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Stake Auction Marketplace (SAM)#

SAM is Marinade's competitive marketplace where validators bid for stake delegation. Similar to ad auction systems, validators compete by offering better yields to stakers, creating a transparent and efficient stake allocation mechanism.

Feature Value
Mechanism Last-price auction
Bidding Options CPMPE (static) + Commission (dynamic)
TVL Cap Default 4% per validator
Rebalancing Up to 5% per epoch

How SAM Works#

graph LR
    A[Validators Submit Bids] --> B[Ranking by Max Yield]
    B --> C[Constraint Verification]
    C --> D[Stake Allocation]
    D --> E[Bid Settlement]
  1. Validators bid - Set CPMPE (static) and/or commission (dynamic) bids
  2. Ranking - Validators ordered by maximum yield offered to stakers
  3. Constraints checked - TVL caps, geographic distribution, bond coverage
  4. Stake distributed - Allocated sequentially to highest-yielding validators
  5. Bids charged - Based on last-price auction (pay realized yield, not max bid)

Bidding Mechanisms#

Validators can bid using two methods, individually or combined:

Static Bid (CPMPE)#

Cost Per Mille Per Epoch - A fixed cost in lamports per 1,000 SOL delegated per epoch.

Example Meaning
CPMPE = 1,000 Validator pays 1,000 lamports per 1,000 SOL per epoch
CPMPE = 5,000 Validator pays 5,000 lamports per 1,000 SOL per epoch

Static bids are deducted from the validator's bond.

Dynamic Commission Bid#

Validators share a percentage of actual rewards (inflation, MEV, block rewards) using basis points.

Basis Points Percentage
100 bps 1%
500 bps 5%
1000 bps 10%

Last-Price Auction

SAM uses a last-price auction mechanism. Validators set maximum bids but only pay what's necessary to match the "realized yield" - the lowest yield among winning validators that epoch. This means you won't overpay.

Bid Calculation#

The total bid charged combines both methods:

Text Only
Bid Charged = Static Bid + Dynamic Commission Bid
            = (Active Stake × Effective Bid) / 1000 + (Total Rewards × Commission Rate)

Eligibility Requirements#

To participate in SAM, validators must meet these criteria:

Requirement Threshold
Blacklist status Not blacklisted
Uptime >80% stake-weighted average (last 3 epochs)
Commission ≤7% inflation commission
Node version Within supported semver bounds
PSR Bond Created and sufficiently funded

Blacklist Criteria#

Validators are blacklisted for: - Harmful client modifications - Commission rugging (sudden large increases) - MEV sandwich attacks (>30% of blocks) - Other malicious behavior

Bond Requirements#

Validators must maintain a PSR (Protected Staking Rewards) bond covering:

Coverage Requirement
Downtime reserve 1 SOL per 10,000 SOL delegated
Yield coverage One epoch of maximum yield obligation
Bid costs One epoch of bidding costs
Minimum per account At least 1 SOL per stake account

Bond Calculator

Use the official calculator to estimate your bond requirements.

Stake Distribution#

Marinade allocates stake through a priority-based system:

Constraints#

Constraint Limit Purpose
TVL Cap Default 4% of Marinade TVL Prevent stake concentration
ASO Limit Max 30% per autonomous system Geographic distribution
Country Limit Max 30% per country Geographic distribution
Bond Coverage Must cover downtime + yields Risk protection

Allocation Process#

  1. Validators ranked by max_yield (APY offered to stakers)
  2. For each validator (highest to lowest):
  3. Check all constraints
  4. Allocate stake if constraints pass
  5. Skip if any constraint fails
  6. Continue until all stake allocated or no eligible validators

When validators have identical max_yield, remaining stake is split equally among tied validators.

Stake Matching#

Marinade offers stake matching to help smaller validators grow:

Metric Value
Match ratio 10-30% of external stake
External stake Non-self stake attracted by validator
Per-validator cap 0.4% of total TVL
Bond requirement None for matched stake

This encourages validators to build their own delegation while receiving bonus stake from Marinade.

Penalties#

Bid Reduction Penalty#

If you lower your CPMPE after receiving stake, Marinade calculates a penalty based on: - Expected yield loss from rebalancing - Bid history and bond obligations

Avoid Penalties

If you neither lower your static bid nor increase your commission, no penalty is paid. Plan your bidding strategy before entering SAM.

Unstaking Priority#

When Marinade needs to unstake, validators are prioritized:

  1. Priority 0 - Ineligible validators (removed first)
  2. Priority 1-N - Partially covered stake (by coverage %)
  3. Priority N+1-M - Overstaked validators (by overstake %)

Marinade rebalances up to 5% of stake per epoch, starting with Priority 0.

Exiting SAM#

To properly exit SAM:

  1. Withdraw your bond formally through the protocol
  2. Do not simply lower bids (triggers penalty assessment)
  3. Stake will be rebalanced according to the unstaking priority system

Benefits for Stakers#

SAM delivers value to stakers through:

  • Competitive yields - Validators compete, driving up returns
  • MEV redistribution - Validators share MEV profits through bids
  • Automatic optimization - No need to manually select validators
  • Diversification - Stake spread across 100+ validators

FAQ#

How often are SAM auctions run?

SAM evaluates and adjusts stake every epoch (~2 days). Validators can update their bids at any time, but changes take effect at the next epoch boundary.

What's a good starting bid?

This depends on market conditions. Check the SAM Analytics Dashboard to see current bid rates and find a competitive starting point.

Can I change my bid after receiving stake?

Yes, but lowering your bid may trigger a penalty. It's best to plan your bidding strategy before entering SAM.

Resources#

Next Steps#

Action Link
Understand PSR Protected Staking Rewards
Join SAM Onboarding Guide
Query data Validators API