> For the complete documentation index, see [llms.txt](https://docs.hipo.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hipo.finance/introduction/how-does-hipo-work/validators.md).

# Validators

### Lending GRAM Tokens to Validators

1. **Innovative Validator Model**: Hipo utilizes an innovative model to lend staked GRAMs to validators, which is **decentralized and permissionless** compared to competitors.
2. **Validator Auction Model**: Validators can request to borrow staked GRAMs in each validation round by submitting their Return on Investment (ROI). Hipo's protocol selects the best ROI validators offer in an auction-like model, ensuring optimized APY for both stakers and validators.
3. **Secure Process**: All processes, including borrowing staked GRAMs and distribution of rewards, are safely executed through Hipo's smart contracts. The protocol has undergone [security audits](https://github.com/HipoFinance/audits) to ensure the integrity and safety of user funds.

<figure><img src="/files/v02Yh7bEEl4gnTzMwEs4" alt=""><figcaption></figcaption></figure>


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