💦What is Minipool?

Learn what Minipools are and how they play a crucial role in our staking ecosystem.

A Minipool represents a validator that is jointly funded equally by AVAX borrowed from liquid stakers and AVAX contribution from the minipool operator. Thanks to Minipool design architecture, users can become validators on the Avalanche network with nearly half the usual AVAX requirement.

For the borrowed AVAX, the minipool operator needs to provide collateral in terms of GGP, which is the GoGoPool's protocol token, at least 10% of the amount of the borrowed AVAX. In return, GoGoPool distributes GGP rewards to the minipool operators based on their staked GGP as insurance, up to a maximum of 150% of the borrowed AVAX's value.

Benefits

• Lower Entry Costs: Minipools lower the financial barriers to becoming a validator, requiring significantly less AVAX and simplifying the process with tools like the One-Click launcher.

• Simplified Validator Launch Options: Minipools support a One-Click Launcher for users with no coding experience, making it possible to launch a validator effortlessly. For advanced users seeking more control, a Manual Launcher is available, allowing them to customize and run their own nodes.

• Enhanced Yield Opportunities: Minipool operators not only earn from native validator yields and GGP staking rewards but also receive additional incentives from subnet projects for validating their subnets alongside the Avalanche mainnet.

• Validator Networking and Incentives: Minipools not only simplify the process for subnets to efficiently find numerous validators via GoGoPool’s marketplace but also enhance the appeal of validators to subnet projects, which offer additional incentives for their participation. This two-way benefit streamlines operations and fosters a robust support system for both validators and subnets.

• Increased Decentralization and Security: By enabling more participants to become validators, minipools enhance the decentralization and security of the Avalanche network, contributing to its overall resilience and integrity.