralisation+Incentivised))Score = Avg(Credit \times (Rewards + Performance - Centralisation + Incentivised))
Where:
  • CreditCredit
    = Validator uptime during network participation for current epoch. Validators earn credits by voting. Higher credits means higher validator uptime.
  • RewardsRewards
    = Percentage of total rewards after commissions distributed to voting accounts.
  • PerformancePerformance
    = Normalized performance ranking score based on validators' credits which can be calculated as:
Performancei=max((Z(Crediti)×(1Commission)))1,0)Performance_i = max( (Z(Credit_i) \times (1 - Commission)) ) - 1, 0)
In other words, validators with low participation rates will be penalized.
  • CentralisationCentralisation
    = Normalized centralization score based on data center centralization (denoted as
    ConcentrationConcentration
    ) and validator stake centralization. Normalized penalties for data center centralization and validator stake can be calculated as:
Penaltydatacenter=Multiplier×ConcentrationPenalty_{datacenter} = Multiplier \times Concentration
Penaltystake=Multiplier×Z(Stake)Penalty_{stake} = Multiplier \times Z(Stake)
  • IncentivisedIncentivised
    = Bonus score for Solana registered validators
The overall score will determine the weight assigned to each qualified validator for stake delegation.