Yield Optimization

Megavalidator allows users to maximize their staking returns by leveraging hardware-accelerated infrastructure and MEV-optimized strategies. Our approach ensures that sSOL holders receive the highest possible yield by incorporating cutting-edge validator enhancements.

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How Megavalidator Maximizes Returns

We optimize yield by implementing several key mechanisms, including:

• 0% Commission – Ensuring all staking rewards are fully distributed to sSOL holders.
• 100% MEV Kickback – Returning all MEV profits to the stake pool.
• Dedicated High-Performance Hardware – Running validators on custom-optimized machines to maximize efficiency.
• Codebase Optimizations – Enhancing transaction processing and execution speed.

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Partnership with Paladin

To further optimize transaction processing and maximize priority fee revenue, we have partnered with Paladin, a Jito fork. This partnership allows us to:

• Capture More Transactions with Priority Fees
  • Paladin helps our validator receive higher-value transactions, ensuring better yield for sSOL holders.
• Prevent Harmful MEV Practices
  • Paladin detects and filters out sandwich bundles, protecting users from predatory MEV behaviors.

While bad MEV prevention is not directly related to yield, it improves network fairness and security, contributing to a more stable staking environment.

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Modified Solana Validator Client for Higher Yields

Our validator runs on a custom-modified client, which introduces several yield-enhancing optimizations:

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1. Advanced Transaction Scheduler

• The scheduler is responsible for selecting and ordering transactions during a validator’s assigned block-building slot.
• Our modified scheduler prioritizes transactions with higher fees, leading to greater validator earnings.

Background:
Validators take turns in building blocks. During their assigned slot, they must fill the block under size constraints while determining the most profitable transaction order. Our optimized scheduler ensures maximum priority fee collection.

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2. Enhanced Broadcast System

• Our validator broadcasts to a wider network of nodes, ensuring:
  • More votes → Increased validator rewards.
  • Faster transaction confirmation → Improves Solana network efficiency.

This improved broadcast mechanism allows us to capture more staking rewards, ultimately benefiting sSOL holders.

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sSOL APY Calculation Methodology

sSOL APY is determined using a least squares linear regression on the sSOL redemption rate over the last 4 epochs. At each epoch:

• The sSOL-to-SOL ratio in the Solayer Stake Pool is recorded.
• The gradient of the redemption rate change is calculated to estimate annualized returns.

This method provides a transparent and accurate measurement of sSOL staking yields.