2608. Portfolio selection in blockchain environments
Invited abstract in session TC-8: MCDM for project portfolio problems, stream Multiple Criteria Decision Aiding.
Tuesday, 12:30-14:00Room: Clarendon SR 2.08
Authors (first author is the speaker)
| 1. | Grzegorz Miebs
|
| Institute of Computing Science, Poznan University of Technology | |
| 2. | Jonas Gehrlein
|
| Web3 Foundation | |
| 3. | Matteo Brunelli
|
| University of Trento | |
| 4. | Milosz Kadzinski
|
| Institute of Computing Science, Poznan University of Technology |
Abstract
We consider a problem arising in proof-of-stake blockchain environments where agents called nominators are actively engaged in the selection of validators (the agents called to run the physical infrastructure of the blockchain). In an incentive system, nominators' revenues are related to the performance of validators that they selected, and in this setting, the nominators are faced with a portfolio selection. In fact, it is a multicriteria portfolio of portfolios problem. Firstly, the validator evaluation itself is multicriteria regarding criteria like the commission rate, cluster size, self, stake, etc. Then nominators' are supposed to nominate selected validators. Finally to diversify multiple stashes with different fractions of the total stake might be created by a single user, each with a different subset of validators. We propose a two-stage solution, the first one based on a pairwise comparison scheme is used to learn preferences regarding the evaluation of a single validator. The second utilizes a multicriteria optimization to find the best portfolio of portfolios regarding the quality of validators and diversification of the funds.
Keywords
- Multi-Objective Decision Making
- Decision Support Systems
Status: accepted
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