HD-2: Delegation Boost for Enhanced Staking

Feature Overview

A new Delegation Boost mechanism has been introduced in the staking module, allowing delegators to deposit additional tokens (in a specialized “boosted” pool) that increase their rewards proportionally. This addition brings several novel concepts, parameters, and message types to the Cosmos-based network.

Motivation

Standard delegation involves delegators bonding tokens directly to validators, but previously had no way to “boost” or multiply their stake without simply adding more tokens in the same manner. Delegation Boost introduces a secondary stake pool that augments the staking power of a validator and potentially increases the delegator’s reward payout. This fosters deeper collaboration between delegators and validators and opens up new economic incentives in the network.

Objectives

  • Provide Flexible Staking Options: Enable a dedicated method to “boost” stake in addition to normal delegation, with potential for higher rewards.
  • Enforce Minimum Boost Requirements: Allow validators to specify a min_delegation as a threshold for boosted delegation.
  • Enable Enhanced Reward Calculations: Incorporate boosted delegations into reward distribution using a flexible multiplier defined by a network parameter (BoostPercentage).
  • Streamline Staking Flows: Maintain a clear distinction between regular staked tokens and boosted tokens, with dedicated messages for deposit and withdrawal.

Key Features

  1. Boosted Pool Account

    • A new module account (boosted_tokens_pool) holds tokens delegated as a boost.
    • Ensures clear tracking and isolation of boosted tokens from regular staked tokens.

  2. Boost Ratio & Rewards Multiplier

    • The distribution module calculates a “boost ratio” for a validator by comparing its total boosted stake to its overall staked amount.
    • A configurable BoostPercentage parameter governs how much of a multiplier this ratio adds to the rewards.

  3. Validator-Based Settings

    • min_delegation: A validator can specify the minimum boost required for delegators.
    • delegate_authorization: Determines whether anyone other than the validator can add a boosted delegation.

  4. New Message Types

    • DelegateBoost(...): Delegates tokens to the boosted pool, tracked separately from normal staking.
    • UnDelegateBoost(...): Withdraws boosted tokens, reducing the delegation’s effective multiplier.

  5. Enhanced Store and Queries

    • New keys and indexing in the staking keeper track total boosts for each validator and each (delegator, validator) pair.
    • Functions like GetTotalBoostedDelegation and GetValidatorDelegationsBoost enable easier lookups of boosted stakes.

  6. Genesis & Parameter Integration

    • The chain’s genesis process now initializes the boosted_tokens_pool and parameters such as BoostPercentage.
    • Operators can manage BoostPercentage, min_delegation, and delegate_authorization via governance or direct configuration.

Technical Implementation

  • Extended Staking Keeper Methods:

    • DelegateBoost, UnDelegateBoost, SetDelegationBoost, and GetDelegationBoost orchestrate storing boosted tokens and updating delegated amounts.
    • The keeper enforces min_delegation and delegate_authorization when delegations occur.

  • Modified Reward Distribution Logic:

    • Updated distribution code fetches a validator’s boostedTotal tokens, calculates a boostRatio, and multiplies the base rewards by 1 + (BoostPercentage * boostRatio) (capped at a maximum of 1:1 ratio for the boost portion).

  • New Proto Definitions:

    • MsgCreateValidator and MsgEditValidator now include min_delegation and delegate_authorization.
    • Messages for delegating/undelegating boosts are defined and handle moving tokens to and from boosted_tokens_pool.

  • Module Accounts & Balances:

    • All boosted tokens are transferred to the boosted_tokens_pool account via the Cosmos SDK’s Bank module.
    • On undelegation, tokens are properly returned to delegators.

Acceptance Criteria

  • Boosted Delegations: Delegators can deposit additional tokens and have them reflected in higher potential rewards.
  • Minimal Impact on Existing Delegations: Regular staking remains unaffected; boosted delegation is purely additive.
  • Validator Constraints: Validators can enforce a minimum boost requirement, and can restrict who is allowed to boost.
  • Reward Calculation Updates: The distribution module correctly calculates rewards with a boostRatio multiplier, respecting the BoostPercentage parameter.
  • Secure Fund Handling: Tokens are transferred securely to the boosted_tokens_pool and only returned on undelegation.
  • Documentation & User Guide: Provide detailed instructions for validators and delegators on enabling, delegating, and withdrawing boosts.

Documentation

  • Developer References: Covers all new messages (DelegateBoost, UnDelegateBoost), relevant keeper methods, and store keys.
  • Validator Setup: Explains configuring min_delegation and delegate_authorization.
  • Reward Mechanics: Describes the boost ratio calculation, capped multiplier, and the distribution flow for boosted rewards.
  • Governance: Outlines how parameters like BoostPercentage may be updated through governance proposals.

By integrating Delegation Boost, Helios enhances the overall staking experience, introducing novel opportunities for delegators and validators alike to optimize their on-chain economic strategies while maintaining network security and stability.