Fabric Server Optimization
Navigate to the server.properties file, which can be found in the root directory of the panel after the server is first run. Once there, change the following settings:
Change this to false instead
Change the view distance to a smaller number, maybe 7 or 8, lower if it's still lagging
Lithium + Phosphor
First, download both lithium and phosphor, and put them in your mods folder(created when you first launch the server). The mods will be activated on the next time the server boots up. The mods come with all the optimizations enabled by default, so you won’t need to configure anything.
Carpet mod adds several new features to the game, which are all disabled by default. It also has several modules that can be enabled, which can optimize the game. To start, download it from here, and put it in your mods folder. Then restart the server, and type the following commands.
/carpet setDefault fastRedstoneDust true
/carpet setDefault lagFreeSpawning true
/carpet setDefault maxEntityCollisions 2
You should do this before the server is open, as it will cause quite a lot of lag while it is happening. It also takes a lot of time (up to a week)
Generating chunks for the first time often causes a lot of lag, which can severely impact TPS. To pre generate the chunks, we will be using this mod. To install it, we just need to place it in our mods folder, and then restart the server. Once this is done, log onto the server and run the following command in the world you want to generate for(only run one task at a time).
/pregen start <radius in chunks>
Recommended values: 625 radius for each dimension