# Stakepool Delegation Overview

The Vault is a decentralized stake-allocation engine built on Solana. It rewards high-performing validators who align with network health, fairness, and governance participation. This document explains how validators can qualify for approval, earn stake through The Vault, and maximize rewards using its layered delegation model.

> ⚠️ Disclaimer:\
> This document is for informational purposes only. All examples are illustrative and subject to change.\
> Use leverage responsibly, perform your own research (DYOR), and remember that none of this constitutes financial advice.

***

### 📍 Overview — How Stake Flows Through The Vault

Below is a simple overview of how stake is distributed to validators once they join The Vault ecosystem.

<figure><img src="/files/61lU1Rkytsmjx6DsAc63" alt=""><figcaption></figcaption></figure>

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### ✅ Step 0 — Become an Approved Validator

Before receiving any delegation from The Vault, validators must apply for approval through Discord.\
Our decentralized Validator Board—composed of community-elected validators—reviews every application.

#### 📋 How to Apply

1. Join our Discord
2. Navigate to the #support channel
3. Submit your validator name, vote account, and short background
4. The Validator Board will review and vote on your application

> 👉 Visit us on [Discord](https://discord.gg/thevaultfinance) to apply

***

#### 🛡️ Staying Approved

Once approved, validators remain on the list by meeting baseline requirements that ensure integrity and reliability.

| Requirement    | Threshold                              | Purpose                    |
| -------------- | -------------------------------------- | -------------------------- |
| Good actor     | No sandwiching or harmful MEV behavior | Preserve fairness          |
| Commission     | <5%                                    | Maintain competitiveness   |
| MEV commission | <10%                                   | Align incentives           |
| Uptime         | ≥97.5%                                 | Ensure network reliability |

**Failure to meet these benchmarks can lead to temporary removal, and possible re-evaluation by the board.**

***

### 💪 Step 1 — Direct Stake Using Your Own SOL

Approved validators can begin earning stake immediately by deploying their own SOL through The Vault.

#### 🔁 Option A — Direct Stake with vSOL

You can direct stake your own SOL through The Vault’s interface, receiving vSOL in return.\
vSOL represents your staked position and accrues yield as normal.

* Direct stake SOL → receive vSOL
* vSOL remains liquid and composable within the Solana ecosystem

***

#### ⚡ Option B — Kamino Multiply

Validators seeking to increase exposure can use Kamino Multiply, a leverage product combined with The Vault’s vSOL.

| Feature          | Description                                                           |
| ---------------- | --------------------------------------------------------------------- |
| Maximum leverage | Up to 7.5× base SOL position                                          |
| Example\*        | 1 SOL → 7.5 SOL exposure (potentially 15 SOL after matched liquidity) |
| Monitoring       | Required daily — check borrow rates and yield                         |
| Slippage         | Review before entering or unwinding positions                         |

> ⚠️ Use leverage responsibly.\
> Leverage amplifies both potential gains and potential losses.\
> Always monitor your health ratio to avoid liquidation.

\*Illustrative example only. Parameters and multipliers may change.

***

#### 🎁 Bonus — The Top 100 Validator Pool (40%)

The top 100 validators who delegate the most SOL to their own validator via direct staking (vSOL / Kamino) share 40% of The Vault’s undirected stake equally.

Example (illustrative):\
If The Vault manages 1,000,000 SOL of undirected stake:

* 40% → 400,000 SOL divided equally among 100 validators
* Each receives ≈ 4,000 SOL additional delegation

All 100 share equally, regardless of their ranking within the top 100.

***

#### 🧩 Direct Stake Path

<figure><img src="/files/toQYjJ9nEBdETiseqzjD" alt=""><figcaption></figcaption></figure>

***

### 🗳 Step 2 — Influence Gauges with $V or USDC

The Vault’s governance system uses gauges to determine how 10% of undirected stake is allocated.\
Validators can influence these gauges directly with $V or indirectly with USDC incentives.

***

#### 🟠 Option A — Vote Directly with $V

* Lock $V to gain voting power
* Each epoch, 10% of undirected stake is distributed according to gauge votes

Example (illustrative):

* 1 validator receives 100% of votes → that validator receives 10% of undirected stake
* 2 validators receive equal votes → each receives 5% of undirected stake

***

#### 💵 Option B — Incentivize Votes with USDC (via Votex.so)

If you prefer not to lock $V, you can use Votex.so to incentivize $V holders to vote for your validator.\
By depositing USDC rewards, other participants direct their $V gauge votes toward your validator.

***

#### 🧩 Gauge Voting Flow

<figure><img src="/files/22rSOUYUDlOd1nbTmXaA" alt=""><figcaption></figcaption></figure>

***

### 📊 Step 3 — Compete Within The Vault Delegation Strategy

The Vault dynamically allocates all undirected stake according to transparent rules.

| Allocation Bucket        | Share of Undirected Stake | Criteria                                                               |
| ------------------------ | ------------------------- | ---------------------------------------------------------------------- |
| **Gauge Voting**         | 10%                       | $V locked or incentivized votes                                        |
| **Direct Stake Leaders** | 40%                       | Top 100 validators self-delegating via vSOL / Kamino                   |
| **Performance Elite**    | 50%                       | Top 50 validators by vote credits (last 10 epochs) with 0/0 commission |

***

#### ⭐ Elite Performance Metrics

To qualify for the Elite Performance Bucket (50%), validators must maintain:

| Metric             | Target                | Purpose                  |
| ------------------ | --------------------- | ------------------------ |
| Vote credits       | Top 50 over 10 epochs | Consistent participation |
| Commission         | 0/0%                  | Maximum fairness         |
| Uptime             | ≥99%                  | Network reliability      |
| Performance window | Continuous evaluation | Sustained excellence     |

Example (illustrative):\
If The Vault manages 1,000,000 SOL undirected:

* 50% → 500,000 SOL shared among 50 validators
* Each receives ≈ 25,000 SOL additional stake

***

#### 🧩 Delegation Buckets Breakdown

<figure><img src="/files/cogDfnssM7TJ0pY0FCCH" alt=""><figcaption></figcaption></figure>

***

### 🚀 TL;DR — Maximizing Stake from The Vault

| Stage  | Action                               | Reward Potential             |
| ------ | ------------------------------------ | ---------------------------- |
| Step 0 | Apply via Discord → Get approved     | Access to all Vault programs |
| Step 1 | Direct stake SOL via vSOL / Kamino   | Share 40% pool (Top 100)     |
| Step 2 | Vote with $V or incentivize via USDC | Share 10% pool (Gauges)      |
| Step 3 | Achieve top performance              | Share 50% pool (Top 50)      |

To fully optimize:

* Align with The Vault’s governance
* Maintain top-tier validator performance
* Engage actively in the ecosystem

***

### 📚 Example Overview (Illustrative Only)

If The Vault controls 1,000,000 SOL of undirected stake:

| Allocation           | Percent | Pool Size   | Example per Validator      |
| -------------------- | ------- | ----------- | -------------------------- |
| Gauges               | 10%     | 100,000 SOL | Varies by vote weight      |
| Direct Stake Leaders | 40%     | 400,000 SOL | ≈ 4,000 SOL each (Top 100) |
| Elite Performance    | 50%     | 500,000 SOL | ≈ 25,000 SOL each (Top 50) |

> 📌 *These are illustrative examples only. Real allocation and stake amounts may differ based on total TVL, governance votes, and network conditions.*

***

### ⚙️ Performance Checklist

\- Apply on Discord and gain Validator Board approval\
\- Maintain uptime ≥97.5%\
\- Keep commissions ≤5% (base) and ≤10% (MEV)\
\- Direct stake through vSOL or Kamino (optional)\
\- Hold $V or incentivize votes on Votex.so\
\- Maintain 0/0 commission if aiming for performance pool\
\- Monitor performance metrics weekly

***

### 📜 Legal & Risk Disclaimers

> ⚠️ Important:\
> The Vault does not guarantee returns, rankings, or future stake allocations.\
> All figures and percentages are subject to change based on governance outcomes, network conditions, and Vault-level strategy adjustments.\
> Leverage products such as Kamino Multiply carry risk of liquidation, and other factors.\
> Always perform your own due diligence (DYOR).\
> This is not investment advice.

***

### 💬 Final Call to Action

Ready to participate?

👉 Visit us on [Discord](https://discord.gg/thevaultfinance)\
Join the #support channel to apply and begin your journey as an approved Vault validator.


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