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DYOR staking insights Filter mechanism details
The following is a detailed explanation of what each attribute implies in terms of risk and reward. This can be useful for those users who prefer a DYOR approach to staking.
Higher number of nominators indicates more people putting trust on the validator, but if too many people are staking on the same validator, it can lead to centralization and might also lead to reduced reward - because usually increased number of nominators leads to increased stake - but by no means is this necessary.
Own stake is proportional to "skin-in-the-game" of the validator, but inversely proportional to reward.
Higher stake by others indicates trustworthiness, but also decreases ROI.
Lower commission = more rewards given out to community, but some people may argue that when commission is too low, the validator is causing harm to smaller validators and hence might want to filter validators by customizing the minimum and maximum commission.
We've used on-chain information like own stake, other stake, number of nominations, number of slashes, et al. to develop a risk score which rates validators between 0 to 1, 0 being lowest risk and 1 being highest risk.
The filter mechanism allows users to put a maximum cap on the risk level to filter validators according to their personal risk appetite.
For more details on how risk score is calculated, see Risk Score Logic.