<h3 id="eigen-layer-restaking-is-now-live"><br>Eigen Layer restaking is now live!</h3><p>EigenLayer has <a href="https://twitter.com/eigenlayer/status/1669065156427681792?s=20&ref=p2p.org">successfully launched</a> Stage 1 of their Mainnet. This is a significant milestone, and <a href="http://p2p.org/?ref=p2p.org">P2P.org</a> is happy to be a part of this historical moment as one of the EigenLayer <a href="https://www.blog.eigenlayer.xyz/eigenlayer-stage-1-mainnet-launch/?ref=p2p.org#:~:text=Dimitry%20Ukhanov%20%2D%20P2P">community multisig members</a>!</p><p>Restaking doesn't generate any rewards right now since the launch of Actively Validated Services (AVS) generating these rewards is planned for a later stage.</p><p>However, EigenLayer <a href="https://www.blog.eigenlayer.xyz/eigenlayer-mainnet-launch-benefits-of-early-restaking-2/?ref=p2p.org">highlights</a> that restaking early provides the earliest possible access to AVS rewards, as some services may cap their initial restake amounts.</p><p>EigenLayer was launched with initial usage limits of 3200 for stETH, rETH, cbETH, and 9600 ETH for native staking. The stETH cap of 3200 ETH was reached <a href="https://twitter.com/eigenlayer/status/1669085279020527616?ref=p2p.org">within the first hour</a>, with rETH and cbETH following shortly afterward! The team promises to increase limits progressively over the coming weeks and months.</p><p>Although all liquid staking token (LST) options have already reached <a href="https://restaking.nethermind.io/?ref=p2p.org">their caps</a>, native stakers still have time to become a part of early adopters.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/06/Untitled--2-.png" class="kg-image" alt loading="lazy" width="2000" height="464" srcset="https://p2p.org/economy/content/images/size/w600/2023/06/Untitled--2-.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/06/Untitled--2-.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/06/Untitled--2-.png 1600w, https://p2p.org/economy/content/images/2023/06/Untitled--2-.png 2378w" sizes="(min-width: 720px) 720px"></figure><h3 id="restaking-with-p2porg">Restaking with P2P.org</h3><p>You can restake your ETH on the EigenLayer network using the <a href="http://p2p.org/?ref=p2p.org" rel="noopener noreferrer">P2P.org</a> staking dApp. Our dApp, which is non-custodial, supports the option to customize validator withdrawal addresses—a fundamental necessity for directly restaking to an EigenPod. Suppose you don't already have an EigenPod address. In that case, we are excited to announce a new feature where users can generate their own EigenPod address directly within the staking process in our dApp!<br><br><strong>Below, we have prepared a step-by-step guide on how to do this.</strong> However, before restaking, please take note:</p><div class="kg-card kg-callout-card kg-callout-card-yellow"><div class="kg-callout-emoji">⚠️</div><div class="kg-callout-text">The withdrawal address is used to get your ETH deposit back. It's specified once, and nobody can change it after the staking deposit is sent because the network cements the association of a particular validator and withdrawal address. When you decide to put your EigenPod Address as a withdrawal address, you accept EigenLayer smart contract risk and understand that <a href="https://p2p.org/?ref=p2p.org" rel="noopener noreferrer">P2P.org</a> can't change this address.</div></div><p>How to restake if you don't already have an Eigenpod address:<br><br>1. First, visit our Ethereum staking dApp at <a href="https://eth.p2p.org/?ref=p2p.org">eth.p2p.org</a> and connect a Web3 wallet.</p><p>2. After connecting to the Web3 wallet, enter in the field the amount of ETH you want to stake, for example, 32 ETH. Under the field, you will see option Eigenlayer restaking with the checkbox:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2024/02/Untitled-35.png" class="kg-image" alt loading="lazy" width="978" height="832" srcset="https://p2p.org/economy/content/images/size/w600/2024/02/Untitled-35.png 600w, https://p2p.org/economy/content/images/2024/02/Untitled-35.png 978w" sizes="(min-width: 720px) 720px"></figure><p><br>3. Activate the checkbox (blue = activated). After you activate the checkbox, note that the button "Continue" below the screen switched to "Create Eigenpod address":</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2024/02/Untitled-36.png" class="kg-image" alt loading="lazy" width="984" height="842" srcset="https://p2p.org/economy/content/images/size/w600/2024/02/Untitled-36.png 600w, https://p2p.org/economy/content/images/2024/02/Untitled-36.png 984w" sizes="(min-width: 720px) 720px"></figure><p>4. Now, we need to create an Eigenpod address by pressing the following button. The creation of an Eigenpod address happens by calling the Eigenlayer smart contract. As the user requests the calling of a smart contract in the Ethereum network, you must pay Gas for the Eigenpod transaction and sign it in your wallet.</p><p>5. After the user has signed the transaction, the Eigenpod address will be created, and its withdrawal credentials will be automatically filled in the 'Withdrawal address' field in 'Advanced settings.' Pressing the Continue button to continue the process:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2024/02/Untitled-37.png" class="kg-image" alt loading="lazy" width="976" height="1330" srcset="https://p2p.org/economy/content/images/size/w600/2024/02/Untitled-37.png 600w, https://p2p.org/economy/content/images/2024/02/Untitled-37.png 976w" sizes="(min-width: 720px) 720px"></figure><div class="kg-card kg-callout-card kg-callout-card-grey"><div class="kg-callout-emoji">⚠️</div><div class="kg-callout-text">Based on the Eigenlayer system design, you will receive CL rewards on the created EigenPod address, while your EL rewards will be sent to Eigenpod’s owner address (the wallet you used to create Eigenpod). Since you are using our flow, your Eigenpod owner’s address is the one you are connected to our dApp during this staking process.</div></div><p>6. The system will start the staking process and will show you the final staking details. Review details, and press the 'Stake' button.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2024/02/Untitled-38.png" class="kg-image" alt loading="lazy" width="974" height="1310" srcset="https://p2p.org/economy/content/images/size/w600/2024/02/Untitled-38.png 600w, https://p2p.org/economy/content/images/2024/02/Untitled-38.png 974w" sizes="(min-width: 720px) 720px"></figure><p>7. The dApp will ask you to sign the transaction with your Web3 wallet. After signing and the transaction pending, the system will confirm that your stake is done successfully!</p><h3 id="watch-a-video-tutorial-here">Watch a video tutorial here:</h3><figure class="kg-card kg-embed-card"><iframe width="200" height="113" src="https://www.youtube.com/embed/otF8VpSRMvo?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen title="Restaking Ethereum with P2P.org and EigenLayer using dApp (step-by-step)"></iframe></figure><p></p><h2 id="how-to-restake-with-a-new-or-existing-eigenpod-address">How to restake with a new or existing EigenPod address:</h2><p>To restake, you first need to set up an EigenPod address that will be connected to your wallet. This EigenPod address will be the withdrawal address in the P2P.org staking dApp. To do this:</p><p>1. Go to <a href="https://app.eigenlayer.xyz/?ref=p2p.org" rel="noopener noreferrer">https://app.eigenlayer.xyz/</a> and connect a wallet:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2024/02/image-2.png" class="kg-image" alt loading="lazy" width="2000" height="1225" srcset="https://p2p.org/economy/content/images/size/w600/2024/02/image-2.png 600w, https://p2p.org/economy/content/images/size/w1000/2024/02/image-2.png 1000w, https://p2p.org/economy/content/images/size/w1600/2024/02/image-2.png 1600w, https://p2p.org/economy/content/images/2024/02/image-2.png 2000w" sizes="(min-width: 720px) 720px"></figure><p>2. Click "Create EigenPod" and confirm this transaction in your wallet:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2024/02/image-3.png" class="kg-image" alt loading="lazy" width="2000" height="1180" srcset="https://p2p.org/economy/content/images/size/w600/2024/02/image-3.png 600w, https://p2p.org/economy/content/images/size/w1000/2024/02/image-3.png 1000w, https://p2p.org/economy/content/images/size/w1600/2024/02/image-3.png 1600w, https://p2p.org/economy/content/images/2024/02/image-3.png 2000w" sizes="(min-width: 720px) 720px"></figure><p>3. A confirmation message will confirm your EigenPod was created successfully:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2024/02/image-4.png" class="kg-image" alt loading="lazy" width="2000" height="1130" srcset="https://p2p.org/economy/content/images/size/w600/2024/02/image-4.png 600w, https://p2p.org/economy/content/images/size/w1000/2024/02/image-4.png 1000w, https://p2p.org/economy/content/images/size/w1600/2024/02/image-4.png 1600w, https://p2p.org/economy/content/images/2024/02/image-4.png 2000w" sizes="(min-width: 720px) 720px"></figure><p>4. Click "Pod Details" and copy your EignePod address:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2024/02/image-5.png" class="kg-image" alt loading="lazy" width="2000" height="1276" srcset="https://p2p.org/economy/content/images/size/w600/2024/02/image-5.png 600w, https://p2p.org/economy/content/images/size/w1000/2024/02/image-5.png 1000w, https://p2p.org/economy/content/images/size/w1600/2024/02/image-5.png 1600w, https://p2p.org/economy/content/images/2024/02/image-5.png 2000w" sizes="(min-width: 720px) 720px"></figure><p>5. Visit <a href="https://eth.p2p.org/?ref=p2p.org" rel="noopener noreferrer">eth.p2p.org</a> to complete the next step in the process: Staking your ETH to an Ethereum validator. This step takes around two minutes and does not require registration or completing KYC. The below image shows how to complete this simple process: <strong>You need to turn on the checkbox Eigenlayer restaking and set your EigenPod address as the validator Withdrawal address in Advanced settings:</strong></p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2024/02/Untitled-39.png" class="kg-image" alt loading="lazy" width="980" height="1330" srcset="https://p2p.org/economy/content/images/size/w600/2024/02/Untitled-39.png 600w, https://p2p.org/economy/content/images/2024/02/Untitled-39.png 980w" sizes="(min-width: 720px) 720px"></figure><div class="kg-card kg-callout-card kg-callout-card-grey"><div class="kg-callout-emoji">🔒</div><div class="kg-callout-text"><a href="http://p2p.org/?ref=p2p.org"><i><em class="italic" style="white-space: pre-wrap;">P2P.org</em></i></a><i><em class="italic" style="white-space: pre-wrap;">'s unique feature enables MEV rewards for stakers with an EigenPod address. What's crucial is that, by default, EigenPod does not accept MEV rewards. Check the next paragraph for further details</em></i>.<i><em class="italic" style="white-space: pre-wrap;">Validators propose new blocks and receive rewards, which include MEV, to their execution rewards address. Technically, the withdrawal address and the execution rewards address can be different. However, to simplify the staking process, most operators set the withdrawal address as the execution rewards address by default. However, this poses an issue for restaking: EigenPod doesn't accept direct transactions from MEV bots, which means it can't receive most MEV rewards either.We resolve this issue by automatically checking if you have put EigenPod as your withdrawal address. In such cases, we extract your EigenPod owner's wallet and use it as the execution rewards recipient address. This ensures that your MEV rewards are completely secure.</em></i></div></div><p><br>6. After staking completion, your validators will enter the validator entry queue, and by the time you're live, your EigenPod balance, will immediately reflect the stake. You can check the current activation time in our <a href="https://p2p.org/networks/ethereum/queue?ref=p2p.org" rel="noopener noreferrer">Ethereum queue dashboard</a>.</p><h3 id="watch-a-video-tutorial-here-1">Watch a video tutorial here:</h3><figure class="kg-card kg-embed-card"><iframe width="200" height="113" src="https://www.youtube.com/embed/RduD_-s1HH0?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen title="Restaking Ethereum with EigenLayer and P2P.org (for users with EigenPod address, step-by-step)"></iframe></figure><p></p><h2 id="qa">Q&A:</h2><p><strong>How can I do restaking for EigenLayer?</strong></p><p>We have a simple guide for restaking; check it out here: <a href="https://p2p.org/economy/eigen-layer-restaking-with-p2p-org-guide/">https://p2p.org/economy/eigen-layer-restaking-with-p2p-org-guide/</a></p><p><strong>What are the Restaking points?</strong></p><p>Rewards and how they are distributed are still a work in progress. The Eigen Layer team plans to share more details in 2024Q2. For now, extra rewards are distributed by Eigenlayer in Restaking points. Restaking points measure your contribution to the shared security of the EigenLayer ecosystem, the temporary proof of your participation in the EigenLayer network. You will receive Restaking points in your Eigenpod during the restaking process.</p><p><strong>How many Restaking points will I get for restaking?</strong></p><p>Restaking points are a measure of staking participation equal to the time-integrated amount staked in units of ETH*hours. You can read here more about how this share is measured in Eigenlayer documentation about Restaking points: <a href="https://docs.eigenlayer.xyz/eigenlayer/restaking-guides/restaking-user-guide/restaked-points?ref=p2p.org">https://docs.eigenlayer.xyz/eigenlayer/restaking-guides/restaking-user-guide/restaked-points</a></p><p><strong>What risks are involved with restaking?</strong></p><p>Restaking, while offering additional rewards, also brings with it inherent risks. Validators participating in restaking face potential penalties from Ethereum and EigenLayer if they violate network consensus rules.</p><p>Moreover, validators' withdrawal credentials are tied to EigenLayer's upgradeable Eigenpod smart contracts, introducing further elements of complexity and risk.</p><p>A comprehensive risks <a href="https://docs.eigenlayer.xyz/eigenlayer/risk/risk-faq?ref=p2p.org">FAQ by Eigen Layer</a> covers all risks;</p><p><strong>What about Eigenlayer slashing risks?</strong></p><p>There is no slashing until the protocol upgrade in the second half of 2024, giving new protocols and operators enough time to develop a robust risk mitigation framework.</p><p>In the future, validators participating in restaking face potential penalties from Ethereum and EigenLayer if they violate network consensus rules. So operators should carefully setup infrastructure and choose AVSes to run. Regarding native vs. LST, native restaking is a much safer option than restaking LST tokens, since your withdrawal credentials are associated with smart contracts under your management.</p><p><strong>How Eigenlayer addresses restaking risks?</strong></p><ol><li>Smart contracts are audited, and a <a href="https://docs.eigenlayer.xyz/eigenlayer/security/bug-bounty?ref=p2p.org">$2 million bug bounty program</a> has been initiated since December 2023, underscoring its commitment to ongoing security enhancements.</li><li>There is a community multisig (<a href="http://p2p.org/?ref=p2p.org">P2P.org</a> is one of 13 members). In extraordinary circumstances, the Community Multisig can perform emergency actions, including immediately executing time-critical upgrades or replacing the Operations Multisig in the event of private key compromise. <a href="https://docs.eigenlayer.xyz/eigenlayer/security/multisig-governance?ref=p2p.org">https://docs.eigenlayer.xyz/eigenlayer/security/multisig-governance</a></li><li>There is no slashing until the protocol upgrade in the second half of 2024, giving new protocols and operators enough time to develop a robust risk mitigation framework.</li><li>Regarding unintentional slashing due to protocol/AVS mistakes, EigenLayer establishes a "slashing council." This council will oversee and adjudicate any slashing incidents, ensuring fairness and accuracy in administering penalties while the slashing mechanism evolves. The slashing event doesn't burn ETH; it only freezes it on the EigenPod address. This freeze can be removed by slashing the council. That will secure early restakers from slashing losses due to AVS/protocol mistakes.</li></ol><p><strong>How to exit from Eigenlayer?</strong></p><p>After validators are exited from the Ethereum network, your ETH transfers to the EigenPod address, and after a 7-day lock period, you can withdraw them from EigenPod.</p><h2 id="contact-us">Contact Us:</h2><p><em>Do not hesitate to ask questions in our </em><a href="https://t.me/P2Pstaking?ref=p2p.org"><em>Telegram chat</em></a><em> <br>We are always open for communication.</em><br><br>We encourage you to check our website and start our staking journey together!</p><div class="kg-card kg-button-card kg-align-center"><a href="https://p2p.org/ethereum?ref=p2p.org" class="kg-btn kg-btn-accent">Stake with us!</a></div><hr><p><strong>Web:</strong> <a href="https://p2p.org/?ref=p2p.org">https://p2p.org</a><br><strong>Blog:</strong> <a href="https://p2p.org/economy/">https://p2p.org/economy</a><br><strong>Twitter:</strong> <a href="https://twitter.com/p2pvalidator?ref=p2p.org">@p2pvalidator</a><br><strong>Telegram:</strong> <a href="https://t.me/P2Pstaking?ref=p2p.org">https://t.me/P2Pstaking</a></p>
from p2p validator
<p><strong>Introduction:</strong></p><p>Our team has been hard at work, and we're pleased to say that the new direct ETH staking app is now live in the Safe Apps Ecosystem. This blog post will guide you through how to use the P2P.org Non-Custodial direct ETH Staking App on Safe. Discover how to set up your wallet integration, find additional support from us, and seize the opportunity to stake your ETH effortlessly.</p><p></p><p><strong>The P2P.org App with Safe</strong></p><p>Safe is one of the most trusted decentralized custody protocols and collective asset management platforms on Ethereum. Holding and safeguarding billions of dollars in assets, Safe provides secure and <a href="https://www.google.com/url?q=https://docs.safe.global/learn/security/security-audits&sa=D&source=docs&ust=1686751866991915&usg=AOvVaw0Vm0CRfgmqRZjLRGu-89ff">audited</a> smart contract accounts for individuals and organizations.</p><p>The first-of-its-kind app on the Safe Apps Ecosystem allows users to quickly and easily direct stake ETH with just a few clicks while maintaining full custody of their assets.</p><p>Additionally, it will enable clients to avoid smart contract risks associated with liquid staking protocols. At the time of this article being created, Safe currently stores $39B+ in digital assets for its users. <br></p><p>The P2P.org Safe App integration is another step towards our vision to support non-custodial staking services to a growing DeFi community whilst allowing full ownership over your digital assets. Additionally, Safe users will still benefit from P2P.org's slashing protection guarantee when they direct stake their ETH through the app.</p><figure class="kg-card kg-video-card"><div class="kg-video-container"><video src="https://p2p.org/economy/content/media/2023/06/Safe-New.mp4" poster="https://img.spacergif.org/v1/1920x1080/0a/spacer.png" width="1920" height="1080" playsinline preload="metadata" style="background: transparent url('https://p2p.org/economy/content/images/2023/06/media-thumbnail-ember210.jpg') 50% 50% / cover no-repeat;"></video><div class="kg-video-overlay"><button class="kg-video-large-play-icon"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><path d="M23.14 10.608 2.253.164A1.559 1.559 0 0 0 0 1.557v20.887a1.558 1.558 0 0 0 2.253 1.392L23.14 13.393a1.557 1.557 0 0 0 0-2.785Z"/></svg></button></div><div class="kg-video-player-container"><div class="kg-video-player"><button class="kg-video-play-icon"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><path d="M23.14 10.608 2.253.164A1.559 1.559 0 0 0 0 1.557v20.887a1.558 1.558 0 0 0 2.253 1.392L23.14 13.393a1.557 1.557 0 0 0 0-2.785Z"/></svg></button><button class="kg-video-pause-icon kg-video-hide"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><rect x="3" y="1" width="7" height="22" rx="1.5" ry="1.5"/><rect x="14" y="1" width="7" height="22" rx="1.5" ry="1.5"/></svg></button><span class="kg-video-current-time">0:00</span><div class="kg-video-time">/<span class="kg-video-duration"></span></div><input type="range" class="kg-video-seek-slider" max="100" value="0"><button class="kg-video-playback-rate">1×</button><button class="kg-video-unmute-icon"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><path d="M15.189 2.021a9.728 9.728 0 0 0-7.924 4.85.249.249 0 0 1-.221.133H5.25a3 3 0 0 0-3 3v2a3 3 0 0 0 3 3h1.794a.249.249 0 0 1 .221.133 9.73 9.73 0 0 0 7.924 4.85h.06a1 1 0 0 0 1-1V3.02a1 1 0 0 0-1.06-.998Z"/></svg></button><button class="kg-video-mute-icon kg-video-hide"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><path d="M16.177 4.3a.248.248 0 0 0 .073-.176v-1.1a1 1 0 0 0-1.061-1 9.728 9.728 0 0 0-7.924 4.85.249.249 0 0 1-.221.133H5.25a3 3 0 0 0-3 3v2a3 3 0 0 0 3 3h.114a.251.251 0 0 0 .177-.073ZM23.707 1.706A1 1 0 0 0 22.293.292l-22 22a1 1 0 0 0 0 1.414l.009.009a1 1 0 0 0 1.405-.009l6.63-6.631A.251.251 0 0 1 8.515 17a.245.245 0 0 1 .177.075 10.081 10.081 0 0 0 6.5 2.92 1 1 0 0 0 1.061-1V9.266a.247.247 0 0 1 .073-.176Z"/></svg></button><input type="range" class="kg-video-volume-slider" max="100" value="100"></div></div></div></figure><p><strong>How to Set Up Your P2P.org Safe Wallet Integration:</strong></p><ul><li>Visit the Safe website: <a href="https://safe.global/?ref=p2p.org">https://safe.global/</a>.</li><li>Click on "Launch Wallet" to access your dashboard.</li><li>On the left-hand side, locate and click on "Apps" to enter the apps ecosystem.</li><li>Search for "P2P" or "P2P.org" to find the P2P.org app.</li><li>Select the app and click on "Open Safe App."</li><li>Read the Disclaimer and press "Continue."</li><li>Next, review the User Terms, tick the box to accept, and click "Accept."</li><li>Enter the amount of ETH you wish to stake (remember, the minimum requirement is 32 ETH), and click "Continue." This will set up the validator and infrastructure, which may take up to one minute.</li><li>Confirm the staking details on the screen, then click "Stake ETH" and confirm the transaction in your wallet.</li><li>Once the transaction is indexed, you can view it in the pending queue. Feel free to click the "Chat with us" button to connect with our customer support via the Telegram group <a href="https://t.me/P2Pstaking?ref=p2p.org">@P2Pstaking</a>.</li><li>Head back to your dashboard to access the details of your staked ETH and monitor the status of your transaction.</li><li>If you encounter any questions or need further assistance, our dedicated support team is here to help. Join our Telegram group @P2Pstaking to connect with our knowledgeable staff and engage with the P2P.org community.</li></ul><p>You should now all be set up and ready to embark on your staking journey with P2P.org's direct ETH Staking App on Safe. Enjoy the benefits of secure and hassle-free staking while maintaining complete control and ownership of your assets. <br></p><div class="kg-card kg-button-card kg-align-center"><a href="https://app.safe.global/share/safe-app?appUrl=https%3A%2F%2Feth.p2p.org&chain=eth&ref=p2p.org" class="kg-btn kg-btn-accent">Stake with safe</a></div><p></p>
from p2p validator
<p><em>P2P.org recently launched a public pool on Aptos, and we are currently working towards accumulating a stake of 1 million to activate our node. If you’re interested in partnering with us, please feel free to reach out by contacting [email protected] or reaching us on Telegram at @P2P_staking.</em></p><p>Aptos is a Layer 1 blockchain heavily backed by an impressive group of VC funds, a16z, Tiger Global, Katie Haun, Multicoin Capital, Coinbase Ventures, Binance Labs and PayPal Ventures. With its own programming language called Move, strong partnerships, and a focus on technology, this blockchain holds great potential for real-world applications based on interest from various tech giants. On April 20th, delegated staking was launched, and P2P.org aims to provide you with all the information you need before starting your Aptos staking journey. Additionally, we conducted analytical research comparing the pace of staking adoption to a similar Layer 1 competitor.</p><p><strong>Currently, six node providers are available for staking</strong>, most of whom are well-known players in the crypto world. For example, Jump-Crypto has built a wormhole bridge connecting over 20 networks, and B-Ware labs led the development of delegated staking on Aptos. The network security is robust, backed by over 100 validators from around the globe using a different private staking mechanism. There is also a liquid staking opportunity called Tortuga Finance.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/05/2586.png" class="kg-image" alt loading="lazy" width="1680" height="734" srcset="https://p2p.org/economy/content/images/size/w600/2023/05/2586.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/05/2586.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/05/2586.png 1600w, https://p2p.org/economy/content/images/2023/05/2586.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>Node providers start generating rewards only after the total stake reaches over one million APT, approximately $9 million (as of 24.05.23). Currently, over ten inactive validators are still seeking enough stake to become active.</p><p><strong>The Annual Percentage Rate (APR) on Aptos is 7%</strong> and depends on a validator's uptime and commission. So far, all validators have been performing well, and there haven't been any significant downtime periods. There is no slashing, and the minimum commission is 7%, resulting in a final yield increase of approximately 6.5%.</p><p><strong>The validator unlock period varies from a few hours to 30 days</strong>, depending on when you unstake your APT. For example, if you stake 10 days into the cycle, you must wait 20 days to unlock your tokens. Once the unlock date has passed, you can withdraw your tokens.</p><p><strong>The minimum stake required is 11 APT</strong>, and there is also a staked fee. You may notice that the amount you have staked is less than the total stake you added. This is because you start earning rewards when the next epoch begins. However, this fee is then returned at the end of the current epoch.</p><p>Staking can be done directly from the main Aptos Explorer <a href="https://explorer.aptoslabs.com/validators/delegation?network=mainnet&ref=p2p.org">page</a>. All you need to do is connect one of the supported wallets (Petra, Pontem, Martian, Blocto, to name a few), choose a validator, and click the "stake" button. Our pool is called p2p-org.</p><p><strong>How quickly does the staking amount grow?</strong> Is the pace fast enough to instil confidence in token holders regarding Aptos as a long-term investment? How many institutions and whales are involved in staking? To answer these questions, let's compare Aptos to a similar Layer 1 blockchain, Near. For a fair comparison, let's return to October 2020, during the early stages of staking on Near.<br></p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/05/2583.png" class="kg-image" alt loading="lazy" width="1680" height="971" srcset="https://p2p.org/economy/content/images/size/w600/2023/05/2583.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/05/2583.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/05/2583.png 1600w, https://p2p.org/economy/content/images/2023/05/2583.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>As we can see, the lines are quite uniform, except for the significant spikes that occurred on Aptos on days 3 and 23. These spikes result from the requirement of reaching a threshold of 1 million APT for a public node to become active. On those days, several large public pools joined the validation set, particularly on day 23 when a pool with over 14 million APT entered. In Near, at that time, the total of 100 biggest validators was required, so the minimum stake needed was not predetermined, resulting in a smoother line.</p><p><strong>Now let's examine who delegates on Aptos.</strong></p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/05/2584.png" class="kg-image" alt loading="lazy" width="1680" height="971" srcset="https://p2p.org/economy/content/images/size/w600/2023/05/2584.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/05/2584.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/05/2584.png 1600w, https://p2p.org/economy/content/images/2023/05/2584.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>As we can see from the table, the majority of the stake is held by a few large institutions on both networks. However, this distinction is more significant on Aptos. You cannot start a pool and wait for small delegators to collectively generate 1M APT. They are more likely to stake with active pools to generate rewards. Therefore, you must find a large partner who can stake 1M APT at once.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/05/2585.png" class="kg-image" alt loading="lazy" width="1680" height="739" srcset="https://p2p.org/economy/content/images/size/w600/2023/05/2585.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/05/2585.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/05/2585.png 1600w, https://p2p.org/economy/content/images/2023/05/2585.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>The table shows that only 15 delegators own 98.7% of the total stake. Most of them staked their tokens before the pools became active. Their total Total Value Locked (TVL) in USD is nearly $290,000,000, accounting for 85% of all delegated stake. However, this comparison is uneven because, at this stage, the Aptos foundation hadn't yet bootstrapped the validators, and there are only 6 mainnet participants who essentially stake their own money through the mechanism. This distribution will normalise when over 100 private validators join public staking.</p><p>Aptos delegated staking represents a significant milestone in the network's roadmap, although it is still in the early stages of development, with only a few participants currently involved. Despite this, there is noticeable interest in staking within the community, with a sufficient number of small and medium-sized delegators. However, the majority of stakers are still large investors. In contrast to Near, Aptos has gained support from major VC funds and global tech giants. This offers the potential for significant collaboration projects (e.g. Google Cloud partnership). According to Aptos, this is expected to accelerate the adoption of web3 and lead to numerous real-world applications of crypto solutions.</p>
from p2p validator
<p>If you hold SUI tokens, you can help secure the network by delegating to validators on the mainnet. This way, proof of stake delegators can keep or grow their percentage of the total supply over time.</p><h3 id="why-delegate-sui">Why delegate Sui?</h3><p>Sui network rewards participants with extra subsidies from 10% of the total supply, on top of gas fee rewards. Delegation is non-custodial, so validators cannot access or take your tokens. Sui does not slash your initial delegation, but your staking rewards may be lost if validators perform poorly. So choose your validators carefully.</p><p>P2P.org is a trusted SUI validator that participated in all pre-mainnet tests, including the validator game. We have over six years of experience validating 40+ proof of stake networks with top ratings. Our support team is available 24/7 to assist you or answer your questions. You can join our <a href="https://t.me/P2Pstaking?ref=p2p.org">telegram</a> channel or visit https://p2p.org/ website for more information.</p><h3 id="step-by-step-staking-instruction">Step-by-step staking instruction</h3><p>To start, you need to download <a href="https://chrome.google.com/webstore/detail/sui-wallet/opcgpfmipidbgpenhmajoajpbobppdil?ref=p2p.org">Sui wallet browser extension</a> for Chrome</p><ul><li>Register in Sui wallet. You might lose control over your funds if you lose access to your seed phrase. Save it in a safe place. You can unlock Sui wallet from your device using the password.</li></ul><figure class="kg-card kg-image-card"></figure>
from p2p validator
<p>Data analytics is an important part of any blockchain's lifecycle. It provides valuable insights into the network's behaviour, allows for informed decision-making, and helps improves performance.</p><p>It is not only important but necessary to implement a data-driven approach from an early stage, such as during the test-net phase. This approach can help identify and resolve issues, predict the emergence of new ones, facilitate the resolution of multiple challenges on the path to the mainnet, and ensure that the final product is robust and reliable.</p><p>Performing data analytics on Celestia can be challenging due to its modular architecture, which requires a unique approach to data storage and indexing. However, leveraging our expertise in working with indexers and cutting-edge technology, we propose developing a comprehensive set of open-source tools for data indexing and storage. This will enable efficient and reliable data management solutions within the Celestia blockchain.</p><h3 id="what-to-analyze-in-celestia">What to analyze in Celestia?</h3><p>To understand how the Celestia network grows and operates, we propose analyzing a set of metrics that depict different product aspects. As the network's future is expected to consist of a variety of rollups, it should be possible to drill down to the level of a particular rollup in addition to a high-level system overview. Metrics will form certain benchmarks and trends, enabling health checks and predictions.</p><p><strong>Measures of demand for Celestia's Data Availability Layer.</strong></p><p>The metrics below will help evaluate the scale and rate of adoption, and identify the main consumers and their costs. This is a major part of Celestia's tokenomics.</p><ul><li>Number of data requests (ever/per period/per sender/rollup)</li><li>Number of unique request senders/rollups (ever/per period) - this is the number of entities that use DA</li><li>Amount of data requested (ever/per period/average per sender/rollup)</li><li>Fees paid for data (per request/per sender/rollup)</li></ul><p><strong>Measures of Data Availability Layer operation quality.</strong></p><p>While it is valuable to see how Celestia is used, it is also important to track the robustness of the network. Therefore, the following metrics can be used to provide an idea of whether operational requirements are met, security (light nodes for sampling) is ensured, and requests are fulfilled in a timely manner.</p><ul><li>Percentage of fulfilled requests (ever, per period, and per rollup).</li><li>Percentage of data made available (ever, per period, and per rollup).</li><li>Average actual number of light nodes in DAS per rollup per request (ever, per period) and average minimum required light nodes in DAS per rollup per request (ever, per period).</li><li>Average time it takes to fulfill requests after transaction is sent.</li></ul><h3 id="how-to-analyze">How to analyze?</h3><p><a href="https://p2p.org/?ref=p2p.org">P2P.org</a> has already developed a solution that can easily extract raw data from any Cosmos chain - the <a href="https://p2p.org/?ref=p2p.org">P2P.org</a> Any-Cosmos-Chain Indexer. While Celestia may have specific data structure requirements, we are confident that we will not need to start development from scratch.</p><p>The Indexer source is open source and can be deployed and launched by anyone to access raw data. <a href="https://p2p.org/?ref=p2p.org">P2P.org</a> suggests running an indexer on their own infrastructure, which includes an Indexer instance, a database for storing data, and several nodes for running data extraction. This provides an end-to-end solution for community data analysis.</p><p>Data can be stored in any database, but <a href="https://p2p.org/?ref=p2p.org">P2P.org</a> offers to store it in a public DWH project. This is the best way to integrate a data-driven culture into your project, by having a public dataset with all the necessary data. An example of a CosmosHub public dataset, consisting of raw data from our indexer on CosmosHub, is available.</p><p>Currently, we use Google BigQuery to share this data with the community, but we plan to provide totally-free access to the data in the future. For now, you need a Google account with a free trial to query the data for free.</p><p>With the raw data, you can do anything, including data mining and providing analysis. Our main purpose is to extract knowledge from the data source. We take raw data and transform it into structured domain data which consists of metric definitions and metric history storage.</p><p>However, the main goal of any data analysis and research is transparency, clarity, and data visibility. The best way to achieve this is to build a public dashboard. <a href="https://p2p.org/?ref=p2p.org">P2P.org</a> supports Looker (Google BI system) and Superset as BI for public dashboards, but also works with custom front-end solutions. This is just the tip of the iceberg in <a href="https://p2p.org/?ref=p2p.org">P2P.org</a> data analysis process. Anyone who wants to understand and control the situation needs public dashboards to share insights and attract attention from the community.</p><p>We welcome any feedback and look forward to receiving the green light to begin.</p>
from p2p validator
<p>Sui network allocated 10% of the total supply to incentivize participants with additional subsidies paid on top of gas fee rewards. It allows proof of stake delegators to maintain or increase their share of the total supply over time.</p><h3 id="what-is-sui-staking">What is SUI staking?</h3><p>Every SUI token holder can improve network security by delegating to mainnet validators. The process is non-custodial, and validators cannot control or steal delegated tokens. Sui does not imply slashing of initial delegation. If validators cannot maintain good performance, it can result in staking rewards being seized. It is essential to select validators wisely.</p><p>P2P.org is an early SUI validator that participated in all pre-mainnet testing phases, including the validator game. Our team has over six years of experience validating 40+ proof of stake networks with AAA staking rewards ratings. Our 24/7 support team is eager to help or answer your questions, feel free to join our <a href="https://t.me/P2Pstaking?ref=p2p.org">telegram</a> channel or visit <a href="https://p2p.org/?ref=p2p.org">https://p2p.org/</a> website.</p><h3 id="step-by-step-staking-instruction">Step-by-step staking instruction</h3><p>To start you need to download <a href="https://chrome.google.com/webstore/detail/sui-wallet/opcgpfmipidbgpenhmajoajpbobppdil?ref=p2p.org">Sui wallet browser extension</a> for Chrome</p><ul><li>Register in Sui wallet. You might lose control over your funds if you lose access to your seed phrase. Save it in a safe place. You can unlock Sui wallet from your device using the password.</li></ul><figure class="kg-card kg-image-card"></figure>
from p2p validator
<p>The world of blockchains is evolving rapidly, with innovations and improvements in design and user experience. The goal is to create a platform that can serve the needs and aspirations of billions of people worldwide. Today, we are excited to celebrate the launch of Sui - a next-generation layer one blockchain with modular architecture and parallel execution powered by Move language.</p><p>Sui uses a proof of stake mechanism that aligns validators' incentives with the network's long-term health. The team introduces the reference gas price (RGP) and storage fund to ensure predictable and affordable gas costs for users and to cover the data storage costs for validators. For every epoch, validators collectively choose the RGP, which determines their expected gas fee revenue. The storage fund is a pool of funds compensating validators for storing data on the chain over time.</p><p>Sui is based on an object-oriented data model, where each object is a data piece with its own identifiers and attributes. Users can freeze objects or share them without giving up their ownership rights. This allows for more flexibility and creativity in designing applications on Sui, including collaborative scenarios. For example, users can share the game object with a streaming platform object to broadcast the game live or freeze the game object to preserve its original version.</p><p><em>We are proud to be a genesis validator for Sui mainnet after participating in all the testing phases. This aligns with our vision of supporting the most cutting-edge projects fostering adoption in the blockchain space.</em></p><p>Our infrastructure is secure, reliable, and distributed across different locations. We have a dedicated team of experts monitoring infrastructure 24/7 and ensuring smooth and timely upgrades. We also have a robust alert system that enables us to respond quickly to any issues or updates.</p><p><em>If you hold SUI tokens, you can delegate them to our public node and earn rewards for securing the network.</em></p><h3 id="about-sui">About Sui</h3><p>Sui is a revolutionary blockchain network that aims to achieve high scalability and low costs while maintaining fast and secure transactions. Sui team has a wealth of experience and expertise in building scalable and secure systems since working on Novi/Diem at Meta. Sui has also attracted the support of prominent investors such as Jump, a16z, Binance Labs, Kosmos VC, and many others.</p><p>To find out more and join the community, visit the official<a href="https://sui.io/?ref=p2p.org"> Sui website</a>,<a href="https://sui.io/developers?ref=p2p.org"> developer portal</a> and join<a href="https://discord.gg/sui?ref=p2p.org"> Discord</a></p><h3 id="about-p2p">About P2P</h3><p>P2P Validator is a leading staking provider with a proven track record and best-in-class security standards. We carefully select evaluating the most promising networks and offer only the best staking opportunities. As of the latest update, over 1.5 billion USD worth of assets staked with us by more than 40,000 delegators across 35+ networks. We have also successfully participated in all phases of Sui testing prior mainnet. P2P is committed to the long-term success of Sui ecosystem.</p><p>Feel free to join the P2P community, visit the <a href="https://p2p.org/?ref=p2p.org">official website</a>, and subscribe to our<a href="https://twitter.com/P2Pvalidator?ref=p2p.org"> Twitter</a> and<a href="https://t.me/P2Pstaking?ref=p2p.org"> Telegram</a>.</p>
from p2p validator
<p>The Shapella upgrade, which happened on April 12, 2023, has been the most significant event for Ethereum since The Merge in September 2022. In our <a href="https://p2p.org/economy/the-shapella-upgrade-a-deep-dive-into-withdrawals/" rel="noopener noreferrer">recent article</a>, we explored the important features of the Shapella upgrade, with a focus on partial and full withdrawals. In this article, we will go deeper into the upgrade. We will look at the current network status a week after the upgrade, full and partial withdrawals, and who withdrew. We also examine how this transition affected the performance metrics of pools and operators.</p><h3 id="table-of-contents"><strong>Table of contents</strong></h3><!--kg-card-begin: markdown--><ul> <li><a href="#T1"><span style=" font-size:16px"> Network Overview </span></a></li> <li><a href="#T2"><span style=" font-size:16px"> The first hours after the upgrade </span></a></li> <li><a href="#T3"><span style=" font-size:16px"> Withdrawals<br> </span></a></li> <li><a href="#T4"><span style=" font-size:16px"> Operators performance </span></a></li> </ul> <!--kg-card-end: markdown--><!--kg-card-begin: markdown--><h2 id="network-overview-a-namet1a">Network Overview <a name="T1"></a></h2> <!--kg-card-end: markdown--><p>One week after Shapella, the current total staked amount is 17,972,763 ETH, 54k lower than the maximum on April 12th. This stake represents approximately 15.65% of the total circulating supply of Ethereum, indicating strong investor confidence in the platform. The network's effectiveness has decreased to 91.46% because it experienced minor struggles after the upgrade.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/10.png" class="kg-image" alt loading="lazy" width="1680" height="307" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/10.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/10.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/10.png 1600w, https://p2p.org/economy/content/images/2023/04/10.png 1680w" sizes="(min-width: 720px) 720px"></figure><!--kg-card-begin: markdown--><h2 id="the-first-hours-after-the-upgrade-a-namet2a">The First hours after the upgrade <a name="T2"></a></h2> <!--kg-card-end: markdown--><p>The most noticeable inaccuracies occurred in the first three hours after the activation slot. During this period, around 15% of blocks were missed, 7% of attestations did not occur, and approximately 30% of head votes were incorrect. Naturally, these inaccuracies led to a decrease in the share of consensus layer rewards. It should also be noted that the correlation between incorrect head votes and missed blocks is observed due to consensus rules - the lifetime of attestation of a valid head vote block is one slot, and if it is not submitted, then there was no block.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/11.png" class="kg-image" alt loading="lazy" width="1680" height="1679" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/11.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/11.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/11.png 1600w, https://p2p.org/economy/content/images/2023/04/11.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>Going into detail, we have identified several reasons for the network indicators observed in the first hours after the update. Firstly, the reduced percentage of correct attestations suggests that up to 9% of validators were not updated, which directly affected block misses. Secondly, <a href="https://github.com/prysmaticlabs/prysm/pull/12263?ref=p2p.org">Prysm experienced problems with obtaining MEV-blocks</a>. It was unable to produce blocks while connected to relays. Thirdly, <a href="https://github.com/sigp/lighthouse/issues/4184?ref=p2p.org">Lighthouse was 100% CPU-loaded for about 2 hours</a>, which led to missed attestations and late block proposing. Another reason, in our experience, is that the Teku client took a long time, about 15 seconds, to import blocks, causing lag on the network. These facts highlight the importance of client diversity in ensuring network stability.</p><p>However, the minor nature of the problems is confirmed by the fact that with each epoch, effectiveness slowly but constantly improved, and in a day, though not without emergency releases of CL clients, it reached the usual indicators.</p><p>Additionally, with the Capella update, validators who specified the "old" BLS address as withdrawal credentials were able to change it to the ETH1 address with the 0x01 prefix. This operation requires more RAM, bandwidth, and CPU power from the CL Node in each slot and <a href="https://twitter.com/TimBeiko/status/1646289478326145026?ref=p2p.org">had a small impact on the degradation of network performance metrics</a>.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/12.png" class="kg-image" alt loading="lazy" width="1680" height="970" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/12.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/12.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/12.png 1600w, https://p2p.org/economy/content/images/2023/04/12.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>In the first 6 days, 226k validators changed their addresses, it’s about 70% of all validators with BLS withdrawal credentials. This means that the time needed for one iteration of the withdrawal clock has increased significantly, but has not reached its maximum.</p><!--kg-card-begin: markdown--><h2 id="withdrawals-a-namet3a">Withdrawals <a name="T3"></a></h2> <!--kg-card-end: markdown--><p>The Shapella upgrade introduces two types of withdrawals: full withdrawals (also known as exits) and partial withdrawals (staking reward collection). If you would like to dive deeper into how withdrawals work, you can explore our <a href="https://p2p.org/economy/the-shapella-upgrade-a-deep-dive-into-withdrawals/" rel="noopener noreferrer">Shapella Upgrade article</a>.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/13.png" class="kg-image" alt loading="lazy" width="1680" height="1230" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/13.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/13.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/13.png 1600w, https://p2p.org/economy/content/images/2023/04/13.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>After the Ethereum update, the total amount of Ethereum withdrawn was found to be 1,323,637 ETH, with only 1.6% of validators exiting the system. This withdrawal led us to analyze the amount of Ethereum that was sold on DEX, and we found that only 0.25% of the total ETH was actually sold.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/14.png" class="kg-image" alt loading="lazy" width="1680" height="982" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/14.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/14.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/14.png 1600w, https://p2p.org/economy/content/images/2023/04/14.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>The analysis also revealed that most of the validators who withdrew were from Kraken, accounting for over 90% of the total withdrawals. The reason behind this mass withdrawal was a fine imposed by the SEC, which forced the exchange to wind down its US staking operations.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/15.png" class="kg-image" alt loading="lazy" width="1680" height="1075" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/15.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/15.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/15.png 1600w, https://p2p.org/economy/content/images/2023/04/15.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>We can see that a large number of full withdrawals occurred between April 15th and April 20th. The Kraken validators' indexes are sequential, meaning their withdrawals also occurred sequentially. As a result, we observe large volumes on those days. All 333k ETH withdrawn from Kraken's validators is currently being held in the withdrawal address 0x210b3cb99fa1de0a64085fa80e18c22fe4722a1b.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/16.png" class="kg-image" alt loading="lazy" width="1680" height="1065" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/16.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/16.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/16.png 1600w, https://p2p.org/economy/content/images/2023/04/16.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>In addition, it’s important to note that there are currently 19,029 validators waiting to exit the active validator set. Currently, only 8 validators can exit every epoch. After that, there is a waiting period of 27 hours to ensure that the validator is unslashed. Finally, the withdrawal process involves a looped queue that can take up to 5 days. Therefore, at this time, the exit queue is approximately 12-16 days.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/17.png" class="kg-image" alt loading="lazy" width="1680" height="971" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/17.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/17.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/17.png 1600w, https://p2p.org/economy/content/images/2023/04/17.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>The number of validators in the exit queue is gradually decreasing. Our analysis suggests that over 72% of active exiting validators belong to centralized exchanges (CEX). Meanwhile, the number of validators waiting to enter the active validator set is increasing and currently stands at 8,152.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/18--1-.png" class="kg-image" alt loading="lazy" width="1680" height="931" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/18--1-.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/18--1-.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/18--1-.png 1600w, https://p2p.org/economy/content/images/2023/04/18--1-.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>This trend indicates a growing interest in Ethereum staking, as evidenced by the observable increase in the waiting time within the queue. Currently, the waiting time is equal to 1 day and 20 hours.</p><!--kg-card-begin: markdown--><h2 id="operators-performance-a-namet3a">Operators performance <a name="T3"></a></h2> <!--kg-card-end: markdown--><p>We examined how this transition affected on validator’s performance metrics divided by pools and operators. As we can observe, after the update on 13th April validator effectiveness dropped over 10 p.p for operators.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/19.png" class="kg-image" alt loading="lazy" width="1680" height="981" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/19.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/19.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/19.png 1600w, https://p2p.org/economy/content/images/2023/04/19.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>The effectiveness of a validator is determined by its block proposal and attestation rates, which are the measures of performing the validator’s duties like timely block proposals and attestations. Let's take a closer look at each of these indicators.</p><p>After a recent update, there were a significant number of missed blocks in the network. On April 13th, there were a total of 633 missed blocks, which is 342% higher than the number of missed blocks on April 12th. As shown in the plot, this had a negative impact on the block proposal rate and led to a drawdown.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/20.png" class="kg-image" alt loading="lazy" width="1680" height="981" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/20.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/20.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/20.png 1600w, https://p2p.org/economy/content/images/2023/04/20.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>The attestation rate is measured by three factors: participation rate, correctness, and inclusion delay.</p><p>We can see that the participation rate didn't change much after the update for most validators, except for RocketPool, whose uptime dropped by around 2.5 percentage points. However, the correctness plot shows that there were many incorrect head votes and target votes after the update. Additionally, the average inclusion distance between the attestation slots attributed and the actual slots the votes were included in, also increased.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/21--1-.png" class="kg-image" alt loading="lazy" width="2000" height="944" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/21--1-.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/21--1-.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/21--1-.png 1600w, https://p2p.org/economy/content/images/size/w2400/2023/04/21--1-.png 2400w" sizes="(min-width: 720px) 720px"></figure><p>However, during the week, the operator's performance improved, allowing them to recover to the values of the level before the update.</p><h3 id="slashings">Slashings</h3><p>This week was unfortunate for several validators. There were 11 slashings on the next day after Shapella by validators of RockLogic GmbH in Lido pool, but this is not related to the update, just the operator suffered from a bug with keystore in the Prysm client. This case, certainly, was analyzed in detail, accompanied by a <a href="https://blog.lido.fi/loe-rocklogic-gmbh-slashing-incident/?ref=p2p.org">post-mortem</a> and has already been fixed.</p><p>The good side of this news is that since Lido has a money-back policy and treasury, none of the clients will definitely suffer losses.</p><!--kg-card-begin: markdown--><h2 id="conclusion-a-namet4a">Conclusion <a name="T4"></a></h2> <!--kg-card-end: markdown--><p>In conclusion, the Shapella upgrade has had a significant impact on the Ethereum network. The transition was not without its challenges, with a significant number of missed blocks in the network and a decrease in effectiveness. However, the network has shown resilience and has been able to recover to pre-upgrade levels in terms of performance. The increase in the waiting time for validators to enter the active validator set indicates a growing interest in Ethereum staking, which bodes well for the future of the network. While there were some issues with the upgrade, the Ethereum community has shown its ability to adapt and overcome challenges, which is a positive sign for the future development of the platform.</p>
from p2p validator
<p>We are excited to introduce our ground-breaking Ethereum (ETH) auto-staking feature, powered by our <a href="https://github.com/mixbytes/audits_public/tree/master/P2P.org?ref=p2p.org" rel="noopener noreferrer">audited immutable smart contract</a>. This feature completely automates the Ethereum staking process, making staking ETH easier than ever.</p><p>Our ETH staking offer is completely non-custodial and there are no KYC requirements. You simply connect your wallet and stake. </p><p>To set up a validator you will only need:</p><p>1) An Ethereum wallet</p><p>2) To specify the amount of stake - 1 validator per 32 ETH;</p><p>3) To specify the withdrawal address.</p><h2 id="ethereum-staking-guide">Ethereum Staking guide</h2><ol><li>Navigate to <a href="https://eth.p2p.org/?ref=p2p.org">https://eth.p2p.org/</a> and you will be brought up to the screen below.</li></ol><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/image.png" class="kg-image" alt loading="lazy" width="1440" height="811" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/image.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/image.png 1000w, https://p2p.org/economy/content/images/2023/04/image.png 1440w" sizes="(min-width: 720px) 720px"></figure><p>2. Then click "connect wallet" on the top right. We currently support Metamask and Ledger Wallet or you can use Wallet Connect. </p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/image-4.png" class="kg-image" alt loading="lazy" width="1440" height="802" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/image-4.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/image-4.png 1000w, https://p2p.org/economy/content/images/2023/04/image-4.png 1440w" sizes="(min-width: 720px) 720px"></figure><p>We have prepared a video guide on how to connect a Safe wallet:</p><figure class="kg-card kg-video-card"><div class="kg-video-container"><video src="https://p2p.org/economy/content/media/2023/04/howto-eth-p2p-stake.mp4" poster="https://img.spacergif.org/v1/1920x1080/0a/spacer.png" width="1920" height="1080" playsinline preload="metadata" style="background: transparent url('https://p2p.org/economy/content/images/2023/04/media-thumbnail-ember2702.jpg') 50% 50% / cover no-repeat;"></video><div class="kg-video-overlay"><button class="kg-video-large-play-icon"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><path d="M23.14 10.608 2.253.164A1.559 1.559 0 0 0 0 1.557v20.887a1.558 1.558 0 0 0 2.253 1.392L23.14 13.393a1.557 1.557 0 0 0 0-2.785Z"/></svg></button></div><div class="kg-video-player-container"><div class="kg-video-player"><button class="kg-video-play-icon"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><path d="M23.14 10.608 2.253.164A1.559 1.559 0 0 0 0 1.557v20.887a1.558 1.558 0 0 0 2.253 1.392L23.14 13.393a1.557 1.557 0 0 0 0-2.785Z"/></svg></button><button class="kg-video-pause-icon kg-video-hide"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><rect x="3" y="1" width="7" height="22" rx="1.5" ry="1.5"/><rect x="14" y="1" width="7" height="22" rx="1.5" ry="1.5"/></svg></button><span class="kg-video-current-time">0:00</span><div class="kg-video-time">/<span class="kg-video-duration"></span></div><input type="range" class="kg-video-seek-slider" max="100" value="0"><button class="kg-video-playback-rate">1×</button><button class="kg-video-unmute-icon"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><path d="M15.189 2.021a9.728 9.728 0 0 0-7.924 4.85.249.249 0 0 1-.221.133H5.25a3 3 0 0 0-3 3v2a3 3 0 0 0 3 3h1.794a.249.249 0 0 1 .221.133 9.73 9.73 0 0 0 7.924 4.85h.06a1 1 0 0 0 1-1V3.02a1 1 0 0 0-1.06-.998Z"/></svg></button><button class="kg-video-mute-icon kg-video-hide"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><path d="M16.177 4.3a.248.248 0 0 0 .073-.176v-1.1a1 1 0 0 0-1.061-1 9.728 9.728 0 0 0-7.924 4.85.249.249 0 0 1-.221.133H5.25a3 3 0 0 0-3 3v2a3 3 0 0 0 3 3h.114a.251.251 0 0 0 .177-.073ZM23.707 1.706A1 1 0 0 0 22.293.292l-22 22a1 1 0 0 0 0 1.414l.009.009a1 1 0 0 0 1.405-.009l6.63-6.631A.251.251 0 0 1 8.515 17a.245.245 0 0 1 .177.075 10.081 10.081 0 0 0 6.5 2.92 1 1 0 0 0 1.061-1V9.266a.247.247 0 0 1 .073-.176Z"/></svg></button><input type="range" class="kg-video-volume-slider" max="100" value="100"></div></div></div></figure><p>3. Once you successfully connect your wallet, we can begin the staking process. We can define how much ETH we want to stake and a withdrawal address.</p><p>Each Ethereum validator requires 32 ETH to set up so Ethereum can only be staked in multiples of 32 ETH. <br><br>We can also pick a different withdrawal address. The withdrawal address is used to receive rewards and withdraw the ETH staked.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/image-6.png" class="kg-image" alt loading="lazy" width="1440" height="759" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/image-6.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/image-6.png 1000w, https://p2p.org/economy/content/images/2023/04/image-6.png 1440w" sizes="(min-width: 720px) 720px"></figure><p>4. Once everything is set up, we can press continue and we will be taken to a confirmation screen. If everything is set up correctly we can press Stake. </p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/image-7.png" class="kg-image" alt loading="lazy" width="1440" height="868" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/image-7.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/image-7.png 1000w, https://p2p.org/economy/content/images/2023/04/image-7.png 1440w" sizes="(min-width: 720px) 720px"></figure><p>5. You will be prompted to confirm the transaction on your wallet.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/image-8.png" class="kg-image" alt loading="lazy" width="1440" height="966" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/image-8.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/image-8.png 1000w, https://p2p.org/economy/content/images/2023/04/image-8.png 1440w" sizes="(min-width: 720px) 720px"></figure><p>6. After you confirm the transaction in your wallet, wait a few minutes for it to be completed in the network.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/image-9.png" class="kg-image" alt loading="lazy" width="1440" height="966" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/image-9.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/image-9.png 1000w, https://p2p.org/economy/content/images/2023/04/image-9.png 1440w" sizes="(min-width: 720px) 720px"></figure><p>7. Once the transaction has been successfully confirmed we need to wait for the validators to become active. Under normal circumstances can take up to 24 hours but this is subject to change based on the number of people trying to stake.</p><p>While you wait you can join a personal telegram chat with our team. There we will share updates about your stake and can answer all of your questions.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/image-10.png" class="kg-image" alt loading="lazy" width="1440" height="1118" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/image-10.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/image-10.png 1000w, https://p2p.org/economy/content/images/2023/04/image-10.png 1440w" sizes="(min-width: 720px) 720px"></figure><p>8. Once the validators are active you will start earning rewards. You will also have access to a personal dashboard where you can check the status of your staked account. </p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/image-11.png" class="kg-image" alt loading="lazy" width="1440" height="1072" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/image-11.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/image-11.png 1000w, https://p2p.org/economy/content/images/2023/04/image-11.png 1440w" sizes="(min-width: 720px) 720px"></figure><hr><!--kg-card-begin: markdown--><h2 id="ethereum-eth-staking-faq">Ethereum (ETH) Staking FAQ</h2> <h3 id="do-i-need-to-pass-kyc-to-stake-eth">Do I need to pass KYC to stake ETH?</h3> <p>No, when working with P2P, there is no need to go through KYC because staked assets never touch our account and are sent directly to the Ethereum network.</p> <h3 id="what-is-the-minimum-amount-of-ethereum-required-to-stake">What is the minimum amount of Ethereum required to stake?</h3> <p>No Ethereum is necessary to run a node. However, it is necessary to stake 32 ETH x [amount of validators] to activate the validators and start getting rewards.</p> <h3 id="what-is-a-withdrawal-address-and-who-owns-it">What is a withdrawal address, and who owns it?</h3> <p>The withdrawal address is the Ethereum address used to unstake and receive rewards. This address is specified once and it can't be changed after the staking deposit is sent, because the network cements the association of a particular validator and withdrawal address. Access to the private key for this withdrawal address is required to unstake (seed phrase). It is also important to note that P2P is not a custodian and has no exposure to the client’s withdrawal private key. P2P will never ask, under any circumstance, at any time for access to the withdrawal key.</p> <h3 id="what-is-a-validator-key-and-who-owns-it">What is a validator key, and who owns it?</h3> <p>A validator key is a private key for maintaining the validator’s work (setting up validators, updating software etc.). P2P owns the validator keys and guarantees the highest standards for protecting these keys from being compromised, breached, or otherwise misused. This is accomplished through Threshold signatures, which are the gold standard for internal/external security threats. This solution is used by leading custodians, crypto banks, and Multi-Party Computation solutions.</p> <h3 id="why-use-smart-contracts-to-stake-eth">Why use smart contracts to stake ETH?</h3> <p>By design, ETH staking requires one staking transaction per 32 ETH. By using smart contracts we significantly simplify staking, reduce the cost of staking and minimize the risk of any human error. Thanks to our <a href="https://github.com/mixbytes/audits_public/tree/master/P2P.org?ref=p2p.org">audited</a> smart contracts it is possible to activate up to 100 validators with a single transaction.</p> <h3 id="can-i-stake-ethereum-with-a-hardware-wallet">Can I stake Ethereum with a hardware wallet?</h3> <p>Yes, it is possible to stake ETH with a Ledger (via native connection) or a Trezor wallet (via Metamask).</p> <h3 id="how-do-i-earn-rewards-from-staking-ethereum">How do I earn rewards from staking Ethereum?</h3> <p>Ethereum rewards are comprised of 2 parts associated with performing validation duties and block creation.</p> <ol> <li>Validation rewards are taken by performing the validator’s duties as an attestation for a block created by another validator, attestation for a block in sync committee and for creating a block. Validation rewards are accrued every 6.4 min and account for around 70% of the total rewards. Currently, these rewards aren’t withdrawable until the Shanghai upgrade. Following Shanghai, it will be possible to:</li> </ol> <ul> <li>Fully withdraw all the staked ETH + rewards and deactivate the validator;</li> <li>Partially withdraw all the Ethereum over 32 to the withdrawal address periodically.</li> </ul> <ol start="2"> <li>Block rewards (priority transaction fees + an additional fee from MEV) are accrued with block creation as a payment from transactions to the validator for including them in the block. It appears once every 62 days on average and accounts for around 30% of the total reward. MEV-boost isn’t a separate type of reward but is a technique used to build a block that will yield the maximum fee. Transaction fees accumulate on a p2p smart contract which is then automatically delivered to the client on a monthly basis after the P2P service fee has been deducted.</li> </ol> <h3 id="can-i-still-use-my-staked-ethereum-while-it-is-staked">Can I still use my staked Ethereum while it is staked?</h3> <p>No, the staked ETH is locked in the Ethereum smart contract and cannot be used.</p> <h3 id="how-does-p2p-take-its-service-fee">How does P2P take its service fee?</h3> <p>P2P takes its service fee from the execution layer rewards. By default, a special immutable smart contract is used to automatically split rewards between the user and P2P by the previously agreed rules. Other invoicing strategies can be employed by prior agreement.</p> <h3 id="how-does-slashing-work-in-ethereum">How does slashing work in Ethereum?</h3> <p>Slashing punishes validators for actions that are very difficult to do accidentally, and it’s very likely a sign of malicious intent. It’s a really rare event: there's only been 5 slashed validators within the whole network over the last month (or 0.001%). <a href="https://beaconcha.in/validators/slashings?ref=p2p.org">beaconcha.in/validators/slashings</a></p> <p>What is “slashable” behaviour? In a nutshell, it’s a violation of consensus rules in the network. As of right now, it needs to meet three conditions: proposal of two conflicting blocks at the same time, double vote attestation and surround attestation. This can happen due to either an intentional malicious action or misconfiguration of the validator (the most often being, running two of the same validators in the network).</p> <p>Slashing results in burning 1,0 ETH at once, and removing the validator from the network forever, which takes 36 days. During this time, the validator continues to work but can no longer participate in validation and block creation, getting a penalty of around 0.1 ETH in total.</p> <p>For the most part that's the sum of the penalty incurred, but there is also an additional midpoint (Day 18) penalty that scales with the number of slashed validators. This is called "correlation penalty” and it's currently only theoretical and has never been encountered on the Ethereum mainnet. This mechanism is there to protect the network from large attacks. The math for calculation penalty is pretty complicated, but the summary is if there are only 1, 100, or even 1000 slashed validators within 36 days the penalty will equal zero ETH. However, if the number of slashed validators increases to roughly 1.1% of all validators (currently 5.1k), this penalty becomes 1 ETH and an additional 1 ETH for every additional 1.1% validator slashed. So if 1/3 of the network is slashed, the penalty will nullify the whole stake (32 ETH). This mechanism is in place to prevent an attack on the network and it should never be triggered by accident.</p> <h3 id="how-can-slashing-be-prevented">How can slashing be prevented?</h3> <p>There are special mechanisms in place to prevent validators from meeting the slashing conditions called <a href="https://medium.com/prysmatic-labs/eth2-slashing-prevention-tips-f6faa5025f50?ref=p2p.org">slashing protection</a>. These mechanisms usually consist of a database with a signing history which the validator uses to check if the block can be signed (coupled with the default levels of monitoring and alerting protection). Additional protection levels will depend on the validator’s setup. P2P uses double-checking with a separate database at the key-manager stage and secures validators' key’s by Threshold, which means that no single person, even a P2P engineer, can run a second validator and a quorum is required for that. The final level of protection we have in place is an institutional grade slashing insurance.</p> <h3 id="how-can-staking-activity-be-tracked">How can staking activity be tracked?</h3> <p>Anyone who stakes with P2P gets access to a personal staking dashboard that can be used to track rewards and the validators' performance (APR, staking balance, % of blocks created with MEV, attestation rate, missed block, market comparisons, etc.)</p> <h3 id="in-what-geographic-location-is-p2ps-validator-infrastructure-running">In what geographic location is P2P's validator infrastructure running?</h3> <p>P2P direct staking infrastructure is located in Europe and distributed among 5 separate physical locations for protection from downtime.</p> <h3 id="how-does-p2p-protect-its-validators-from-widespread-outages">How does P2P protect its validators from widespread outages?</h3> <p>P2P validators have no single point of failure and are downtime resistant with back-ups of all critical infrastructure parts between 5 different physical locations, including:</p> <ol> <li> <p>Signing infrastructure - 3 location-independent key managers with 2-of-3 threshold quorum required for consensus;</p> </li> <li> <p>Validators Nodes - we have a reserve in a secure region ready to be activated within a maximum of 1 minute in case of an outage;</p> </li> <li> <p>Consensus layer nodes - our setup has top-3 consensus layer clients (Lighthouse, Prysm, Teku) simultaneously for diversity and preventing outrages related to soft bugs in one client. It also increases availability for validators.</p> </li> </ol> <!--kg-card-end: markdown-->
from p2p validator
<p>MultiversX is a recently redesigned blockchain that enables innovative applications in various fields, including the emerging metaverse. The platform has a bold vision, and its staking scheme is also quite unique. At P2P.ORG, we have decided to closely examine the rewards formula, analyze validators’ and delegators’ intentions, and try to predict the future of MultiversX's staking economy.</p><p><strong>MultiversX. A high-margin validator market. Less institutional, more community-oriented approach</strong><br></p><p>Unique facts about MultiversX staking:</p><ul><li>The Palm Tree Network takes a 70% higher commission from their clients than P2P.ORG and still their clients have a better APR P2P.ORG clients</li><li>White Label nodes services are not widely distributed</li><li>Institutional clients tend to distribute their stake across multiple validators, and do not heavily focus on one</li><li>Fees are higher compared to other blockchain networks. E.g: Let’s compare it with Near Protocol</li></ul><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2573.png" class="kg-image" alt loading="lazy" width="1680" height="944" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2573.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2573.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2573.png 1600w, https://p2p.org/economy/content/images/2023/04/2573.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>As we can gather from the official explorers, most of the heavily staked validators charge 15% fee or higher. This makes MultiversX attractive even for small validators looking to survive the severe bear market conditions.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2574.png" class="kg-image" alt loading="lazy" width="1680" height="944" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2574.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2574.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2574.png 1600w, https://p2p.org/economy/content/images/2023/04/2574.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>Many validators are also big community contributors and work hard on projects alongside the foundation. This is because nodes can currently only be allocated by the foundation or by the "queue". There are currently 79 nodes in the queue waiting to join the active set. During this period, they use stake but do not generate any profit. This queue can take several months due to high demand and a fixed number of nodes. This explains why white-label node services are not widely distributed.</p><p>In short, the interest in staking is consistently rising among MultiversX users. Due to the fixed number of nodes, there is high demand for each staking provider, and they can therefore charge higher fees. It is also worth noting that validating in MultiversX requires running multiple nodes instead of just one. Validators typically spend more on infrastructure and engineering teams.</p><p>The greater the stake a validator receives, the lower the APR it can offer. This is why institutional clients tend to distribute their stake across multiple validators, rather than heavily focusing on one.</p><p><strong>A detailed description of the MultiversX staking model. All the possible ways to maximize the number of rewards</strong></p><p>Stake in MultiversX is separated into 2 parts:</p><p>• Base stake</p><p>• Top-up stake</p><p>The base stake is allocated to nodes participating in network validation. The maximum number of nodes that can participate in validation is 3200, and each node must be staked with a minimum of 2,500 EGLDs. Validators can have as many nodes as they want, but there are a few points to keep in mind:</p><p>Imagine you have five nodes, all of which participate in the validation process and generate income for you. Your total stake is 12,500 EGLDs. Someone has given you an additional 5,000 EGLDs, which you can use to run two more nodes, increasing your stake to a total of 17,500 EGLDs across seven nodes. However, the maximum capacity of 3,200 nodes in the network is already occupied by nodes of other validators, which means that your two new nodes, with only 5,000 EGLDs each, must wait in a queue before they can begin validation. While they wait in the queue, they do not generate any rewards but still cost to maintain. Unfortunately, the queue moves slowly, and it's possible that you'll have to wait for months because there are other nodes ahead of yours and nodes in the validating pool don't leave very often. What's the solution? The solution is to top-up your stake.</p><p>The top-up stake is a type of stake that you can use if you don't have the possibility to run new nodes or wait in a long queue. In the example above, we have 5 nodes with 2,500 EGLDs each, totalling 12,500 EGLDs at stake. We have an extra 5,000 EGLDs of stake, but we can't run new nodes to stake it. In this case, these 5,000 EGLDs will automatically become a Top-up stake. Therefore, we have a total of:</p><ul><li>12,500 EGLDs of base stake, as we have 5 nodes allocated with 2,500 EGLDs each</li><li>5,000 EGLDs of Top-up stake</li><li>Total of 17,500 EGLDs<br></li></ul><p>So, what is the difference between Top-up and base stake? The difference lies in the number of rewards that the validator gains for each stake.</p><p>You can find all the formulas behind our calculations <a href="https://docs.multiversx.com/economics/staking-providers-apr?ref=p2p.org">here</a>:</p><p>Genesis Total Supply = 20M EGLDs<br>inflation Rate = 8.56% (year 3)<br>P = 2 000 000<br>Total Nodes = 3 200<br>Eligible Top Up Stake = 3 863 418,56 <br>Total Top Up Stake = 7 571 288,70<br>Protocol Sustainability Rewards = 10%<br>Num Days in A Year = 365<br>Top-up Factor = 0.5</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2575.png" class="kg-image" alt loading="lazy" width="1680" height="774" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2575.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2575.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2575.png 1600w, https://p2p.org/economy/content/images/2023/04/2575.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>As you can see, there is a reward of 2753 EGLDs for base stake and 1469 EGLDs for Top-up stake. The reward for base stake is twice as large as the reward for Top-up stake, and it will be distributed among validators. To calculate these rewards, use the following formulas:</p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/XCjZMlY_E8eHou6miZvWZhzMuW5ghPl9vd7GnZ1pSgnAyZa4bWxAOtBHgNghMm50deO39RhWVxZ5T4TwsMGkWQBYNFAR9kq7MBP5H5KXT8ziqwvOIwlhUEMqDMNGLSzRzyrgJoiz3-hAIPiutXoYhcg" class="kg-image" alt loading="lazy" width="602" height="48"></figure><figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/W5v_rqksWhmKMDevkORzCmELj6kD3Io8h72AQ1T_AGwiGBbq0o2RDFa7yw0HEfy2JHdgyuU6LuG_llcoAG5KqvA3FAQ0durjtw8lbZoruKzs1SH6zAqkvqbZD-FG4n7BuqfIp90Fh-jaKbj-QPAnyCs" class="kg-image" alt loading="lazy" width="602" height="48"></figure><p>We can calculate final rewards for an epoch. Let’s consider P2P.ORG and The Palm Tree Network:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2576.png" class="kg-image" alt loading="lazy" width="1680" height="331" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2576.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2576.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2576.png 1600w, https://p2p.org/economy/content/images/2023/04/2576.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>The main reason is that The Palm Tree Network's base stake accounts for 58% of their total stake, which is allocated on 76 nodes. On the other hand, P2P.ORG only has 39% of their base stake out of the total. The current APR for each type of stake is as follows:</p><p>Reward Base x 365/ Base Stake = 12.5% for base stake</p><p>Reward Top-up x 365/ Top-up Stake = 7% for Top-up stake</p><p>One key point is the idea that if you have a large amount of base stake, you can charge higher fees to your clients while still providing a good APR. To calculate a client's APR with the real validator fees of P2P at 10% and Palm Tree at 17%, use the following formula:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2577.png" class="kg-image" alt loading="lazy" width="1680" height="331" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2577.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2577.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2577.png 1600w, https://p2p.org/economy/content/images/2023/04/2577.png 1680w" sizes="(min-width: 720px) 720px"></figure><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2579.png" class="kg-image" alt loading="lazy" width="1680" height="974" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2579.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2579.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2579.png 1600w, https://p2p.org/economy/content/images/2023/04/2579.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>We have been delegated approximately 6,000 EGLDs twice. As a result, our overall stake has increased by almost 10%, while our top-up stake has increased by 20%. Although our TVL and share have both increased and our APR has dropped. The Palm Tree Network, on the other hand, has not experienced any major changes in their stake. They only received an additional 1,500 EGLDs, which is approximately 1% of their top-up stake.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2580.png" class="kg-image" alt loading="lazy" width="1680" height="974" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2580.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2580.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2580.png 1600w, https://p2p.org/economy/content/images/2023/04/2580.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>Should a validator increase their Total Value Locked (TVL) if they do not have enough nodes to allocate all stakes? Increasing your Top-up stake may result in a drop in client APR, making you less attractive to potential delegators. However, you must grow your TVL to be profitable or at least cover costs, which is not easy these days. Cryptocurrency prices are not as high as they were a year ago, while infrastructure costs have increased significantly.</p><p>After some research, we have found a solution that may seem strange at first, but will ultimately help us work efficiently, cover all costs, and provide a stable service for our delegators. The solution is to raise fees. While raising fees will increase our income, there is a good possibility that our delegators won't lose in the long run.</p><p>Initially, after the fee raise, our delegators may lose some of their rewards, and we should expect a churn of delegators and TVL. However, just as new delegations become a top-up stake due to a lack of nodes, in the case of an unstake, the top-up stake goes first. As a result, the share of the base stake increases, and the client's APR starts to grow along with the growth of rewards share for the base stake.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2581.png" class="kg-image" alt loading="lazy" width="1680" height="974" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2581.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2581.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2581.png 1600w, https://p2p.org/economy/content/images/2023/04/2581.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>The plot above illustrates how income and APR will change after a fee raise and the next stake churn. The blue vertical line represents our current APR, which is around 8.15%. The lowest blue horizontal curve shows our current state where we have the same fee at 10%, and how income and APR will change if we face churn of stake. Churn will lead us to a situation where our top-up stake and income drops at the same time. However, the client's APR will grow as the share of the base stake grows. The end of the line signals that all top-up stake was unstaked, and we are left only with the base stake. The result is a high client's APR; however, we face a loss of 1/3 of our current income.</p><p>All other lines show the same for different fees. The more fees we take, the more income we have. However, it also provides a very low client's APR, and we have to lose a significant amount of our TVL to return to the situation of our current APR.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2582.png" class="kg-image" alt loading="lazy" width="1680" height="904" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2582.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2582.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2582.png 1600w, https://p2p.org/economy/content/images/2023/04/2582.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>To give you a better understanding of how it works, we have provided a plot above. The blue line indicates the optimal point for the current APR (~8.15%), which depends on stake, top-up stake, and fee. The top point on the blue line represents the current state with a fee of 10%, stake at 116,000 EGLD, and top-up stake near 71,000 EGLD.</p><p>If we were to raise the fee to 34-35%, we would need to lose nearly half of our stake (55,000 EGLD) to return to the value of 8.15% for the client's APR. This would occur if our TVL dropped to 62,000 EGLD from 116,000 EGLD, and the share of base stake became nearly 70% (currently only 39%).</p><p>However, after some time, the APR will return to its previous values as the share of top-up stake drops.</p><h3 id="future-prospects"><br>Future prospects.<br></h3><p>In the MultiversX network, the amount of staked tokens is rapidly increasing. According to the MultiversX roadmap, liquid staking is coming, which will cause a slight decrease in the average APR across the entire network. It's good that the foundation is not trying to increase the APR, it could affect the stability of the exchange rate and prevent the coin from becoming deflationary.</p><p>The next big change in MultiversX is called "Phase 4", in which the queue will be replaced by the auction list. Validators who are shuffled out of the Eligible list will be moved to this auction list, and only the ones with the highest top-up will be further promoted to the waiting list and made eligible. The amount of base stake per node will remain at 2,500 EGLD. Thus, validators will have the intention to attract delegation, making the field more competitive. This might transform validators into builders, while maintaining high margins for validators.</p><p>As shown in the previous section, P2P.ORG could be more efficient and save the current APR by reducing the TVL and increasing the fee. <strong>On April 25th, P2P.ORG will change the fee to 17%</strong> and for a short period of time, the APR will decrease from 8.1% to 7.5%, but we expect growth to the previous values after some time due to the churn of top-up stake.</p><p>We want to thank all our delegators for their continuous support and for staking with us!</p><p><br></p>
from p2p validator
<h3 id="introducing-our-ethereum-staking-dapp-empowering-users-with-complete-privacy-unmatched-simplicity-ultimate-security-and-zero-fees">Introducing our Ethereum Staking dApp, empowering users with complete privacy, unmatched simplicity, ultimate security and zero fees</h3><p></p><p>We are thrilled to announce the launch of our Ethereum Staking dApp, which is designed to give you the ultimate control over your crypto assets while ensuring complete privacy, autonomy, and security. We have been working diligently behind the scenes to bring you a solution that simplifies the staking process without compromising your privacy.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/image-12.png" class="kg-image" alt loading="lazy" width="670" height="724" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/image-12.png 600w, https://p2p.org/economy/content/images/2023/04/image-12.png 670w"></figure><h1 id="staking-dapp-key-features"><strong>Staking dApp Key Features</strong></h1><ol><li><strong>Bunker Security Staking & 100% Slashing Protection</strong>: We understand the importance of security for our users, so we have built an infrastructure with no single point of failure. Our geographically distributed data centres with hot reserves in different countries ensure that your validators will keep working even in worst-case scenarios such as a data centre burning down. Moreover, we have implemented threshold cryptography (similar to multisig) to secure your validator keys. This advanced technology ensures that nobody, not even our P2P engineers, can access your validator keys, thereby adding additional protection against slashing incidents. Furthermore, our Staking dApp offers 100% slashing protection options for a truly worry-free staking experience.</li><li><strong>Stake with just a few clicks</strong>: Really, no human input is needed! Our Staking dApp automates the entire staking process, eliminating the need for human intervention. Our dApp is built on smart contracts, offering a transparent, trustless, and tamper-proof solution for staking your Ethereum assets. Additionally, our Staking dApp allows clients to stake directly from our website with just a few clicks, ensuring an effortless experience without the need for any technical know-how.</li><li><strong>No KYC</strong>: Our dApp ensures that you can stake your Ethereum assets without having to go through the cumbersome KYC (Know Your Customer) process. We respect your right to privacy and offer a seamless user experience without any unnecessary roadblocks.</li><li><strong>No Email Registration</strong>: With our Staking dApp, you no longer need to share your email address to stake your crypto. Just access the dApp through your preferred web3-enabled wallet, and you are ready to stake.</li><li><strong>No AML Risks</strong>: We have designed our Staking dApp to comply with all relevant regulations, mitigating any AML (Anti-Money Laundering) risks while ensuring that your Ethereum staking experience is secure and reliable.</li></ol><h2 id="how-does-it-work">How does it work?</h2><p>By automating the staking process, we have created a permissionless dApp that is both user-friendly and highly secure.</p><p>If you have ever tried to delegate your stake to a staking provider, you are already familiar with the multi-step flow of selecting the amount to stake, setting your withdrawal address, entering an email address, and then… receiving an email from a sales representative for an intro call.</p><p>While we understand the reasoning behind it (we have used a similar flow till now), the improvement opportunities in terms of user experience are massive.</p><p>That’s why, when you stake with our staking dashboard, you can expect to complete the request in just a few clicks:</p><ul><li>Enter the amount to stake and the withdrawable address</li><li>Check your staking details and stake the requested amount</li></ul><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/image-13.png" class="kg-image" alt loading="lazy" width="670" height="785" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/image-13.png 600w, https://p2p.org/economy/content/images/2023/04/image-13.png 670w"></figure><ul><li>Sign a transaction with your favourite wallet provider</li><li>Wait for the transaction to be broadcasted to the Ethereum network</li></ul><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/image-14.png" class="kg-image" alt loading="lazy" width="670" height="868" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/image-14.png 600w, https://p2p.org/economy/content/images/2023/04/image-14.png 670w"></figure><ul><li>The request is successfully sent!</li></ul><p>After receiving the request, your validators will be added to the Ethereum entry queue before becoming active (the amount of time depends on the network congestion).<br><br>For those of you that have a Safe wallet, we prepared a guide on how to use it with the dApp.</p><figure class="kg-card kg-video-card"><div class="kg-video-container"><video src="https://p2p.org/economy/content/media/2023/04/howto-eth-p2p-stake-1.mp4" poster="https://img.spacergif.org/v1/1920x1080/0a/spacer.png" width="1920" height="1080" playsinline preload="metadata" style="background: transparent url('https://p2p.org/economy/content/images/2023/04/media-thumbnail-ember272.jpg') 50% 50% / cover no-repeat;"></video><div class="kg-video-overlay"><button class="kg-video-large-play-icon"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><path d="M23.14 10.608 2.253.164A1.559 1.559 0 0 0 0 1.557v20.887a1.558 1.558 0 0 0 2.253 1.392L23.14 13.393a1.557 1.557 0 0 0 0-2.785Z"/></svg></button></div><div class="kg-video-player-container"><div class="kg-video-player"><button class="kg-video-play-icon"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><path d="M23.14 10.608 2.253.164A1.559 1.559 0 0 0 0 1.557v20.887a1.558 1.558 0 0 0 2.253 1.392L23.14 13.393a1.557 1.557 0 0 0 0-2.785Z"/></svg></button><button class="kg-video-pause-icon kg-video-hide"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><rect x="3" y="1" width="7" height="22" rx="1.5" ry="1.5"/><rect x="14" y="1" width="7" height="22" rx="1.5" ry="1.5"/></svg></button><span class="kg-video-current-time">0:00</span><div class="kg-video-time">/<span class="kg-video-duration"></span></div><input type="range" class="kg-video-seek-slider" max="100" value="0"><button class="kg-video-playback-rate">1×</button><button class="kg-video-unmute-icon"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><path d="M15.189 2.021a9.728 9.728 0 0 0-7.924 4.85.249.249 0 0 1-.221.133H5.25a3 3 0 0 0-3 3v2a3 3 0 0 0 3 3h1.794a.249.249 0 0 1 .221.133 9.73 9.73 0 0 0 7.924 4.85h.06a1 1 0 0 0 1-1V3.02a1 1 0 0 0-1.06-.998Z"/></svg></button><button class="kg-video-mute-icon kg-video-hide"><svg xmlns="http://www.w3.org/2000/svg" viewbox="0 0 24 24"><path d="M16.177 4.3a.248.248 0 0 0 .073-.176v-1.1a1 1 0 0 0-1.061-1 9.728 9.728 0 0 0-7.924 4.85.249.249 0 0 1-.221.133H5.25a3 3 0 0 0-3 3v2a3 3 0 0 0 3 3h.114a.251.251 0 0 0 .177-.073ZM23.707 1.706A1 1 0 0 0 22.293.292l-22 22a1 1 0 0 0 0 1.414l.009.009a1 1 0 0 0 1.405-.009l6.63-6.631A.251.251 0 0 1 8.515 17a.245.245 0 0 1 .177.075 10.081 10.081 0 0 0 6.5 2.92 1 1 0 0 0 1.061-1V9.266a.247.247 0 0 1 .073-.176Z"/></svg></button><input type="range" class="kg-video-volume-slider" max="100" value="100"></div></div></div></figure><h2 id="free-test-drive-offer">Free Test-drive offer</h2><p>To celebrate the launch of our Staking dApp and the upcoming Shanghai upgrade, we are offering a limited-time promotional period with 0% validator fees until August 1, 2023. This means you can enjoy maximum returns on your staked Ethereum with absolutely no fees.</p><p>And there's more! We have not forgotten our loyal existing clients. If you are a current client and decide to add additional stakes to your account, you will also benefit from the 0% fee promotion. This is our way of thanking you for your continued support and trust in our platform.</p><p>In conclusion, our Ethereum Staking dApp is here to revolutionize the staking experience for Ethereum users. Our commitment to privacy, autonomy, security, and innovation is at the core of our product. We invite you to try out our Staking dApp and join us in this exciting journey towards a decentralized and empowered future.</p><p>If you have any questions or need assistance, please reach out to our BD team! Happy staking, and welcome to the future of Ethereum staking!</p><div class="kg-card kg-button-card kg-align-center"><a href="https://ethereum-staking.p2p.org/?ref=p2p.org" class="kg-btn kg-btn-accent">Stake now</a></div>
from p2p validator
<h1 id="introduction"><strong>Introduction</strong></h1><p>In this post, we will take a deep dive into the Ethereum network during the month of March 2023. Our goal is to provide a comprehensive analysis of the network and its various components. Here are the topics we explore:</p><ul><li><a href="https://p2p.org/economy/ethereum-staking/#:~:text=Ethereum%20staking%20ecosystem.-,Network%20Overview,-As%20of%20March">Network Overview</a></li><li><a href="https://p2p.org/economy/ethereum-staking/#:~:text=Staking%20review%20by%20segment">Review by staking segments</a></li><li><a href="https://p2p.org/economy/ethereum-staking/#:~:text=validators%20is%20public.-,Lido%20operators,-When%20staking%20involves">Lido operators performance</a></li><li><a href="https://p2p.org/economy/ethereum-staking/#:~:text=block%2016867030.-,P2P.org%20overview,-The%20top%203">P2P.org overview</a></li><li><a href="https://p2p.org/economy/ethereum-staking/#:~:text=Tweets%20and%20articles%20of%20the%20month">Best tweets and articles</a></li></ul><p>All the data was sourced from our own validators, <a href="http://beaconcha.in/?ref=p2p.org">beaconcha.in</a> and <a href="https://www.rated.network/?ref=p2p.org">rated.network</a>. We considered only staking providers whose information is publicly available, meaning this list isn’t a complete picture of the Ethereum staking ecosystem.</p><h1 id="network-overview">Network Overview</h1><p>As of March 2023, the total amount of Ethereum staked has reached <strong>17,963,528 ETH</strong>, which is <strong>5.26%</strong> higher than the previous month's total stake. This is a significant increase, demonstrating the growing interest in Ethereum staking. The amount staked now represents approximately <strong>15.04%</strong> of the total circulating supply of Ethereum, which is a strong indication of the confidence that investors have in the platform. It is worth noting that this is a considerable increase from just a few months ago, demonstrating the rapid growth of the Ethereum ecosystem.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/01-Network-Overview-1.png" class="kg-image" alt loading="lazy" width="1996" height="1199" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/01-Network-Overview-1.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/01-Network-Overview-1.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/01-Network-Overview-1.png 1600w, https://p2p.org/economy/content/images/2023/04/01-Network-Overview-1.png 1996w" sizes="(min-width: 720px) 720px"></figure><p>Despite the increase in the total amount of Ethereum staked, the current network-wide average annual percentage rate (APR) for Ethereum staking is around 4.1**%**, which is a 0.0738 percentage point increase from the previous month. The consensus rewards have increased by 0.2518 points, but the execution rewards have decreased by 0.178 points due to the increase in the number of validators in the network. The table below shows the top 5 block MEV rewards.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/02-Network-Overview-2.png" class="kg-image" alt loading="lazy" width="1978" height="669" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/02-Network-Overview-2.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/02-Network-Overview-2.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/02-Network-Overview-2.png 1600w, https://p2p.org/economy/content/images/2023/04/02-Network-Overview-2.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>For investors interested in Ethereum staking, it is important to be aware and understand the risks involved. Additionally, during March, 4 <strong>validators</strong> from the network were slashed, one of which belongs to Rocket Pool</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/03-Network-Overview-3.png" class="kg-image" alt loading="lazy" width="1978" height="584" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/03-Network-Overview-3.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/03-Network-Overview-3.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/03-Network-Overview-3.png 1600w, https://p2p.org/economy/content/images/2023/04/03-Network-Overview-3.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>This highlights the risks involved in Ethereum staking and the importance of carefully selecting validators to stake with.</p><h1 id="staking-review-by-segment">Staking review by segment</h1><p>The upcoming Shanghai update for Ethereum, scheduled for April 12, has holders of liquid staking tokens eagerly anticipating how the event will impact their holdings. Prior to the update, any ETH deposits into these protocols could not be withdrawn from Ethereum's deposit-only Proof-of-Stake (PoS) system. After the Shanghai event, users will be able to unstake their ETH, sell their stakes, or migrate to a different staking service.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/04-Staking-review-by-segment-1.png" class="kg-image" alt loading="lazy" width="1978" height="912" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/04-Staking-review-by-segment-1.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/04-Staking-review-by-segment-1.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/04-Staking-review-by-segment-1.png 1600w, https://p2p.org/economy/content/images/2023/04/04-Staking-review-by-segment-1.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>For the current period, liquid staking increased to a total of 33.33%. This value is 2.38 points higher than at the beginning of the year. Conversely, CEX stacking has decreased to 27.27%, which is 2.31 points lower than at the beginning of the year. Staking pools and unidentified validators have remained almost unchanged, at 16.97% and 22.43% respectively. As we can see, at the end of February there was a big amount of ETH deposited, one of them is the largest single daily inflow ever on the Lido platform in the amount of 150,000 ETH.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/05-Staking-review-by-segment-2.png" class="kg-image" alt loading="lazy" width="1978" height="1048" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/05-Staking-review-by-segment-2.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/05-Staking-review-by-segment-2.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/05-Staking-review-by-segment-2.png 1600w, https://p2p.org/economy/content/images/2023/04/05-Staking-review-by-segment-2.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>Lido is the largest liquid staking platform, which currently has over 31% of all staked ETH. Lido's popularity can be attributed to its ease of use and its ability to provide users with a flexible and secure way to stake their ETH. It is challenging to de-anonymize all validators, including their owners and whether they belong to centralized exchanges, staking pools or e.t.c. However, with Lido, all the information about the validators is public.</p><h2 id="lido-operators">Lido operators</h2><p>When it comes to ETH staking we should not only consider the APR as an important metric but also take into account validator effectiveness, which can be an even more accurate metric. Validator effectiveness indicates how much of your validator balance is being used for attestations, and is calculated as the effective balance as a fraction of the total balance. <a href="https://p2p.org/?ref=p2p.org">P2P.org</a> published an article explaining why validator effectiveness is a better metric than APR, and providing tips on how to choose the best staking operator.</p><p>In this regard, two of the highest-performing validators in the market are Allnodes and Attestant. These validators have an effectiveness rating of 97.25%, which means they are highly efficient in terms of attestation.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/06-Lido-operators.png" class="kg-image" alt loading="lazy" width="1978" height="1044" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/06-Lido-operators.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/06-Lido-operators.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/06-Lido-operators.png 1600w, https://p2p.org/economy/content/images/2023/04/06-Lido-operators.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>The top 3 by validator effectiveness is <strong><a href="https://p2p.org/?ref=p2p.org">P2P.org</a></strong> with the highest APR in the top 5 effectiveness rating over the last 30 days. We will explore this in more detail in the next section.</p><p>We would also like to note that Staking Facilities and Everstake had the highest APR in March. Staking Facilities has an APR of 9.96%, with an execution APR of 6.07%. This value is approximately 50% higher than their average APR, due to a very large MEV block reward of around 692 ETH for block <a href="https://beaconcha.in/block/16867030?ref=p2p.org">16867030</a>.</p><h1 id="p2porg-overview">P2P.org overview</h1><p>The top 3 by validator effectiveness is <strong><a href="https://p2p.org/?ref=p2p.org">P2P.org</a></strong> with the highest APR in the top 5 effectiveness rating over the last 30 days.</p><h2 id="rewards">Rewards</h2><p>For March, all active validators on the network generated a mean rewards rate of 0.1345 ETH. The average reward of P2P’s validators was 0.1386 ETH, around 3% higher than the mean performance of all the active validators on the network</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/07-AVG-validator-rewards.png" class="kg-image" alt loading="lazy" width="1978" height="649" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/07-AVG-validator-rewards.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/07-AVG-validator-rewards.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/07-AVG-validator-rewards.png 1600w, https://p2p.org/economy/content/images/2023/04/07-AVG-validator-rewards.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>This is mostly due to P2P's enterprise-grade infrastructure, which maximizes node uptime and rewards, while also utilizing MEV-Boost to extract additional value during block production.</p><h2 id="consensus-performance">Consensus performance</h2><p>The primary metric commonly used when choosing a staking provider is APR. However, due to Ethereum’s complex rewards structure, it’s better to compare staking providers by their validator’s effectiveness rather than APR. We conducted extensive research on the topic, and you can read about it <a href="https://www.stakingrewards.com/journal/choosing-the-best-using-metrics-and-data-to-choose-the-right-ethereum-validator/?ref=p2p.org">here.</a></p><h3 id="earned">Earned</h3><p>Validators may receive fewer consensus rewards due to missed attestations and errors that result in penalties. Here, we compare the average share of rewards of the network and <a href="https://p2p.org/?ref=p2p.org">P2P.org</a>.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/08Earned.png" class="kg-image" alt loading="lazy" width="1978" height="1225" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/08Earned.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/08Earned.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/08Earned.png 1600w, https://p2p.org/economy/content/images/2023/04/08Earned.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>The network average share of consensus layer rewards was 98.29%, while that of <a href="https://p2p.org/?ref=p2p.org">P2P.org</a> is 99.18%, which is 0.89 percentage points above the network average</p><h3 id="attestation-rate-correctness">Attestation rate & correctness</h3><p>The attestation rate measures how often a validator successfully attests new proposed blocks to the rest of the network. If a validator is down or cannot attest blocks for other reasons, its attestation rate and, therefore, rewards will decrease. Attestation correctness is another essential metric to consider, as it measures the accuracy of a validator's attestation. Validators must attest to the correct block or face penalties, including potential slashing. Accurate attestations are crucial for maintaining the integrity and security of the Ethereum network, making attestation correctness an essential metric to consider.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/09-Attestation-rate.png" class="kg-image" alt loading="lazy" width="1978" height="1074" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/09-Attestation-rate.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/09-Attestation-rate.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/09-Attestation-rate.png 1600w, https://p2p.org/economy/content/images/2023/04/09-Attestation-rate.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>In March, the network's average attestation rate was approximately 99.6%, while P2P's attestation rate was 99.98%, which is 0.38% higher than the network average. The network's average attestation correctness was approximately 98.91%. Meanwhile, P2P's attestation rate was 99.36%, which is 0.45% higher than the network average.</p><h2 id="execution-performance">Execution performance</h2><p>The execution layer is the layer on the Ethereum blockchain that provides the environment for applications and smart contracts to operate and process transactions within and between applications. In general, there are two types of execution layer rewards: transaction priority tips and MEV tips.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/10-Execution-performance.png" class="kg-image" alt loading="lazy" width="1978" height="457" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/10-Execution-performance.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/10-Execution-performance.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/10-Execution-performance.png 1600w, https://p2p.org/economy/content/images/2023/04/10-Execution-performance.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>There is a high risk of missing a block when the MEV relay proposes it for an extended period of time. Therefore, we create the block ourselves, which is why we haven't achieved 100% success rate. In March 2023, <a href="https://p2p.org/?ref=p2p.org">P2P.org</a> had 96.4% of the MEV blocks, with 3052 proposed blocks and a proposal rate of 99.97%. Here are the top 5 blocks with the highest MEV rewards:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/11-to-5-mev.png" class="kg-image" alt loading="lazy" width="1978" height="657" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/11-to-5-mev.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/11-to-5-mev.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/11-to-5-mev.png 1600w, https://p2p.org/economy/content/images/2023/04/11-to-5-mev.png 1978w" sizes="(min-width: 720px) 720px"></figure><h3 id="slashing">Slashing</h3><p>A slashing event occurs when a validator misbehaves on the network. This is the most severe penalty a validator can suffer, and it results in the loss of a portion of their staked tokens.</p><p>During March, P2P had no slashing occurrences. We are proud to maintain a flawless record of zero slashing events throughout our time running Ethereum validators.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/12-Execution-performance--1-.png" class="kg-image" alt loading="lazy" width="1978" height="509" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/12-Execution-performance--1-.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/12-Execution-performance--1-.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/12-Execution-performance--1-.png 1600w, https://p2p.org/economy/content/images/2023/04/12-Execution-performance--1-.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>P2P operates validator infrastructure securely, to minimize the risk of being slashed, and provides coverage to mitigate any losses in the event of a slashing incident.</p><h1 id="tweets-and-articles-of-the-month">Tweets and articles of the month</h1><p><br>Check out P2P.org best tweets and articles for March 2023</p><ol><li> <strong>A deep dive into withdrawals</strong>. What will the post-Shapella market look like? We researched the market landscape and withdrawal documentation comprehensively to highlight the pitfalls and insights about the upcoming changes. <a href="https://twitter.com/P2Pvalidator/status/1643974124145102849?ref=p2p.org">Read the Twitter thread and check the full post here</a></li><li><strong>Choosing the best validator</strong>. Dive into our ultimate guide on choosing the best Ethereum validator for the Shanghai update Metrics, slashing insurance, SLA & more. <a href="https://www.stakingrewards.com/journal/choosing-the-best-using-metrics-and-data-to-choose-the-right-ethereum-validator/?ref=p2p.org">Read article</a></li><li><strong>Calculate possible APR</strong>. Ethereum APR is highly influenced by random factors like the number of blocks created or MEV. But how do you know if your APR is good or not? We've developed an advanced APR simulator, that calculates the average expected APR and possible deviations. <a href="https://p2p.org/networks/ethereum/apr-simulator?ref=p2p.org">Try it out</a></li></ol>
from p2p validator
<h3 id="what%E2%80%99s-this-article-about">What’s this article about?</h3><p>The Shapella upgrade brings significant changes to the Ethereum network, introducing new withdrawal options for validators in the form of full withdrawals and partial withdrawals. This article delves into the details of withdrawal eligibility, the step-by-step process for withdrawals, and what to expect in the immediate, mid-term, and long-term future. We also explore the potential impact on the activation queue, withdrawal queue, and APR dynamics, as well as the various factors that may influence these aspects of the Ethereum ecosystem.</p><h3 id="table-of-contents">Table of contents</h3><ul><li><a href="https://p2p.org/economy/the-shapella-upgrade-a-deep-dive-into-withdrawals/#T2:~:text=Influence%20Your%20Return-,Uncovering%20Withdrawals%3A%20Key%20Information%20You%20Should%20Know,-The%20Shapella%20upgrade">Uncovering Withdrawals: Key Information You Should Know</a></li><li><a href="https://p2p.org/economy/the-shapella-upgrade-a-deep-dive-into-withdrawals/#T2:~:text=the%20exit%20queue.-,The%20Withdrawal%20Process%20Step%2Dby%2DStep,-Active%20validators%20can">The Withdrawal Process Step-by-Step</a></li><li><a href="https://p2p.org/economy/the-shapella-upgrade-a-deep-dive-into-withdrawals/#T2:~:text=More%20about%20the%20withdrawal%20eligibility">Is Your Validator Ready for Withdrawals? </a></li><li><a href="https://p2p.org/economy/the-shapella-upgrade-a-deep-dive-into-withdrawals/#T2:~:text=eligible%20for%20withdrawals.-,Navigating%20the%20Post%2DShapella%20Market,-Immediately%20(first%20days">Navigating the Post-Shapella Market: A Comprehensive Overview</a></li><li><a href="https://p2p.org/economy/the-shapella-upgrade-a-deep-dive-into-withdrawals/#T2:~:text=after%20the%20Shapella.-,Anticipating%20the%20Withdrawal%20Queue%3A%20What%20to%20Expect,-Various%20factors%20affect">Anticipating the Withdrawal Queue: What to Expect</a></li><li><a href="https://p2p.org/economy/the-shapella-upgrade-a-deep-dive-into-withdrawals/#T2:~:text=end%20of%20July.-,Forecasting%20the%20Activation%20Queue%3A%20Preparing%20for%20the%20Future,-The%20current%20percentage">Forecasting the Activation Queue: Preparing for the Future</a></li><li><a href="https://p2p.org/economy/the-shapella-upgrade-a-deep-dive-into-withdrawals/#T2:~:text=beginning%20of%20July.-,Post%2DShapella%20APR%3A%20Factors%20That%20Will%20Influence%20Your%20Return,-Since%20the%20activation">Post-Shapella APR: Factors That Will Influence Your Return</a></li></ul><h3 id="uncovering-withdrawals-key-information-you-should-know">Uncovering Withdrawals: Key Information You Should Know</h3><p>The Shapella upgrade introduces two types of withdrawals: full withdrawals (also known as exits) and partial withdrawals (staking reward collection).</p><p>Core withdrawal concepts</p><ol><li>Withdrawal eligibility. Not every validator can withdraw immediately after the Shapella upgrade, as only validators with 0x01 format withdrawal addresses are eligible. Validators with old 0x00 format addresses (58% of the total) need to switch to the new format, a process that will take approximately three days. So if you have 0x01 format, you have an advantage over other validators to exit with a minimal queue.</li><li>Full withdrawals involve validators withdrawing their entire stake after passing through an exit queue (dependent on the number of validators wishing to exit) and a withdrawal period (1-5 days). This process prevents sudden changes in validator numbers, ensuring network security.</li><li>Partial withdrawals automatically withdraw accumulated staking rewards (balances over 32 ETH) if validators possess the required withdrawal credentials. Right after the Shapella update, this process will take around 2 days since some validators are not eligible for withdrawals. But this is temporary, and in the near future partial withdrawals should be expected every 5 days.</li><li>You will continue to earn staking rewards while you wait in the exit queue.</li></ol><h3 id="the-withdrawal-process-step-by-step">The Withdrawal Process Step-by-Step</h3><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/01.png" class="kg-image" alt loading="lazy" width="1578" height="988" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/01.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/01.png 1000w, https://p2p.org/economy/content/images/2023/04/01.png 1578w" sizes="(min-width: 720px) 720px"></figure><ol><li>Active validators can earn rewards and perform partial withdrawals.</li><li>To perform a full withdrawal, validators initiate a voluntary exit and enter the exit queue. The exit queue works on a first-in, first-out (FIFO) basis and limits the number of validators that can withdraw every epoch to a dynamic churn limit. The minimum churn limit is set to four. Currently, for 560k validators, it’s 8 validators per epoch (or 1800 validators / 57.6k ETH daily)</li><li>Validators enter a waiting period to ensure no malicious activity. This is approximately 27 hours if not slashed, and 36 days if slashed. After the waiting period, the stake becomes withdrawable.</li><li>All withdrawals, both full and partial, are processed sequentially at a rate of 16 validator addresses per block, amounting to 115k validators daily. Each validator has a designated position in this withdrawal queue. The queue operates in a loop, starting from the beginning after each cycle. It takes 5 days to complete one rotation. Consequently, the maximum waiting time for this withdrawal step is 5 days, while the minimum waiting time can be just a few minutes if the validator completes step 3 (waiting 27 hours) right before their turn for withdrawal.</li></ol><div class="kg-card kg-callout-card kg-callout-card-green"><div class="kg-callout-text">P2P.org is fully prepared for the Shapella update, and once it occurs, the platform will enable you to initiate a full withdrawal with just two clicks.</div></div><h3 id="more-about-the-withdrawal-eligibility">More about the withdrawal eligibility</h3><p>Validators must use withdrawal credentials with the 0x01 format, introduced in March 2021, to be eligible for withdrawals. Validators with the older 0x00 format will be able to switch to the 0x01 format after the Shanghai upgrade, limited to 16 switches per block. It may take two days for every validator to switch their credentials and another two to three days for most staking rewards to be withdrawn.</p><div class="kg-card kg-callout-card kg-callout-card-green"><div class="kg-callout-text"><a href="https://p2p.org/?ref=p2p.org">P2P.org</a> has 0x01 format by default, so if you stake with us, you are already eligible for withdrawals.</div></div><h3 id="navigating-the-post-shapella-market">Navigating the Post-Shapella Market</h3><ul><li><strong>Immediately (first days)</strong> after the Shapella upgrade, we expect only a limited number of validators to exit, as 58% of the total will lack the necessary withdrawal credentials. Substantial partial withdrawals should occur in the following days. We assume that half of the partial withdrawals (550k ETH) will be restaked in order to get more rewards, remaining 550k ETH will likely be sold to pay taxes, which may temporarily cause price pressure.</li><li><strong>Mid-term (around 3 months)</strong>, there will be large stake movements with the maximum possible full withdrawal limit reached and new validators (with long queues). The main factors will be a regulatory crackdown on CEX staking, switching staking providers, complete withdrawals, and staking of accumulated rewards. While waiting in the long activation queue (up to 20 days), validators don't receive any rewards. This is likely to lead to higher demand for liquid staking. It generates yield immediately after staking, distributing rewards among all staking derivatives holders. However, the downside of this feature is a reduced average APR for all liquid stakers (even for those who staked before the Shapella update). As a result, direct staking will generate a higher yield in the upcoming months.</li><li><strong>Long-term (several years)</strong>, we expect that the reduced risk associated with the enabling of withdrawals will bring more adoption but a corresponding drop in APR, which will conversely slow the adoption rate. The two factors balance each other out. Nevertheless, we estimate that 30% of ETH will be staked by the end of 2024 and 50% within 5 years (more on this below)</li></ul><div class="kg-card kg-callout-card kg-callout-card-green"><div class="kg-callout-text">There will be significant increased activation and withdrawal queues first 3 month after the Shapella.</div></div><h3 id="anticipating-the-withdrawal-queue-what-to-expect">Anticipating the Withdrawal Queue: What to Expect</h3><p>Various factors affect the demand for staking withdrawals. We have selected the most important ones, in our opinion, and tried to evaluate their effect on the market:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/02.png" class="kg-image" alt loading="lazy" width="1578" height="1030" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/02.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/02.png 1000w, https://p2p.org/economy/content/images/2023/04/02.png 1578w" sizes="(min-width: 720px) 720px"></figure><p>Below we have analyzed our assumptions in detail:</p><ol><li><strong>Regulatory crackdown on CEX staking</strong>: Kraken's recent fine by the SEC has led to the exchange winding down its US staking operations. We already know that Kraken will withdraw US investors' staked ETH shortly after Shapella, which represents approximately 400k ETH (2% of total staked ETH). Other CEXs may be more likely to withdraw a significant part of their staked ETH as well. However, this stake will likely be quickly restaked.</li><li><strong>Withdrawals to switch staking providers</strong>. There are numerous reasons to change staking providers, and we assume that at least 20% of validators will do it shortly (first three month)<br><br>2.1. Disliking validator performance: For example, around 8% of validators have effectiveness <a href="https://www.rated.network/?network=mainnet&view=pool&timeWindow=30d&page=1&ref=p2p.org">significantly lower</a> than the network average. <a href="https://www.rated.network/relays?network=mainnet&timeWindow=30d&ref=p2p.org">Some providers</a> don't have MEV-boost at all (10%) or use a limited number of MEV relays (10%). Additionally, <a href="https://www.rated.network/?network=mainnet&view=pool&timeWindow=30d&page=1&ref=p2p.org">8% don’t have</a> client diversity. All of the above is not necessarily a bad thing. The validator may have a super secure setup that reduces performance or a principled position to censor/not censor transactions. Our point is that more than half of the validators have been staking for over a year (before the merge and the appearance of MEV, at least). Therefore, disagreement with the provider's approaches is quite possible. <br><br>2.2. CEXs risks: The recent <a href="https://www.investopedia.com/what-went-wrong-with-ftx-6828447?ref=p2p.org">FTX</a> collapse and <a href="https://blog.kraken.com/post/17619/settlement/?ref=p2p.org">Kraken</a> unstake of all U.S. client assets cases have reminded us of custody risks. Currently, 27.3% of ETH is <a href="https://dune.com/hildobby/eth2-staking?ref=p2p.org">staked by CEXs</a>, and some part of that will be restaked.<br><br>2.3. Solo stakers may exit and stake their ETH with Liquid-staking derivatives (LSDs), as it is a better deal for them. It's hard to estimate the number of solo stakers, but according to our research of ETH deposits, approximately 350k ETH came from separate different addresses in the last three months alone (32 ETH per address). So, solo stakers likely account for 5-10% of validators in total, at least.<br><br>2.4. Switching LSDs to direct staking in favour of diversification: Currently, Liquid staking accounts for 33% of the total stake and seems to be increasing its market share. Despite good diversification in the validator pool, Liquid staking carries additional smart contract risk. Since it will be possible to unstake ETH, a good strategy would be to diversify and restake some amount of ETH in non-custodial direct staking services.</li><li><strong>One-time withdrawal of ETH</strong>, reflecting the need that has accumulated over two years: Staked ETH has been locked for more than 2 years, a considerable period in the blockchain world, during which many circumstances could have changed. Bankruptcy, alterations in portfolio strategy, and other situations may necessitate the sale of ETH. Based on Polkadot and Solana's largest unstakes (10-15% of the total stake within a month), we believe it's fair to assume that at least 10% of the stake will be withdrawn as soon as such an opportunity becomes available.</li><li><strong>Regular organic withdrawals.</strong> According to the Polkadot benchmark, there is evidence of organic stake/unstake movements. Polkadot's historical median value of unstaking is 0.04% daily, which amounts to 15% yearly. We cannot directly apply this benchmark to Ethereum, as it differs in terms of its popular liquid staking option (those who do not want to hold a stake for an extended period can use liquid staking). However, we believe it's reasonable to assume an organic unstaking rate of around 10% per year for Ethereum.</li></ol><p>Considering the assumptions above and the fact that the maximum unstake bandwidth is 57.6k ETH daily, we’ve calculated the potential exit queue for the upcoming month.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/03.png" class="kg-image" alt loading="lazy" width="1578" height="1049" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/03.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/03.png 1000w, https://p2p.org/economy/content/images/2023/04/03.png 1578w" sizes="(min-width: 720px) 720px"></figure><div class="kg-card kg-callout-card kg-callout-card-green"><div class="kg-callout-text">By the beginning of May, total exit time probably will increase to 30 days and will remain at this level until the end of July.</div></div><h3 id="forecasting-the-activation-queue-preparing-for-the-future">Forecasting the Activation Queue: Preparing for the Future</h3><p>The current percentage of staked ETH is low (15%) compared to other chains like Solana (68%) and Polygon (43%). The Shanghai upgrade should unlock pent-up demand from investors who have been reluctant to lock their ETH. A larger proportion of staked ETH will provide greater network security over time.</p><p>Yields from staking are higher than those from the largest and safest DeFi protocols. After the Shanghai upgrade, the risk of locking funds through staking will decrease, making it more attractive to investors.</p><p>In addition, partial withdrawals allow validators to withdraw rewards regularly and restake them, utilizing compounding. Validators can restake these rewards promptly to maximize their returns.</p><p>Until now, staked ETH has increased fairly linearly over time: +6 pp. to the staking ratio yearly (or around 220k new validators per year). But we believe that the <strong>Shapella update is a game-changer, and we will see accelerated organic growth</strong> (up to 440k new validators or 14M ETH per year).</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/04.png" class="kg-image" alt loading="lazy" width="1578" height="1030" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/04.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/04.png 1000w, https://p2p.org/economy/content/images/2023/04/04.png 1578w" sizes="(min-width: 720px) 720px"></figure><p>Other factors affect the activation queue</p><ol><li><strong>Staking of accumulated rewards</strong>: after partial withdrawals, validators may choose to restake their rewards in new 32 ETH units to generate additional yield. Now there are approximately 1.1M ETH rewards locked, and these will be withdrawn within the first week following Shapella. Most likely half of them will go to taxes, half will be staked.</li><li><strong>ETH restaked from Kraken unstake</strong>. 400k ETH within 3 months.</li><li><strong>ETH restake from switching staking providers</strong>. 3.5M within 3 months.</li></ol><p>Applying these assumptions to activation queue bandwidth (57.6k ETH daily), we are getting the following activation queue projections:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/05.png" class="kg-image" alt loading="lazy" width="1578" height="1049" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/05.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/05.png 1000w, https://p2p.org/economy/content/images/2023/04/05.png 1578w" sizes="(min-width: 720px) 720px"></figure><div class="kg-card kg-callout-card kg-callout-card-green"><div class="kg-callout-text">Total activation time is projected to increase steadily up to 10 days at the beginning of May and 25 days at the beginning of July.</div></div><h3 id="post-shapella-apr-factors-that-will-influence-your-return">Post-Shapella APR: Factors That Will Influence Your Return</h3><p>Since the activation and exit queues have similar bandwidth, and based on the assumptions mentioned above, during the first 3 months after Shapella, we can expect to see a stable number of active validators (57.6k ETH activations / 57.6k ETH exits daily). This leads to a consistent APR, as the number of active validators is one of the main factors influencing rewards. The more validators there are, the fewer rewards each of them receives.</p><p>Below is the APR baseline forecast that takes into account a limited number of factors. It may not be entirely accurate, as many other factors can significantly impact rewards. Nevertheless, it is interesting to consider the trends as a baseline scenario.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/06.png" class="kg-image" alt loading="lazy" width="1578" height="1049" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/06.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/06.png 1000w, https://p2p.org/economy/content/images/2023/04/06.png 1578w" sizes="(min-width: 720px) 720px"></figure><p>Regarding the other factors not accounted for in the baseline scenario:</p><p><strong>Factors that may increase rewards:</strong></p><ul><li>Increased DeFi activity after the update, potentially contributing to a period of higher execution rewards and APR immediately following Shapella.</li><li><a href="https://www.eigenlayer.xyz/?ref=p2p.org">Eigenlayer</a> mainnet release. Restaking will enable staked ETH to be used as cryptoeconomic security for protocols other than Ethereum, in exchange for protocol fees and rewards.</li></ul><p><strong>Factors that may decrease rewards:</strong></p><ul><li>A large influx of new validators may temporarily reduce the effectiveness of current validators due to increased attestation propagation time, affecting consensus rewards.</li><li>The average liquid staking APR for the first three months is likely to be lower than for those staked directly before Shapella (due to reward distribution among all pool members, even if their validators are not yet active).</li><li>The lengthy activation queue will implicitly impact those staked directly after Shapella, as validators do not receive any rewards while waiting for activation.</li><li>A shift of transactions from Ethereum to L2, leading to decreased priority fees & MEV rewards.</li></ul><h3 id="conclusion-navigating-the-shapella-upgrade"><strong>Conclusion: Navigating the Shapella Upgrade</strong></h3><p>The Shapella upgrade presents both challenges and opportunities for validators. To maximize benefits, validators should ensure they possess the necessary 0x01 withdrawal credentials, plan their withdrawal strategies, and be prepared for potential market fluctuations. By understanding the withdrawal process and adapting to the changing landscape, validators can ensure a successful experience with the Shapella upgrade.</p><hr><h3 id="more-about-ethereum">More about Ethereum</h3><ol><li><a href="https://www.stakingrewards.com/journal/choosing-the-best-using-metrics-and-data-to-choose-the-right-ethereum-validator/?ref=p2p.org">Choosing the Best</a>: Using Metrics and Data to Choose the Right Ethereum Validator.</li><li><a href="https://p2p.org/networks/ethereum/apr-simulator?ref=p2p.org">P2P.org APR simulator</a> that calculates the average expected APR and possible deviations.</li><li><a href="https://ethereum-staking.p2p.org/?ref=p2p.org">Institutional Ethereum Staking with P2P.org</a></li></ol>
from p2p validator
<p>We are excited to announce that the Tezos Mumbai upgrade has successfully passed and is now fully operational on Mainnet.</p><p>The Tezos Mumbai upgrade brings with it a host of new features and improvements, including:</p><ul><li>Epoxy - Tezos Validity Rollup (aka ZK-rollup) solution, allowing for instant finality due to SNARK’s proof-of-validity.</li><li>Reduced block time to 15 seconds, thanks to improved pipelining.</li><li>Ticket transfers between accounts, including implicit accounts.</li><li>New RPCs for ticket balances, improving ticket ownership visibility.</li><li>New Michelson operations, allowing for logical operations on bytes.</li></ul><p>The Mumbai upgrade also includes the activation of <strong>Smart Rollups on Mainnet, a powerful scaling solution</strong> that allows anyone to deploy decentralized WebAssembly applications with dedicated computational and networking resources. Furthermore, the <strong>upgrade disables Transaction Optimistic Rollups on Mainnet</strong>, as these can now be easily implemented through Smart Rollups.</p><p>In addition to the successful upgrade of the Tezos network, we are pleased to announce that our <strong>baker infrastructure has been upgraded as well</strong>. Our bakers have completed the necessary upgrades to ensure that they are able to continue providing secure and reliable services to XTZ stakers.</p><p>To learn more about the Tezos Mumbai update, check out the full preview post on the<a href="https://research-development.nomadic-labs.com/mumbai-preview.html?ref=p2p.org"> Tezos website</a>. The<a href="https://tezos.gitlab.io/protocols/016_mumbai.html?ref=p2p.org"> changelog</a> provides a detailed list of changes, and a general technical overview of Mumbai can be found in the protocol proposal’s<a href="https://tezos.gitlab.io/mumbai/protocol.html?ref=p2p.org"> technical documentation</a>.</p><p><em>This is a joint post from Nomadic Labs, Marigold, TriliTech, Oxhead Alpha, Tarides, DaiLambda & Functori.</em></p><h1 id="about-p2p"><strong>About P2P</strong></h1><p>P2P Validator began in 2018 with a mission to positively influence the development of POS technologies. At the time of the latest update, more than 750 million USD value is staked with P2P Validator by over 35,000 delegators across 40+ networks. We work closely with each network we support to push the developments of each project to new limits.</p>
from p2p validator
<p>This article will guide you through the process of staking KYVE using the Keplr wallet.</p><p>KYVE gives users customized access to blockchain’s data (not only Cosmos) by providing fast and easy tooling via PoS blockchain for decentralized data validation, immutability, and retrieval based on Cosmos SDK.</p><p>In this article we will guide you through the process of staking KYVE using the Ping explorer or any other explorer with stake functionality:</p><p><a href="https://explorer.kyve.network/kyve/staking?ref=p2p.org">https://explorer.kyve.network/kyve/staking</a></p><p>First of all, you need to connect your wallet on the top right of the page and make sure you have some $KYVE available to delegate. </p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/Av6kHQi07_mkNvfN9lb58Kxct8teMVrBa-mxTdQecCozkedJw2bcQz34n1DwXC6-6xsGpqK7jgFc7D6OAoRz08vsPayecqj6jfpjP2S-vc0P49ZTOy4ZAKTLBVEOfVxHNhdRbJno7nndNtQDN_MY6hw" class="kg-image" alt loading="lazy" width="602" height="172"></figure><p>Right now you can only stake KYVE with a Keplr wallet or with a leger wallet:</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/bM9baxc4J3zeG74nwxEKlTKsuNBApO_H8qbOxE2mjKSZVUxjqj12eZ4cI14xnrl7ChvRnL6Jljqnrau8zfqP1ihJZfvw5P4jxfu5-klsn9c6I7sJquoTdQBKPd38fuQCm9Utinu9r2WHQkLiUp0lgnk" class="kg-image" alt loading="lazy" width="602" height="236"></figure><p>After picking your device, create an account:</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/FZFavzQvGjCWqm3pZaQN6pf0Vf-EGcV4D9uZoSejXYFvD6bn2EJb1fK8r3NoT2c_ccApMmKxoevfhJifJnwgxcOm00cyyjH_BtqBaixpOnWzwk0sPIVJrP0UhqONhKdjs49Jv5E_Li69Zyp9GvMRDeY" class="kg-image" alt loading="lazy" width="602" height="271"></figure><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/v0QOszJeoryhJVUSSbHv_jZZ4S7BbpcG9_J6q5RHTSWxKW-j-7Vjpbzeg9oq1LpnIXfRZbOQxvP1alIMI2BRMF6P7KCVSLOU5q9W1YZi3FMefYlNgYMfj1p6gtnZjHEuDdzHPfTeaapjcVQWO9SW2AU" class="kg-image" alt loading="lazy" width="602" height="201"></figure><p>After connecting your wallet and creating an account, navigate to the staking page:</p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/uFWomV36uL4dk0oz2TFv_Hk4cKCTGC6gI4ZKFPSwf47WwlyDNvsyGvOoGsieAEXscFYrwxC_oskIoAd_n0vAq_FOIDk7gpELcuZyWA3xC_Iv60YbPIqi4GlC-0M8BkQlLtAqnx5C4TTEwJ5MxSuyacE" class="kg-image" alt loading="lazy" width="602" height="172"></figure><p>On the 'Staking' page, you need to find “<a href="https://explorer.kyve.network/kyve/staking/kyvevaloper1etduu5zlu4k20ph6uyyldw29ydua3ym0urmq0r?ref=p2p.org">P2P.ORG Validator</a>” from the list of validators. To delegate, click on the validator name or on the right button 'Delegate':</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/tFcNlbUhpY-cJ6fSU6gVVaWNAp9v2lvCI_ii-gy9a0pdoUgZZ1jfYbhO3CbIroHEC1SwtB5QZ377afGvR6BYLjydniMNV_s6cjDoLcm-3yOoyCbd218J_UIQSC2lPN8-FQ_GWZBfprkYHEX7AWCvbJs" class="kg-image" alt loading="lazy" width="602" height="173"></figure><p>A new window will pop up asking you to input the number of tokens you want to stake. Press “Send” to finish the delegation:</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/iL5aiTJzR6Jm_WoxyAs1HJakaaUY4QoSKz76GJzXje9R17r9aW57gILF7-JqF9ncGMYnW0CbTW9uz_J6e0tpGtcs-ntK91lj8b4MajgUYjA9CYxvCs1-BA1HWW7vH5Z4qgLy_EWKQ0LdJBOjqcBAvhs" class="kg-image" alt loading="lazy" width="580" height="500"></figure><p>You are all done. Your KYVE is now delegated to P2P!</p><hr><h2 id="about-p2p-validator">About P2P Validator</h2><p>P2P Validator is a world-leading staking provider with the best industry security practices and proven expertise. We provide comprehensive due-diligence of digital assets and offer only top-notch staking opportunities. At the time of the latest update, more than three billion of USD value is staked with P2P Validator by over 10,000 delegators across 25+ networks. Our infrastructure is under advanced monitoring with alerts and 24/7 technical support making it the best choice for institutional investors.</p><hr><p>Web: <a href="https://p2p.org/?ref=p2p.org">p2p.org</a><br>Twitter: <a href="https://twitter.com/P2Pvalidator?ref=p2p.org">@p2pvalidator</a><br>Telegram: <a href="https://t.me/P2Pstaking?ref=p2p.org">t.me/P2Pstaking</a></p>
from p2p validator
<p>On January 25th, 2023, P2P joined the Sui network testnet wave-2. We had also participated in the first wave of the testnet with the goal of understanding the node operation nuances of the Sui blockchain. The second testnet was a game played by validators and delegators to understand the network economics and staking specifics.</p><h3 id="high-level-overview-of-sui-economics-specifics">High-level overview of Sui economics specifics</h3><p>Sui is a layer one blockchain focused on scalability, user and developer experience, and utilizes its own variant of the Move programming language. It allows for consensus to be forgotten in simple use cases, and transaction processing is parallelized.</p><p><em>In this article, we will briefly cover two elements of the Sui economy:</em></p><ul><li>Storage Fund</li><li>Reference Gas Price Mechanism</li></ul><p>Let’s start with the <strong>storage fund</strong>. It plays the role of a compensation buffer to reward validators for on-chain data storage. It is evenly staked to validators and a portion of staking rewards get reinvested back into the fund. This parameter influences the overall reward calculation. It starts relatively low in the beginning but its share steadily increases slowly along with the storage growth.</p><p>Another element influencing the validator rewards is a <strong>Reference Gas Price [RGP]</strong>. It represents the minimum price at which validators are willing to process transactions. For users, it plays the role of a guide when propagating transactions ensuring that gas prices close to the reference price will be executed appropriately. Every epoch, validators submit their quotes for RGP and the protocol chooses the 2/3's percentile by stake as the epoch reference price.</p><p><strong>Staking rewards</strong> consist of stake subsidies and gas revenue. Subsidies are known for each epoch. For testnet-2 epoch, subsidies were equal to 0,01% * total stake (mainnet subsidies will differ from wave-2) making them relatively low compared to gas revenue. Validators could calculate expected gas revenue based on the selected RGP and on-chain activity. Each participant received random costs and had to select RGP to remain profitable but at a reasonable level to improve UX and maintain lower transaction costs for users.</p><h3 id="testnet-overview">Testnet overview</h3><p>The Sui team has prepared a dashboard to track the progress of the validators during the testnet If validators selected an RGP that was equal to or lower than the final epoch RGP, they received a bonus point. Points were also assigned for maintaining positive profitability during the epoch. The score rules were changed after the 6th epoch to switch the behavior of participants during the game, so some data will be split in two groups: The first group from epoch 2 to epoch 6, and the second group from epoch 7 to epoch 31. The first two epochs were experimental and were not counted and we excluded them from the analysis.</p><p>Validator shares and costs varied during the testnet, resulting in different capabilities to remain profitable and get into the ⅔ percentile in RGP voting leading to a semi-random points distribution. The analytics below can bring some clarity to the actual activity of participants during the testnet. <br><br><em>Important note, validators could have different goals and strategies for the game, and the data below should not be taken as a representation of participation quality. We set the following goals for the testnet:</em></p><ul><li>To align with Sui economics specifics</li><li>To understand the RGP selection process and build a reliable model to calculate it</li></ul><p>We decided to prioritize the calculation precision and set our RGP quotes for each epoch with a targeted profitability margin of 5-15%. Our goal was to strike a balance between maintaining profitability without overpricing the user experience. It’s important to note that the logic for the mainnet may differ from that of the testnet.</p><h3 id="wave-2-analytics">Wave-2 Analytics</h3><p>The economic conditions during the testnet changed every epoch, requiring validators to adjust their strategies in order to remain profitable. Out of the 41 validators, only 17 changed their RGP for 80% of the epochs during the testnet.</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/Kz0Q0-DgbF35ujQVJbD2hJ083ZFVCJ6HzY7JjfBd5sOgr3J5roudMxqoFNfpFMZobviLue1kpd_mbU2G2ebHCyPrTMdO1PttWC8dPs5dOw9ZtxLYO6QDxizl4W-ryEAfUZtM5M8HH4pvN18x48Vw8tE" class="kg-image" alt loading="lazy" width="615" height="351"></figure><p>Profitability was an important part of the assessment, and the following breakdown shows the number of epochs in which each validator had positive profits. However, it is important to note that validators may have had different goals for the testnet. Nonetheless, over 50% of participants were able to make a profit in 80% of the epochs.</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/DBwnNdG7x-WMqH9NevDtILzT8muOnKQmAA1vi00V3Olo_x9nC713a98Au4BYljCHAqJ-Ey-QovfX9OhRbk3tAswqGlhvwPS-O3YXS6LhQ2nmAzoCGNEsoJ-5ToA1_AQduBzBEDNbhZ2AFFbPOuv6M7k" class="kg-image" alt loading="lazy" width="624" height="296"></figure><p>This chart shows the total margin of validators during the testnet. We can observe changes in behavior after the rule change that stopped punishing validators for not being in the ⅔ percentile with their RGP quotes.</p><figure class="kg-card kg-image-card kg-card-hascaption"><img src="https://lh4.googleusercontent.com/MNJK1YAe8-t2MqRNbiAK-PqKKofoEi02oNgVaCcVdIivrJN8m7fmeuy5rw3PKfFqZeavV5wibb-7ewuWHHxCO1KRh_hBlAzh4K2KRNvTGmaDqTJzSSIivrA4bP4HrmuHdAXxY59N1zKqbG2jvi93YOY" class="kg-image" alt loading="lazy" width="624" height="304"><figcaption>Epochs 2-6</figcaption></figure><p>Epoch 7-31 resulted in a more selective approach that takes profit into consideration.</p><figure class="kg-card kg-image-card kg-card-hascaption"><img src="https://lh3.googleusercontent.com/P1bFZ02CXinViO1MTRo4xpJFGiJbf6io0xZX2Uz26PPDUAbCx9BjTKDnmTvV3TkobVWkxKrs3yFfLKH3KDkB_wrUseLcaPqrOSxR4D9-OctEFIjTDVQr_oddggTDX4qTECOVJ7ZNKotFUdj-KZ76rh8" class="kg-image" alt loading="lazy" width="624" height="304"><figcaption>Epochs 7-31</figcaption></figure><p>In the following plots, we will display the standard deviation of each validator, which indicates how stable and precise their margin was. A lower standard deviation indicates more precise and consistent RGP quotes. For instance, if a validator quoted around 10% margin most of the time, their deviation would be low.</p><figure class="kg-card kg-image-card kg-card-hascaption"><img src="https://lh5.googleusercontent.com/wn2t8VuyRxjTSWm8oBEYyNClUV-2WRc2jWuPrjFr27lGjFs0zqJmctTxbk65mpOcC1Db6SWJMD772ok_U5ZTCMlFUgplSQg6ghdFGsWzDtXDHuNBxkxuuIJtTecFg86wE59lfDVg0I0symK6pJhwxVQ" class="kg-image" alt loading="lazy" width="624" height="315"><figcaption>Epochs 2-6</figcaption></figure><figure class="kg-card kg-image-card kg-card-hascaption"><img src="https://lh3.googleusercontent.com/sofwFnKTNhtRXpRCAKN2bdZBsJUsOOCpkZ_Rsql67YEMFuChDmYKIfOvPZ0o6iFYiPoRwkWq-OMOsznP5SUVOgvehZ68yboAda2HJXpoGDaVIClwEJfyuRAmlRoFWtOYwDFcyMizoslIhFd9_VCn3TU" class="kg-image" alt loading="lazy" width="624" height="272"><figcaption>Epochs 7-31</figcaption></figure><p>Another way to represent margin statistics is through the mean, total and median margin parameters, which also provide insights into validator behavior. This chart excludes extreme values that deviate from the average by more than 2.5 standard deviations. If all three parameters are similar, it indicates that a participant successfully targeted and maintained the margin. For instance, the mean, total and median parameters for P2P vary from 8 to 11 percent, falling within the selected 5-15 percent range that we aimed for internally beforehand.</p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/zYeUw2njbpfDchttyajDZN5o_z0yS6SuhDXBHSdDCqhIQuhJb0RBZcNjzXf5ZoEFLlU-XNfNADzqUD4j5pk4q_WD9rieY2NG7Kc8WJ7yvf_BclWRA-O_FWYI99ZZdN1MvfQMuhAJ-zf918yo-3auryU" class="kg-image" alt loading="lazy" width="624" height="268"></figure><p><em>Feel free to explore the </em><a href="https://docs.google.com/spreadsheets/d/1XAe7rFMQ2I9BZHNiJHbcMZvgRXdu9KcGKXPfQo84Yus/edit?usp=sharing&ref=p2p.org"><em>spreadsheet with the data</em></a><em> and graphs provided in the article.</em></p><p>For a more detailed picture we have compiled a heatmap showing the deviation from each validator’s optimal RGP for each epoch. We assumed that the validator's optimal RGP is calculated based on a random margin value within the 5-15% interval. We can infer that In the second part of the game, validators moved towards profitability and calculated their RGP more precisely.</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/rmUHootLT_PQVFlI-hVLXMDAbtiYWtVGUIiMbvWZiNS1B1n6cn5vtI4Rr2wS3gx-d6MDlQlhV1oRv3inaytTRf_fHexlbeyskVzNPJKmv9QVeGUKKXTYRvPgbp1JqUqjGL6mka5tL_BW_4zYK2Kvj2c" class="kg-image" alt loading="lazy" width="624" height="573"></figure><h3 id="summary">Summary</h3><p>The Sui testnet-2 was an intriguing experiment that contributed to a better understanding of staking economics and network specifics.</p><ul><li>Validators were able to experiment with different calculations to develop their own strategies during the game</li><li>The main purpose of RGP is to maintain a balance between validator profitability and end-user experience</li><li>Using an optimal margin level for calculating RGP may be an effective way to achieve both goals</li><li>Calculating RGP involves multiple parameters that can fluctuate and may be difficult to predict in advance leaving room for modeling improvements over time</li><li>Participating in a testnet is an excellent opportunity to familiarise with network specifics and prepare for mainnet launch.</li></ul><p><em>If you’re interested in staking or in launching a white-label validator with us, feel free to express interest on p2p.org. We’ll keep you informed about key milestones and help you get onboarded to the mainnet from the very beginning.</em></p><hr><p><em>Special thanks to Alexey Toporov for aggregating the data and creating the charts for the article.</em></p><hr><h3 id="about-p2p-validator">About P2P Validator</h3><p><a href="https://p2p.org/?ref=p2p.org">P2P Validator</a> is a world-leading staking provider with the best industry security practices AAA SR-rating and proven expertise. We provide comprehensive due diligence on digital assets and offer only top-notch staking opportunities. At the time of the latest update, more than 1 billion USD value is staked with P2P Validator by over 40,000 delegators across 40+ networks. We have successfully participated in Sui testnet-1 & testnet-2 to become the most comprehensive partner for staking and branded node maintenance.</p>
from p2p validator
<p>Maximal extractable value (MEV) is the additional value that DeFi ecosystem participants (MEV searchers) can extract by influencing transaction inclusion and ordering in blocks produced by validators. Activities such as arbitrage, front-running, NFT sniping, sandwich trading and collateralized positions liquidation present in any DeFi ecosystem contribute to the MEV. Searchers are willing to pay extra fees for priority access to MEV opportunities. These fees ("MEV rewards") can generate significant amounts of additional revenue for validators and their delegators.</p><p>The Jito client, which was launched on Solana mainnet-beta in October, 2022, is the first third-party validator client for Solana which represents a significant improvement to Solana's validator software. Jito software enables more efficient transaction and bundle processing helping both validators and searchers effectively identify and exploit MEV opportunities while eliminating unproductive network spam. It allows validators running the Jito client and their delegators to earn additional revenue from MEV through the Tip Distribution on-chain program which collects and distributes the fees (or “tips”) in proportion equal to a commission set by a validator. The client adoption is good for the Solana ecosystem because it can increase the network's stability, incentivize more validator operators and stakers to join, and help Solana to become more attractive to DeFi ecosystem participants.</p><p>This article will explore statistics on the Jito client adoption within the Solana mainnet-beta cluster, such as the growth of the number of validators running the Jito client, their total active stake and market share. We will also explore the dynamics of MEV rewards generated and compare the performance of Jito validators with that of the rest of the cluster. Additionally, we will investigate whether the adoption of the Jito client has a significant impact on the performance of validators who started to use it. Through this analysis, we aim to shed light on the potential benefits and drawbacks of using the Jito client for validators operating within the Solana network. The data used in this report is publicly available through the P2P Validator public dashboard at: <a href="https://reports.p2p.org/superset/dashboard/jito_client_adoption/?ref=p2p.org">https://reports.p2p.org/superset/dashboard/jito_client_adoption/</a>.</p><h3 id="the-jito-client-adoption">The Jito client adoption</h3><p>The Jito client has been gaining traction among Solana validator operators, as reflected by the growing number of Jito validators (see the left chart in the figure below).</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/03/100.png" class="kg-image" alt loading="lazy" width="1450" height="1133" srcset="https://p2p.org/economy/content/images/size/w600/2023/03/100.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/03/100.png 1000w, https://p2p.org/economy/content/images/2023/03/100.png 1450w" sizes="(min-width: 720px) 720px"></figure><p>The significant increase in the number of Solana validators using the Jito client indicates a growing recognition of the software's advantages among operators.</p><p>The number of stakers receiving MEV rewards from Jito-enabled validators (the right chart in the figure above) is showing a positive trend, with two anomalies observed in epochs 385 (+84,075 stakers) and 404 (-82,420 stakers). These anomalies can be explained by the fact that during the epoch 385, the Everstake validator started using the Jito client, and then stopped doing so during the epoch 404, resulting in a sharp change in the number of stakers receiving MEV rewards.</p><p>The table below shows that a few validators have discontinued using the Jito client, with Everstake validator being the most notable among them. The reasons for these validators stopped using the client are unclear as there were no significant changes in the validators performance during the usage of the Jito client.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/03/101-1.png" class="kg-image" alt loading="lazy" width="1892" height="1271" srcset="https://p2p.org/economy/content/images/size/w600/2023/03/101-1.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/03/101-1.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/03/101-1.png 1600w, https://p2p.org/economy/content/images/2023/03/101-1.png 1892w" sizes="(min-width: 720px) 720px"></figure><p>Such important metrics measuring the Jito client adoption as total active stake and market share of validators running Jito client have significantly increased over the last ~50 epochs (as seen in the left and right charts in the figure below). The more active stake the validators running the Jito client have, the more slots are processed with the Jito client, and the more MEV opportunities become available for efficient utilization and redistribution<br></p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/03/102.png" class="kg-image" alt loading="lazy" width="1900" height="1073" srcset="https://p2p.org/economy/content/images/size/w600/2023/03/102.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/03/102.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/03/102.png 1600w, https://p2p.org/economy/content/images/2023/03/102.png 1900w" sizes="(min-width: 720px) 720px"></figure><p>The trend of decreasing average active stake per validator using the Jito client (see the middle chart in the figure above) indicates that more validators with smaller stakes are adopting the software. The increasing trend of Jito client adoption among smaller validators is a positive sign, indicating that even smaller validators can successfully run the software. The Jito client democratizes access to MEV with equal treatment for all validators. The growth in adoption by lower-stake validators demonstrates a strong interest in MEV opportunities from a community that was previously unable to access these benefits.</p><p>The Jito-related MEV rewards currently are very low (as seen in the figure below), which can be attributed to the current limited adoption of the client and lack of participation from MEV searchers. However, a sudden MEV rewards level change after epoch #403 cannot be solely attributed to the increase in the number of validators using the client or the growth of Jito-related active stake. This indicates that a relatively large DeFi ecosystem participant might have started leveraging the MEV extraction tools offered by Jito. As the Jito client gains validator market share, MEV searchers may see more benefits from integration and MEV rewards could rise.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/03/103.png" class="kg-image" alt loading="lazy" width="1450" height="1080" srcset="https://p2p.org/economy/content/images/size/w600/2023/03/103.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/03/103.png 1000w, https://p2p.org/economy/content/images/2023/03/103.png 1450w" sizes="(min-width: 720px) 720px"></figure><p>The share of MEV rewards taken by validators running the Jito client has recently increased from about 8% to 21.5% (see figure below). This is mainly due to new validators setting their MEV rewards commission rate to 100%, with many of them being unnamed validators taking 100% stake rewards commission, such as private or white label validators. <br></p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/03/109.png" class="kg-image" alt loading="lazy" width="1550" height="1114" srcset="https://p2p.org/economy/content/images/size/w600/2023/03/109.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/03/109.png 1000w, https://p2p.org/economy/content/images/2023/03/109.png 1550w" sizes="(min-width: 720px) 720px"></figure><h3 id="performance-of-the-validators-running-the-jito-client-vs-others">Performance of the validators running the Jito client vs. others</h3><p>The comparison of performance metrics between validators using the Jito client and those who are not is important to gain insights into the differences between the two groups and understand the potential impact of the Jito client on the Solana network.</p><p>Based on the chart below (see figure below), it appears that, on average, Jito validators have better uptime than other validators. This outcome is likely due to the fact that more experienced validators are more likely to experiment with the new Jito client software, while Solana also has a significant number of inexperienced validators with small stake who may not have yet developed the skills or infrastructure necessary to maintain high uptime.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/03/110.png" class="kg-image" alt loading="lazy" width="1450" height="1080" srcset="https://p2p.org/economy/content/images/size/w600/2023/03/110.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/03/110.png 1000w, https://p2p.org/economy/content/images/2023/03/110.png 1450w" sizes="(min-width: 720px) 720px"></figure><p>There are outliers for some epochs where the average uptime for Jito validators dropped significantly which is due to a specific validator named “DO NOT DELEGATE” with the vote account pubkey Dn2cRSWAfQpb3NyUJ2q33t1scBLxzo8TZBAyKsWhX7zh, which experienced downtime for 2700 minutes during that epoch and also experienced several very long periods of downtime in other epochs.</p><p>The average vote success rate chart displayed below (see figure below) indicates that Jito validators also generally earn more vote credits for their participation in Solana consensus compared to all other validators. However, due to the metric's volatility, the difference seems insignificant.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/03/111.png" class="kg-image" alt loading="lazy" width="1450" height="1080" srcset="https://p2p.org/economy/content/images/size/w600/2023/03/111.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/03/111.png 1000w, https://p2p.org/economy/content/images/2023/03/111.png 1450w" sizes="(min-width: 720px) 720px"></figure><p>The chart below (see figure below) displays the dynamics of the stake-weighted average block production rate for Jito validators and others, indicating a significant difference in favor of Jito validators. This suggests that the Jito client may indeed optimize transaction block processing.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/03/112.png" class="kg-image" alt loading="lazy" width="1450" height="1080" srcset="https://p2p.org/economy/content/images/size/w600/2023/03/112.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/03/112.png 1000w, https://p2p.org/economy/content/images/2023/03/112.png 1450w" sizes="(min-width: 720px) 720px"></figure><h3 id="performance-changes-after-adopting-the-jito-client">Performance changes after adopting the Jito client</h3><p>In the previous section, we visually compared the performance metrics of validators running the Jito client and those who are not and observed that there could be statistically significant differences between the two groups. However, the observed differences cannot be solely attributed to the client switch and suggest that other factors may be at play. For instance, early adopters of the Jito client may have more experience in operating validators, and there may be differences in hardware configurations, network connection, or operating conditions that affect performance. Additionally, there are over 2000 Solana validators not running the Jito client, many of which may be operated by inexperienced operators using cheaper hardware, which could further contribute to the observed performance differences.</p><p>In this section we estimate the impact of adopting the Jito client on the performance of Solana validators by comparing their performance metrics before and after adoption, while considering the unique characteristics of each validator. Due to the considerable variation in metrics epoch over epoch caused by external factors, the data was normalized by dividing their values in each epoch by the corresponding epoch average. This normalization method enables a better comparison of validators' relative performance over time and accounts for external factors that greatly impact the metrics for each validator in the cluster. The normalized metrics for each validator before and after the Jito client adoption were averaged to form two samples, which can be compared using the Wilcoxon signed-ranks test. By using the test on the averaged normalized data, we determined whether the adoption of the Jito client had a statistically significant impact on the performance metrics of Solana validators. To ensure sufficient statistical data for both periods, we only compared the performance metrics of 52 validators who ran the Jito client during 25% to 75% of the observed epochs (from 345 to 415). Comparing the relative uptime of validators before and after adopting the Jito client one can observe (see figure below) that the distribution of relative uptime before adoption is wider and has a heavier right tail.</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/KTSC4o2GgrZQ5C9E0unNZ7yc7qyvikUpwzMhY8_bL0n86jES3VN-gbeqTf30y19e_cOlIHCsvvAX4qjhYwx-8Bs0G0yjZHLKG0QM_hWeyWLdGLkyJylmA8uXk3Mn0dsG4DvEsyQxc36a7Tf5Ay24hxc" class="kg-image" alt loading="lazy" width="602" height="448"></figure><p>Using the Wilcoxon signed-ranks test, we found strong evidence (N = 52, V = 371, p < 0.01) that adopting the Jito client had a small negative impact on the relative uptime reducing the median by ~1.9 p.p. (from 105.8% to 103.9%).</p><p>It's possible that the negative impact on relative uptime is due to the fact that the software is relatively new and still undergoing updates and improvements. Testing of new features requires validator restarts that contribute to some of the downtime. Further research and analysis is needed to better understand the specific factors contributing to the observed differences.</p><p>Comparing the relative vote success rate of validators before and after adopting the Jito client, one can observe (see figure below) that the two distributions are almost identical.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/03/107.png" class="kg-image" alt loading="lazy" width="1450" height="1080" srcset="https://p2p.org/economy/content/images/size/w600/2023/03/107.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/03/107.png 1000w, https://p2p.org/economy/content/images/2023/03/107.png 1450w" sizes="(min-width: 720px) 720px"></figure><p>The Wilcoxon signed-ranks test showed no significant positive impact of adopting the Jito client on the relative vote success rate (N = 52, V = 648, p > 0.05).</p><p>Comparing the relative block production rate of validators before and after the adoption of the Jito client, one can observe (see figure below) that there are significant differences in the two distributions: the distribution of relative block production rate after adopting the Jito client is centered around 120%, while the distribution before adoption is centered around 105%.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/03/108.png" class="kg-image" alt loading="lazy" width="1450" height="1080" srcset="https://p2p.org/economy/content/images/size/w600/2023/03/108.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/03/108.png 1000w, https://p2p.org/economy/content/images/2023/03/108.png 1450w" sizes="(min-width: 720px) 720px"></figure><p>The Wilcoxon signed-ranks test showed strong evidence (N = 52, V = 946, p < 0.01) that the adoption of the Jito client had a significant positive impact on the relative block production rate of Solana validators increasing the median by ~9.4 p.p. (from 111.5% to 120.9%). The increased block production rate is likely due to the more efficient transaction processing enabled by the Jito client's optimized block engine.</p><h3 id="conclusion">Conclusion</h3><p>The Jito client represents a valuable addition to the Solana ecosystem, providing validators and their delegators with a new revenue stream from MEV opportunities, while helping the Solana network to be more stable.</p><p>The Jito client has yet to gain widespread adoption, however, the number of validators utilizing the software is steadily growing, along with the total active stake and staking market share attributed to the Jito client. Some validators have stopped using the client, but they constitute a small fraction and the reasons for this are unclear.</p><p>Additionally, Jito validators and their stakers have not yet earned significant MEV rewards, which may be due to the lack of usage of the client by MEV searchers and users. This situation should improve with broader adoption of the client and as searchers become more accustomed to the new tools.</p><p>On average, validators running the Jito client have better performance than others, although statistical analysis shows that uptime of the validators currently running Jito client has slightly decreased after the switch, while vote success rate has remained largely unchanged and block production rate has increased significantly.</p><p>For those interested in exploring the data further, P2P Validator's public dashboard provides access to all the data used in the report preparation: <a href="https://reports.p2p.org/superset/dashboard/jito_client_adoption/?ref=p2p.org">https://reports.p2p.org/superset/dashboard/jito_client_adoption/</a>.</p><h3 id="acknowledgments">Acknowledgments</h3><p>We would like to express our gratitude and appreciation to the P2P Validator team members, including <a href="https://twitter.com/pavpvlv?ref=p2p.org">Pavel Pavlov</a>, <a href="https://twitter.com/Sybertuk?ref=p2p.org">Anton Yakovlev</a>, <a href="https://twitter.com/stevencquinn?ref=p2p.org">Steven Quinn</a>, and <a href="https://twitter.com/abondar92?ref=p2p.org">Alexey Bondar</a> , for their invaluable guidance, support, and encouragement throughout this research. Furthermore, we would like to express gratitude to the <a href="https://twitter.com/jito_labs?ref=p2p.org">Jito Labs</a> team, especially <a href="https://twitter.com/brian_smith_0?ref=p2p.org">Brian Smith</a> and <a href="https://twitter.com/buffalu__?ref=p2p.org">Lucas Bruder</a>, for their support and openness during the research. We would also like to thank <a href="https://twitter.com/brianlong?ref=p2p.org">Brian Long</a> and his team for creating the <a href="https://twitter.com/ValidatorsApp?ref=p2p.org">Validators.app API</a>.</p><h3 id="sources">Sources</h3><p>Overall information on Jito & MEV:</p><ol><li><a href="https://jito-foundation.gitbook.io/mev/?ref=p2p.org">https://jito-foundation.gitbook.io/mev/</a></li><li><a href="https://medium.com/@Jito-Foundation/solving-the-mev-problem-on-solana-a-guide-for-stakers-7768308e93bc?ref=p2p.org">https://medium.com/@Jito-Foundation/solving-the-mev-problem-on-solana-a-guide-for-stakers-7768308e93bc</a></li></ol><p>Dashboards:</p><ol><li><a href="https://reports.p2p.org/superset/dashboard/jito_client_adoption/?ref=p2p.org">https://reports.p2p.org/superset/dashboard/jito_client_adoption/</a></li><li><a href="https://dune.com/pavelm/jitovalidatorsmevrewards?ref=p2p.org">https://dune.com/pavelm/jitovalidatorsmevrewards</a></li><li><a href="https://jito.retool.com/embedded/public/7e37389a-c991-4fb3-a3cd-b387859c7da1?ref=p2p.org">https://jito.retool.com/embedded/public/7e37389a-c991-4fb3-a3cd-b387859c7da1</a></li><li><a href="https://jito.retool.com/embedded/public/e9932354-a5bb-44ef-bce3-6fbb7b187a89?ref=p2p.org">https://jito.retool.com/embedded/public/e9932354-a5bb-44ef-bce3-6fbb7b187a89</a></li></ol><p>Data sources / APIs:</p><ol><li><a href="https://docs.solana.com/api/http?ref=p2p.org">https://docs.solana.com/api/http</a></li><li><a href="https://www.validators.app/?ref=p2p.org">https://www.validators.app/</a></li><li><a href="https://console.cloud.google.com/storage/browser/jito-mainnet?ref=p2p.org">https://console.cloud.google.com/storage/browser/jito-mainnet</a></li><li><a href="https://jito-foundation.gitbook.io/mev/jito-solana/tracking-jito-solana-validators?ref=p2p.org">https://jito-foundation.gitbook.io/mev/jito-solana/tracking-jito-solana-validators</a></li></ol><p><br></p><p><br></p><p><br></p><p><br></p>
from p2p validator
<p>We are pleased to announce that P2P has launched an MEV-enabled client on Solana validators which will allow P2P stakers to receive extra rewards from MEV starting today. <br></p><p>Maximum extractable value (MEV) is a growing capability in blockchain. It refers to the maximum profit a validator can make through its ability to include, exclude, or reorder transactions in the blocks it creates. By running a MEV-enabled client on validators, P2Ps gain access to MEV Opportunities, which can increase staker APR while having a positive impact on the quality of the Solana network.</p><h3 id="mev-boosted-client-adoption">MEV-boosted client adoption</h3><p>To maximize MEV rewards for stakers, P2P will use the open-source Jito-Solana Client, which has been <a href="https://jito-foundation.gitbook.io/mev/audits/audits?ref=p2p.org">audited by Neodyme</a>, a leading security and blockchain auditing firm. Jito-Solana represents a meaningful improvement to Solana’s validator software. It was intentionally designed to maximize MEV rewards and optimize their distribution to network validators and stakers. In addition, Jito-Solana was designed to combat spam and improve network efficiency. One of the ways that Jito-Solana achieved this is through its optimization of transaction processing. Jito-Solana offers more efficient transaction processing by bundling transactions and optimizing transaction ordering, which reduces the number of duplicated and unnecessary transactions and enables faster processing times.</p><p>For implementation, we conducted an in-depth analysis of the impact of the Jito MEV client on Solana’s network performance and adoption among Solana validators. You can find the full report <a href="https://p2p.org/economy/jitos-mev-boosted-client-adoption-impact-on-solana-validators-performance/">here</a>. </p><p>The key takeaways are:</p><ul><li>The Jito client has been gaining traction among Solana validator operators, as reflected by the growing number of validators running the client (currently 80), their total active stake (~55M SOL), and their market share (~15%).</li><li>We also observed a decrease in the average active stake per validator using the Jito client which indicates that more validators with smaller stakes are adopting the software. This trend is a positive sign as it shows that even smaller validators can successfully run the Jito client. The Jito client democratizes access to MEV with equal treatment for all validators. The growth in adoption by lower-stake validators demonstrates a strong interest in MEV opportunities from a community that was previously unable to access these benefits.</li><li>The total Jito-generated MEV rewards are currently relatively low due to limited adoption and lack of MEV searcher participation. This situation should improve with broader adoption of the client and as searchers become more accustomed to the new tools. We observed a significant increase in MEV rewards after January 2023 suggesting that a large DeFi participant started using Jito's MEV extraction tools and we believe that others will soon follow.</li><li>Jito-enabled validators have shown higher average uptime, a higher number of vote credits, and a significantly higher stake-weighted average block production rate.</li><li>Careful statistical analysis showed that block production rate for validators that switched to the Jito client has increased significantly. The increase is likely due to the more efficient transaction processing enabled by the Jito client's optimized block engine.</li></ul><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/YjlzfIMapEo0xV1CVCjMjZYeX1VMVKYrb-_mYKrB5D0_Ts3e6SqmHxcAnZOSO2fhMr1gA0lWNRPABEWSp62KhP5ZeU4P4AlhJgCPmj_ro9r-SV-hoEPLfV-tWq5oj-L-JpZ0aIhJU2h-0GSLwgDuUwI" class="kg-image" alt loading="lazy" width="624" height="361"></figure><p>Based on our research, we believe that the Jito client is a valuable addition to the Solana ecosystem, providing validators and their delegates with a new revenue stream from MEV capabilities while also improving the Solana network stability. Feel free to view the validator performance data, MEV validators rewards, MEV stakers rewards, and more using the public P2P Validator dashboard at: <a href="https://reports.p2p.org/superset/dashboard/jito_client_adoption/?ref=p2p.org">https://reports.p2p.org/superset/dashboard/jito_client_adoption/</a>.</p><h3 id="security-assurance">Security assurance</h3><p>To implement the MEV client on P2P nodes, automation was prepared and tested to seamlessly switch between Jito and the standard Solana client with 0-downtime in this case. Infrastructure security is the most important thing and we would like to add details about the possible security risks validators may face when switching to the Jito client.</p><p>Basically, Jito client is a set of patches applied to a standard Solana client, so theoretically it may have new vulnerabilities or performance degradations in some situations on current or future releases. We discussed these issues with Jito labs and found that 2 independent auditors checked Jito code base and checked the stability of the client on our testnet validator.</p><p>Although the probability of validator performance degradation caused by Jito client is not zero, we don’t think it is a big problem since we always monitor the performance of our validators against cluster average performance statistics (vote success rate, block skip rate) with automated alerting if performance issues are detected. Generally, our monitoring system will allow us to make quick decisions about falling back to a standard Solana client.</p><p>There are certain things that must be taken into account when switching to a standard Solana client:</p><ul><li>Solana Foundation releases a new client with a request to update immediately. Usually, it happens, when the Foundation wants to close a vulnerability or fix stability issues. Jito labs need days or weeks to release its patched version (since it requires a lot of testing) so in such cases, we will switch to the standard client and wait for the Jito client release.</li><li>We detect abnormal behavior of a validator according to our monitoring metrics or detect significant performance degradation (for example vote success rate is lower than the cluster average).</li><li>We receive information from public or closed sources about a vulnerability revealed in the Jito client. In this case, all our validators immediately get moved to a standard client and we will get in touch with Jito labs to clarify the situation.</li></ul><p>If switching to a standard client happened and it has been going on for more than 2 weeks we will notify you about that on our <a href="https://twitter.com/P2Pvalidator?ref=p2p.org">Twitter</a>, so please subscribe to our Twitter to be up-to-date about our services</p><p>We believe that adopting the Jito client will drive MEV rewards. Performance should also improve even further as the client becomes more widely adopted and as searchers become accustomed to the new tools.</p><h3 id="sharing-mev-rewards-with-sol-stakers">Sharing MEV rewards with SOL stakers</h3><p>New and old P2P stakers alike have the opportunity to increase their revenue through extra MEV rewards. P2P will take an 8% commission from MEV rewards, distributing 92% of the rewards to stakers, according to their share.</p><p>The Jito Tip Distribution Program is the on-chain program that collects and distributes MEV rewards to eligible validators and stakers. At the end of an epoch, the MEV rewards earned by a validator are stored in a special account derived from the validator's vote account and the corresponding epoch.</p><p>Once the epoch is over, the validator generates a data structure containing the rewards claims for all validators and stake accounts and uploads it on-chain. Then validators and stakers receive the MEV rewards in the form of an automatic airdrop performed by Jito to the validators’ vote accounts and stakers stake accounts. The claim action is permissionless, meaning others could execute it if Jito failed to do so properly. Note that distributed rewards are not automatically staked (auto compounded) and the stake account owner is required to withdraw or stake the airdropped rewards.</p><p>Stakers and validators can check their rewards using the <a href="https://reports.p2p.org/superset/dashboard/jito_client_adoption/?ref=p2p.org">P2P Validator’s dashboard with Jito & MEV </a>statistics or <a href="https://jito.retool.com/embedded/public/e9932354-a5bb-44ef-bce3-6fbb7b187a89?ref=p2p.org">Jito’s MEV rewards dashboard</a>. Anyone can check their rewards using public explorers, the details to do so are available in <a href="https://jito-foundation.gitbook.io/mev/mev-payment-and-distribution/faqs?ref=p2p.org">Jito’s documentation</a>.</p><h3 id="about-p2p">About P2P</h3><p>P2P Validator began in 2018 with a mission to positively influence the development of POS technologies. At the time of the latest update, more than 750 million USD value is staked with P2P Validator by over 35,000 delegators across 40+ networks. We work closely with each network we support to push the developments of each project to new limits. <br></p><p>Beginning as seed investors and validating from the genesis block, we have shown tremendous support to the Solana ecosystem since day one and are now trusted with over $120m under management. Our proficiency is shown not only by our excellent validating track record & our published research papers written on network performance (<a href="https://www.stakingrewards.com/journal/solana-validators-performance-research-report-part-1-downtime-analysis/?ref=p2p.org">Downtime</a>, <a href="https://www.stakingrewards.com/journal/solana-validators-performance-research-report-part-2-skip-rate-analysis/?ref=p2p.org">Skip Rate</a>) to improve the network health and development, but also by our involvement across projects including <a href="https://portalbridge.com/?ref=p2p.org#/transfer">Wormhole Bridge</a>, <a href="https://pyth.network/?ref=p2p.org">Pyth</a>, and <a href="https://neon-labs.org/?ref=p2p.org">Neon EVM</a> to help build Solana’s network infrastructure.<br></p>
from p2p validator
<!--kg-card-begin: markdown--><p>Table of Contents</p> <ul> <li><a href="#T1"><span style=" font-size:16px"> Introduction </span></a></li> <li><a href="#T2"><span style=" font-size:16px"> Dataset and dashboard </span></a></li> <li><a href="#T3"><span style=" font-size:16px"> Building hypothesis </span></a> <ul> <li><a href="#T4"><span style=" font-size:16px"> Full sample dataset </span></a></li> <li><a href="#T5"><span style=" font-size:16px"> Truncated dataset for potentially censored transactions </span></a></li> </ul> </li> <li><a href="#T6"><span style=" font-size:16px"> Censorship analysis (10.02.2023 - 14.02.2023) </span></a> <ul> <li><a href="#T7"><span style=" font-size:16px"> Exploratory Data Analysis </span></a></li> <li><a href="#T8"><span style=" font-size:16px"> Statistical analysis </span></a></li> <li><a href="#T9"><span style=" font-size:16px"> Potentially censored sample dataset </span></a></li> </ul> </li> <li><a href="#T11"><span style=" font-size:16px"> Conclusions </span></a></li> <li><a href="#T12"><span style=" font-size:16px"> Future plans </span></a></li> </ul> <h2 id="introduction-a-namet1a">Introduction <a name="T1"></a></h2> <p>This article is our submission to Lido’s Ethereum censorability monitor grant.</p> <p>Ever since the Ethereum merge, MEV-boost has become a significant part of the ecosystem. At the same time, the US government via the Office of Foreign Assets Control (OFAC) have imposed sanctions on <a href="https://github.com/eth-educators/ethstaker-guides/blob/main/MEV-relay-list.md?ref=p2p.org">certain digital addresses</a>. MEV-relays are now divided between those which are OFAC-compliant and those which are not.</p> <p>The main goal of this article is to demonstrate the influence of this censorship on blockchain degradation and propose a solution to monitor the censorship problem in the Ethereum blockchain.</p> <p>For the purpose of this paper, we will refer to the time difference between when a transaction enters the mempool and is included in a block as "delay".</p> <h2 id="dataset-and-dashboard-a-namet2a">Dataset and dashboard <a name="T2"></a></h2> <p>Our sources of data:</p> <ol> <li>Mempool public data.<br> This data was collected via a web3 python package and kept in our Data warehouse (DWH) and only one node was used (located in Europe). The data was streamed 24/7 and we parsed approximately 1-1.2m potential transactions per day. Our mempool sample covers about 95% of all transactions in the public Ethereum dataset.</li> <li><a href="https://cloud.google.com/blog/products/data-analytics/ethereum-bigquery-public-dataset-smart-contract-analytics?ref=p2p.org">Public Ethereum Dataset</a></li> <li><a href="https://github.com/eth-educators/ethstaker-guides/blob/main/MEV-relay-list.md?ref=p2p.org">Level of censorship applied by relays</a></li> <li>Block information obtained directly from Relays (e.g. <a href="https://0xac6e77dfe25ecd6110b8e780608cce0dab71fdd5ebea22a16c0205200f2f8e2e3ad3b71d3499c54ad14d6c21b41a37ae@boost-relay.flashbots.net/?ref=p2p.org">flashbots</a>)</li> <li><a href="https://github.com/ultrasoundmoney/ofac-ethereum-addresses/blob/main/README.md?ref=p2p.org">Government-sanctioned list of digital addresses</a></li> <li>Lido validator pubkeys. We used the validator dataset from Lido.</li> </ol> <p>After the data was processed, we created a large dataset. The table below contains a description of the main variables:</p> <!--kg-card-end: markdown--><!--kg-card-begin: html--><table style="border:none;border-collapse:collapse;"><colgroup><col width="200"><col width="142"><col width="309"></colgroup><tbody><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Column name</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Data type (units)</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Description</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">block_hash</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">STRING</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Unique block identifier from the public Ethereum dataset</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">transaction_hash</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">STRING</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Unique transaction identifier from the public Ethereum dataset</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">to_address</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">STRING</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Transaction receiver</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">from_address</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">STRING</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Transaction sender</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">block_timestamp</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">TIMESTAMP</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Timestamp at which the block was created</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">mempool_timestamp</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">TIMESTAMP</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Timestamp of when we parsed the mempool transaction</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">time_diff</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">BIGINT (seconds)</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Time difference between when a transaction enters the mempool and is included in a block</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">block_diff</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">INT </span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Number of blocks produced between when a transaction enters the mempool and is finalized </span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">gas</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">BIGINT</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Gas allocated to the transaction </span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">gas_price</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">BIGINT</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Gas price</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">gas_fact</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">BIGINT</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Gas spent </span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">max_fee_per_gas</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">BIGINT</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">base_fee + max_priority_fee</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">max_priority_fee_per_gas</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">BIGINT</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Additional fee to speed up transaction</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">relay</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">STRING</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Name of relay</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">num_transaction</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">INT</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Number of transactions within a block</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">height</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">BIGINT</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Serial number of the block</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">builder_pubkey</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">STRING</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Unique address of MEV-builder</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">lido_validator</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">STRING</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Company of Lido validator (null if it is not a Lido validator)</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">transaction_censured_from</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">BOOLEAN</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">True if the </span><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">sending</span><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> address is under the sanctioned list</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">transaction_censured_to</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">BOOLEAN</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">True if the </span><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:italic;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">receiving</span><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;"> address is under the sanctioned list</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">error_dummy</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">BOOLEAN</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">True if the transaction failed</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">censured_relay</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">BOOLEAN</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">True if the relay is censuring transactions</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">lido_validator_dummy</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">BOOLEAN</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">True if the Lido validator produces block</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">mev_dummy</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">BOOLEAN</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">True if the block is produced by MEV-builders</span></p></td></tr></tbody></table><!--kg-card-end: html--><p>This dataset is available on <a href="https://console.cloud.google.com/bigquery?p=bigquery-public-data&d=covid19_open_data&page=dataset&project=&ref=p2p.org">Google BigQuery</a> in the table `p2p-data-warehouse.p2p_public.eth_mev_censored`.</p><p>Based on the data described above, we’ve created a <a href="https://reports.p2p.org/superset/dashboard/ethereum_censorability_monitor?ref=p2p.org">dashboard</a> with the main characteristics of Ethereum transactions.</p><p><strong>Dashboard description</strong></p><p>Our dashboard has 6 parts:</p><ol><li><strong><strong><strong>General data info. </strong></strong></strong>Data about transactions and blocks within the Ethereum blockchain, delay and transaction cost.</li><li><strong><strong><strong>Censorship between relays. </strong></strong></strong>Here we showcase the share of blocks for each MEV relay and the average delay for censorship and non-censorship MEV relays.</li><li><strong><strong><strong>Censorship addresses. </strong></strong></strong>Here we showcase all the available information about addresses that are under the OFAC-sanctioned list.</li><li><strong><strong><strong>Lido vs Other validators. </strong></strong></strong>Here we divide transactions between those validated by Lido and other validators for comparison. </li><li><strong>Censorship between MEV-builders</strong>. Here we showcase a few metrics for every MEV-builder in the Ethereum ecosystem.</li></ol><!--kg-card-begin: markdown--><h2 id="building-hypothesis-a-namet3a">Building hypothesis <a name="T3"></a></h2> <h3 id="full-sample-dataset-a-namet4a">Full sample dataset <a name="T4"></a></h3> <p>Our main goal is to estimate the level of blockchain degradation, i.e. longer time to verify transactions and higher transaction costs, that may be caused by censorship. We hypothesize that longer delays and higher transaction costs could be a sign of censorship.</p> <p>We hypothesize that our main metrics (delay and transaction costs) could be statistically different in the following subgroups:</p> <ul> <li>MEV-boost / non-MEV-boost</li> <li>Relays (OFAC-compliant/non-compliant)</li> <li>Lido validators versus others</li> </ul> <p>We also want to check the level of censorship employed by Lido validators so we are going to check the following hypothesis:</p> <ol> <li>MEV transactions may be under censorship and it can lead to a slowdown in operations compared to non-MEV.</li> <li>Delay and cost of transactions could be different between Lido validators and other validators.</li> <li>Relays that censor transactions can have a longer delay than other relays.</li> <li>OFAC-compliant relays could take longer to process transactions compared to other relays</li> <li>The probability of some transaction being included in the Nth block in the case of OFAC/not-OFAC could be different.</li> <li>The probability to be included in the OFAC block for Lido validators could be different, compared to non-Lido validators.</li> </ol> <h3 id="truncated-dataset-for-potentially-censored-transactions-a-namet5a">Truncated dataset for potentially censored transactions <a name="T5"></a></h3> <p>We want to highlight a certain amount of transactions whose high time delay could not be explained by normal network conditions. Such transactions will be suspect of being subject to censorship. To realise this, we must take into account the following transaction properties.</p> <p><strong>High delay</strong></p> <p>We will start by choosing all the transactions over a certain threshold for the time delay in seconds.</p> <p><strong>Successful transactions</strong></p> <p>Next, we will only consider successful transactions since failure could be a reason for the delay.</p> <p><strong>Low transaction fees</strong></p> <p>Another reason for a transaction to have a high delay could be low fees. That is why we should account for that and start by checking the transaction fee.</p> <p><strong>Previous transaction pending</strong></p> <p>Sometimes transactions could delayed simply because a previous transaction from the same sender had not yet finished. We use nonce parameters to exclude these transactions in our analysis.</p> <p>After forming the truncated dataset, we will try to find out the reasons for the high delay in censored transactions: government-driven or ethical censorship. We will check the receiver and sender addresses against the sanctioned list and share OFAC/ethical censoring MEV-relays. Results across the full daily dataset can be found in our dashboard.</p> <h2 id="censorship-analysis-1002202314022023-a-namet6a">Censorship analysis (10.02.2023 - 14.02.2023) <a name="T6"></a></h2> <p>The code required to reproduce our results is available <a href="https://colab.research.google.com/drive/1HdhxlRsYZnrtezLSlbIMCVfnxCiOQRF8?ref=p2p.org#scrollTo=2WYofE9GY13s">here</a></p> <h3 id="exploratory-data-analysis-a-namet7a">Exploratory Data Analysis <a name="T7"></a></h3> <p>Our sample dataset has 4 798 993 transactions and of those, 153 847 (~3%) are failed transactions.</p> <p>The delay for most transactions does not exceed 27 seconds (95% quantile) and almost every transaction has been delayed for only one block (block_diff = 1).</p> <p>Most transactions have fees with a skewness of zero. The difference between the 99.5% quantile and the 95% quantile is greater than 4 times the fee. The table below shows the transaction time delay and fees.</p> <!--kg-card-end: markdown--><p><strong>Main quantiles for delay and fees</strong></p><!--kg-card-begin: html--><table style="border:none;border-collapse:collapse;"><colgroup><col width="157"><col width="53"><col width="50"><col width="52"><col width="43"><col width="46"><col width="51"><col width="43"><col width="55"><col width="48"><col width="62"></colgroup><thead><tr style="height:0pt"><th style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;" scope="col"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:13pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Variable</span></p></th><th style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;" scope="col"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:10pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">5%</span></p></th><th style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;" scope="col"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:10pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">10%</span></p></th><th style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;" scope="col"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:10pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">25%</span></p></th><th style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#ffd966;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;" scope="col"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:10pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">50%</span></p></th><th style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;" scope="col"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:10pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">75%</span></p></th><th style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;" scope="col"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:10pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">90%</span></p></th><th style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;" scope="col"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:10pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">95%</span></p></th><th style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#e06666;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;" scope="col"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:10pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">97.5%</span></p></th><th style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#e06666;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;" scope="col"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:10pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">99%</span></p></th><th style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#e06666;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;" scope="col"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:10pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">99.5%</span></p></th></tr></thead><tbody><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:12pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:700;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Delay, secs</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:12pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">1</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:12pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">2</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:12pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">4</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#ffd966;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:12pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">8</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:12pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">10</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:12pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">15</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:12pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">27</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#e06666;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:12pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">122</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#e06666;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:12pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">972</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#e06666;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:12pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">11984</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;text-align: center;margin-top:0pt;margin-bottom:0pt;"></p></td></tr></tbody></table>
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<p>RPC stands for Remote Procedure Call, and it refers to a protocol that allows a computer program to request services from a server in a network. In the cryptocurrency sphere, RPC is commonly used for communication between client applications and blockchain nodes. An RPC node serves as an interface for developers to interact with the blockchain, allowing them to access its data and execute transactions. The RPC protocol provides a standardized way for clients to communicate with the node, allowing them to query the blockchain, submit transactions, and perform other operations. By using an RPC node, developers can build and deploy decentralized applications on networks like Ethereum.</p><p>RPC nodes can be divided into two main areas: <a href="https://p2p.org/economy/shared-and-dedicated-rpc-nodes/">shared or dedicated</a>. Shared nodes are less secure and less reliable compared to dedicated nodes, but they are also less expensive and require less maintenance. However, dedicated nodes are the preferred choice for organizations requiring a high-security level, reliability, and performance. When working with dedicated RPC nodes, it's important to ensure that they are properly maintained and managed.</p><p>The maintenance of a dedicated Ethereum RPC node can be done in two ways: in-house or by outsourcing. In-house maintenance involves having a dedicated team responsible for managing the Ethereum node. This team is responsible for setting up, configuring, and maintaining the node, as well as troubleshooting any issues that may arise. This approach requires significant investment not only in hardware and software but also in terms of personnel and can be time-consuming and resource-intensive.</p><p>Outsourcing, on the other hand, involves contracting a specialized service provider to handle the maintenance and management of a node. This approach allows the organization to benefit from the expertise and resources of the service provider, who is responsible for ensuring the node is up-to-date, secure, and functioning properly. By outsourcing the RPC node maintenance we can reduce costs, improve security, and free up valuable time and resources that can be redirected to more critical tasks.</p><p>The following are some key benefits of outsourcing RPC node maintenance.</p><h3 id="saving-time-and-resources">Saving Time and Resources</h3><p>Maintaining an RPC node requires continuous monitoring and troubleshooting to ensure that the node is up-to-date and functioning properly. This can consume a significant amount of time and resources from a company's development and operations teams. By outsourcing this task to a specialized service provider, companies can free up valuable time and resources that can be redirected to more critical tasks.</p><h3 id="reliability-and-security">Reliability and security</h3><p>Outsourcing the maintenance and management of Ethereum RPC nodes can provide a high level of reliability and security, ensuring that the node is always up-to-date, secure, and functioning properly. Service providers specializing in Ethereum RPC node maintenance offer expertise, round-the-clock monitoring, quick response times, and regular maintenance to minimize the risk of downtime and technical issues. By outsourcing, organizations can improve the reliability of their systems, reduce risk, and increase operational efficiency, leading to improved customer satisfaction.</p><h3 id="reduced-costs">Reduced Costs</h3><p>In-house maintenance of an RPC node requires significant resources, including hardware, software, and personnel. By outsourcing it, companies can reduce their costs and minimize the need for expensive hardware and software investments. Additionally, they can avoid the cost of hiring and training employees to handle maintenance tasks.</p><p>For example, let's assume that an in-house DevOps engineer earns $100,000 per year, and it takes approximately 300 hours per year to maintain an Ethereum RPC node (research, updates, support, etc.). So the cost of in-house maintenance would be around $16500 for salary alone. RPC nodes also require servers to function. For an Ethereum RPC node, the price will be around $500 per month.</p><p>It turns out that the actual cost of supporting one node would be around $22500. This approach, however, won't provide you with the confidence that it will work properly around the clock. In most cases, one engineer cannot adequately cover all tasks, since failures and problems can occur at any time (at night, on holidays, etc.). For this reason, a 24/7 team is necessary. </p><h3 id="conclusion">Conclusion</h3><p>Outsourcing Ethereum RPC node maintenance can provide a wide range of benefits, including saving time and resources, improved security, and reduced costs. By outsourcing this task to a professional service provider, companies can focus on their core business functions while ensuring that their RPC node is properly maintained and secure. This can result in significant cost savings and a more efficient use of resources.</p><p>Unleash the full potential of your Ethereum or other network projects with our dedicated RPC node maintenance services. Partner with us at P2P and let us take care of the technicalities while you focus on developing innovative, game-changing products. Whether you're diving into the world of Web3 infrastructure or simply need reliable maintenance, we've got you covered. Contact us now to experience a hassle-free and seamless journey towards success!</p><p>Contact us at [email protected]</p>
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<p>RPC nodes allow external applications to communicate with the blockchain network to execute commands or retrieve information. These nodes serve as a bridge between the blockchain network and external systems, enabling these external systems to interact with the blockchain. You can find a more detailed overview of this functionality at this link – <a href="https://p2p.org/economy/rpc-node/">https://p2p.org/economy/rpc-node/</a></p><p>In this article, we look at the differences between shared and dedicated nodes.</p><h3 id="shared-rpc-nodes">Shared RPC nodes</h3><p>Shared RPC nodes can be a cost-effective solution for accessing a blockchain network, as it eliminates the need for each user or application to set up and maintain its own node. The downside is that a shared RPC node may not be as performant as a dedicated node since the resources and processing power are shared among multiple users, leading to slower response times and lower overall productivity.</p><p>Shared nodes are often used by smaller organizations, developers, and individuals who need access to the blockchain, but do not have the resources to support a dedicated node. They are a cost-effective solution for those who need to make occasional or low-volume queries.</p><p>Advantages of a shared RPC node include:</p><ul><li>Lower maintenance costs: A shared node requires a smaller hardware and technical support investment, making it a more affordable option for organizations and individuals who need occasional or low-volume access to the blockchain.</li><li>Advanced Features: Some of these services may offer advanced features, such as data analytics and monitoring tools, making it easier to manage and monitor interactions with a blockchain network.</li><li>Fast Scalability: These services can scale to accommodate a large number of users or applications, making it possible to access the blockchain network at a large scale.</li></ul><p>However, it is important to note that shared nodes have some disadvantages, including:</p><ul><li>Reduced control over node configuration: Users have limited control over the configuration of their shared node, which may limit their ability to make changes to the node's settings, run custom scripts, and implement additional security measures.</li><li>Potential security risks: Sharing a server with other users increases the risk of potential security threats, as unauthorized access to the server could compromise the security of the node and its users.</li><li>Dependence on server provider: Shared nodes are dependent on the reliability and security of the shared server provider, which can be a concern for organizations and individuals who require a high level of security and control over their connection to the network.</li></ul><p>In conclusion, shared RPC nodes are a good choice for organizations and individuals who need occasional or low-volume access to the blockchain, and who have limited resources to support a dedicated node. These may include developers, small organizations, and individuals who need to build and test dApps or access data. In some cases, sharing a node is also an excellent choice for specific tasks that do not require a high level of performance. However, one should be aware of the potential security risks and limitations of using a shared node, and should carefully evaluate their needs and requirements before making a decision.</p><h3 id="dedicated-rpc-nodes">Dedicated RPC nodes</h3><p>Dedicated nodes are often used by organizations that require a higher level of security and control over their connection to the network. They are ideal for enterprise-level dApps, exchanges, wallet providers, and other organizations that need to access a blockchain network on a regular basis.</p><p>Advantages of a dedicated RPC node include:</p><ul><li>An unlimited number of requests: The main benefit of using a dedicated RPC node is the ability to handle unlimited requests, as the node is not shared among multiple users or applications. This allows the user to make as many requests as needed, without having to worry about the impact on other users or applications. This is particularly useful for applications or users with high volumes of requests, as it ensures that the requests can be processed quickly and efficiently, without the risk of slowing down or disrupting the network. Hardware is the only factor that limits performance. </li><li>Full control over node configuration: Users have complete control over the configuration of their dedicated node, including the ability to make changes to the node's settings, run custom scripts, and implement additional security measures.</li><li>High performance: Dedicated nodes have the processing power and memory necessary to handle high volumes of transactions and data. This is especially important for dApps and clients that require real-time data access and updates.</li></ul><p>However, it is important to note that dedicated nodes have some disadvantages, including:</p><ul><li>High maintenance costs: Maintaining a dedicated node requires ongoing investment in hardware and technical support, which can be a significant cost for some organizations.</li><li>Complexity: Setting up and configuring a dedicated node can be complex, requiring a high level of technical expertise.</li></ul><p>In conclusion, dedicated RPC nodes are a good choice for organizations that require a high level of security and control over their connection to the network, and that have the resources to support the ongoing maintenance and storage requirements of a full node. These may include enterprise-level dApps, exchanges, wallet providers, and other organizations that need regular access to the blockchain.</p><p>Nevertheless, maintaining the nodes yourself may not always be necessary. It is possible to order a dedicated RPC node service from third-party contractors, who specialize in providing blockchain infrastructure and support services. These contractors can set up and maintain a dedicated node on behalf of the user, offering a more convenient and cost-effective solution compared to setting up and maintaining a node in-house. Third-party contractors typically have the technical expertise and resources to manage and maintain dedicated nodes, providing a high level of reliability and performance. This can be an attractive option for organizations or individuals who want the benefits of a dedicated node but lack the resources or expertise to set one up themselves.</p><h3 id="conclusion">Conclusion</h3><p>In complex projects, both shared and dedicated RPC nodes can be used in combination, depending on the specific needs and requirements. For example, a shared node could be used for general-purpose requests, while a dedicated node could be used for more resource-intensive tasks or for handling high volumes of requests. This approach allows organizations or individuals to balance the benefits of shared nodes, such as accessibility and affordability, with the benefits of dedicated nodes, such as reliability and performance. By using a combination of both shared and dedicated nodes, organizations can create a scalable and flexible infrastructure that can meet the demands of their project and evolve as the project grows and changes over time.</p><p>It is important to seek advice from professionals when designing and implementing an RPC infrastructure, as they can help to ensure that the right solution is chosen. Professional consultants can help organizations or individuals understand the different options available, including shared and dedicated nodes, and can recommend the best solution based on factors such as cost, performance, scalability, and security. By working with professionals, organizations can avoid making costly mistakes and ensure that their infrastructure is set up correctly, which can save time and money in the long run. </p><p>P2P offers support in setting up or maintaining your Web3 infrastructure. We can assist in determining the optimal configuration for your RPC nodes and addressing any related infrastructure needs.</p><p>Contact us at [email protected]<br></p><p><br></p>
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<p></p><p>Remote procedure call (RPC) is one of the critical tools of the blockchain ecosystem. With the help of RPC, it is possible to implement almost any service based on blockchain data.</p><p>Decentralized applications (dApps), require access to a huge amount of information from the blockchain. This can be in the form of historical data, transaction history, node connections, block numbers, etc. and to access this data, it is necessary to query the blockchain.</p><p>There are several reasons why having a dedicated RPC node is a good idea:</p><ul><li>Control: Full control over the node and its data can be gained, which allows customization to suit specific needs such as configuring it to store more historical data than a typical node.</li><li>Security: As complete visibility and control over the node and its data is achieved, this translates to an increase in security. This can assist in preventing unauthorized access to the data and reducing the risk of data breaches.</li><li>Privacy: Complete privacy can be achieved since the data is not shared with third parties.</li><li>Independence: Dependency on a third party can be avoided, which can help ensure continuity of service, even in the event of third-party nodes going offline or becoming unavailable.</li><li>Performance: Improved performance can be achieved through direct control over the resources available to the node.</li><li>Compliance: Compliance with regulations or data privacy laws may require a dedicated node in some industries or regions.<br></li></ul><p>Overall, running your own RPC Ethereum node can provide greater control, security, privacy, independence, performance and compliance for your specific needs.</p><p>However, doing it yourself would require a lot of DevOps team resources. Not only for deploying the solution, but also for further maintenance. That's why it's often better to turn to professionals on this issue. P2P can help you maintain your own dedicated nodes with low latency, with servers in the US, EU and Asia Pacific. You get the benefits of a dedicated machine without the headache of having to manage it.</p><h3 id="the-main-use-cases-for-rpc-nodes">The main use cases for RPC Nodes</h3><p>There are several use cases for Remote Procedure Call (RPC) nodes in blockchain:<br></p><ul><li>Decentralized applications (dApps): dApps rely on the network to function, and they often use RPC nodes to communicate with the network and access the blockchain data they need.</li><li>Smart contract development: Developers use RPC nodes to test and deploy smart contracts on networks.</li><li>Wallet development: Wallet developers use RPC nodes to access blockchain data and perform transactions on behalf of users.</li><li>Token and cryptocurrency exchanges: Exchanges use RPC nodes to access blockchain data and perform transactions on behalf of users.</li><li>Blockchain analytics: Analysts and researchers use RPC nodes to access and analyse blockchain data.</li><li>Auditing: Auditing firms use RPC nodes to access blockchain data and perform audits on smart contracts, tokens and other assets.</li><li>Payment processing: Companies and organizations use RPC nodes to process payments and transactions on the Ethereum network.<br></li></ul><p>These are just a few examples of the many ways that RPC nodes can be used.</p><h3 id="what-is-an-rpc-endpoint">What is an RPC endpoint?</h3><p>Typically, an RPC endpoint is a point on the network where a program sends RPC requests to access server data. With an RPC endpoint, you can easily perform operations that use real-time blockchain data in your dApp.</p><p>The appropriate software needs to be installed on a node in order to respond to RPC requests. RPC endpoints run on nodes connected to the blockchain service through which your dApp receives information for its users. Therefore, all RPC endpoints run on RPC nodes, and all RPC nodes have RPC endpoints. </p><h3 id="full-node-and-archive-node">Full node and archive node</h3><p>Depending on your use case, the type of node you need will vary. RPC nodes can also be divided into two main types - full nodes and archive nodes. The difference is in the depth of history that the nodes keep.</p><p>A full node keeps the current state of the blockchain and contains all the data on the network except trace data for transactions beyond the most recent blocks. </p><p>An archive node is a type of node that stores the entire blockchain history. This allows the node to provide access to historical data and transactions, which can be useful for various purposes such as analyzing the blockchain's past performance or auditing the network's activity. These nodes typically require a large amount of storage and computational resources to run, as they must maintain a copy of the entire blockchain. They are also known as full archive nodes or simply archive nodes.</p><p>To sum up, an archive node is a full node that additionally maintains a database of historical blockchain states. Full nodes can calculate historical states, but archive nodes have the information readily available locally and have better performance for this type of request.</p><h3 id="the-standard-rpc-specification">The standard RPC specification</h3><p>Blockchains use the JSON-RPC standard for RPC. Data requests are received and processed quickly by this system. JSON-RPC is a stateless, lightweight protocol for remote procedure calls (RPCs). Several data structures are defined in this protocol, along with rules for their processing. It is transport agnostic in that the concepts can be used within the same process, over sockets, over HTTP, or in various message-passing environments.</p><p>P2P is happy to provide assistance in deploying or maintaining your Web3 infrastructure. We will help you find the best configuration for your RPC nodes and address any infrastructure needs you may have. You'll get the benefits of a dedicated node without the headache of managing your own machine. Ideal for Dex's Financial services and dApps.<br><br>Contact us at <a href="mailto:[email protected]" rel="noopener noreferrer">[email protected]</a><br></p>
from p2p validator
<!--kg-card-begin: markdown--><h3 id="table-of-contents">Table of Contents</h3> <ul> <li><a href="#T1"><span style=" font-size:16px"> What is Ethereum (ETH) Staking? </span></a></li> <li><a href="#T2"><span style=" font-size:16px"> Why stake Ethereum (ETH) with P2P? </span></a></li> <li><a href="#T3"><span style=" font-size:16px"> What does the Ethereum (ETH) staking process look like?<br> </span></a></li> <li><a href="#T4"><span style=" font-size:16px"> Ethereum (ETH) staking guide </span></a></li> <li><a href="#T5"><span style=" font-size:16px"> P2P Ethereum (ETH) Staking FAQ </span></a></li> </ul> <h2 id="what-is-ethereum-eth-staking-a-namet1a">What is Ethereum (ETH) Staking? <a name="T1"></a></h2> <p>When staking Ethereum (ETH) we are supporting the network with the additional benefit of earning additional ETH! Ethereum uses “Proof-of-stake” (PoS) as a consensus mechanism, where validators are responsible for reaching a consensus on adding new transaction blocks to the blockchain.</p> <p>To stake Ethereum we need a minimum of 32 ETH. This is because each validator requires 32 ETH to set up and for this same reason staking can only be done in increments of 32 ETH. For example, someone holding 320 ETH will have to set up 10 different validators. Anyone can take part in this consensus mechanism, all we have to do is run a validator (or ask to run it staking-as-a-service provider like P2P.org) and deposit 32 ETH to a special smart contract to activate a validator. This act is called staking.</p> <h2 id="why-stake-ethereum-eth-with-p2p-a-namet2a">Why stake Ethereum (ETH) with P2P? <a name="T2"></a></h2> <p>P2P has been running Ethereum validators since the launch of the Beacon Chain, in December 2020 as part of Lido Validator set. We take care of all the server maintenance and set-up.</p> <p>P2P's Ethereum staking solution is completely non-custodial and each validator is personally set up so there is never any comingling of customer's funds throughout the process.</p> <p>Those that choose to stake with P2P can also benefit from our insurance coverage against slashing events.</p> <p>In short, the benefits are:</p> <ul> <li>High performance and uptime</li> <li>Slashing insurance</li> <li>Personal staking dashboard</li> <li>Secure non-custodial staking</li> <li>Experienced DevOps team</li> <li>Part of the LIDO validator core set since inception</li> <li>24/7 monitoring of machine and protocol metrics</li> </ul> <h2 id="what-does-the-ethereum-eth-staking-process-look-like-a-namet3a">What does the Ethereum (ETH) staking process look like? <a name="T3"></a></h2> <p>To set up a validator we first need the following information:</p> <ol> <li>Specify the amount of stake - 1 validator per 32 ETH;</li> <li>The withdrawal address.</li> </ol> <p>Please note that once set, the withdrawal address cannot be changed. A different address can also be specified to receive rewards.</p> <p>Following the reception of this information, the validators are set up and a link to the deposit page will be sent out. This process can take up to 24 hours.</p> <p>Once the staking deposit is sent, the validator will be created via our <a href="https://github.com/mixbytes/audits_public/tree/master/P2P.org?ref=p2p.org">audited immutable smart contract</a>. After a period of 16 to 24 hours, the validators will become active and start earning rewards.</p> <p>Ethereum staking rewards are divided into 2 parts. Around 30% of the rewards can be withdrawn and are paid on a monthly basis while the rest is locked and can only be withdrawn after the Shanghai upgrade coming in 2023. Please note that this lock on rewards is not imposed by P2P but is a current feature of the Ethereum network.</p> <p>Once the validators are up and running P2P will set up and email each staker a personalized dashboard that can be used to track rewards and validator metrics.</p> <h2 id="ethereum-eth-staking-guide-a-namet4a">Ethereum (ETH) staking guide <a name="T4"></a></h2> <ol> <li>To start staking go to <a href="https://ethereum-staking.p2p.org/?ref=p2p.org">ethereum-staking.p2p.org</a> and click Stake now.</li> </ol> <p align="center"> <img src="https://p2p.org/economy/content/images/2023/01/Captura-de-ecr--2023-01-25-163236.png" alt="ETH staking"> </p> <ol start="2"> <li> <p>A new window will pop up and we can set how much ETH we want to stake and optionally a different withdrawal address. It's important to keep in mind that once the withdrawal address is set it can't be changed.</p> <p>Here we can also set up an alternative wallet to receive MEV rewards. MEV rewards constitute around 30% of the APR and are paid on a monthly basis.</p> </li> </ol> <p align="center"> <img src="https://p2p.org/economy/content/images/2023/01/Manual-stake---2-1.jpg"> </p> <ol start="3"> <li> <p>Once everything is set up, we can press continue and we will be taken to a confirmation screen. Here we have one last chance to change the withdrawal and the MEV reward address.</p> <p>After reading and accepting the Ethereum Staking Terms and the Privacy policy we can continue.</p> </li> </ol> <p align="center"> <img src="https://p2p.org/economy/content/images/2023/01/3.1.png" alt="ETH staking confirmation"> </p> <ol start="4"> <li>A confirmation screen will pop up requesting that we check our email inbox to verify our email address. The reason why an email address is required is so that P2P can send out the URL to the staking page once the validator is set up.</li> </ol> <p align="center"> <img src="https://p2p.org/economy/content/images/2023/01/4.png" alt="ETH staking confirmation"> </p> <ol start="5"> <li>Once the email address is verified the process of setting up a validator will begin. This process can take from 1 to 24 hours.</li> </ol> <p align="center"> <img src="https://p2p.org/economy/content/images/2023/01/5.png" alt="ETH staking cverify"> </p> <ol start="6"> <li> <p>After the validators are set we will receive a link to resume the staking process (this email should come from a @p2p.org domain). The next and final step is to deposit the ETH into the validators. To proceed click "Send deposits".</p> <p>For clarification, the ETH is being deposited to the validators via a smart contract. This is the Ethereum equivalent of staking and is necessary to activate the validators.</p> </li> </ol> <p align="center"> <img src="https://p2p.org/economy/content/images/2023/01/Aptos-letter-1.jpg" alt="ETH staking cverify"> </p> <ol start="7"> <li> <p>Next, we need to connect our Ethereum wallet.</p> <p>This will be our personal staking page with a prepared staking transaction. What does it mean?</p> </li> </ol> <ul> <li> <p>P2P has set up the validators</p> </li> <li> <p>P2P has prepared a special deposit data file that contains information about the validators' addresses where the ETH will be deposited and the withdrawal address we have set up previously, to unstake in the future.</p> <p>All of this information is available in the Deposit data file.</p> </li> </ul> <p align="center"> <img src="https://p2p.org/economy/content/images/2023/01/2.jpg" alt="ETH staking cverify"> </p> <ol start="8"> <li> <p>We can stake with a Metamask or a Ledger wallet. There is currently no direct support for Trezor devices. We can stake with a Trezor wallet by first connecting it to a Metamask wallet.</p> <p>Other wallets are also available but the process is more complicated. To use a different wallet please contact P2P via <a href="https://t.me/P2Pstaking?ref=p2p.org">Telegram</a>.</p> </li> </ol> <p align="center"> <img src="https://p2p.org/economy/content/images/2023/01/3.jpg" alt="ETH staking cverify"> </p> <ol start="9"> <li> <p>After connecting the wallet we can set the gas price for our ETH transaction. When staking conventionally each validator would require an individual transaction but with a smart contract, we can stake up to 100 validators with a single transaction. This greatly reduces the cost of staking and the chance of human error.</p> <p>Before signing the transaction we should once again check:</p> </li> </ol> <ul> <li>That the withdrawal address is set up correctly;</li> <li>If the recipient address in the transaction matches P2P's deposit smart contract.</li> </ul> <p align="center"> <img src="https://p2p.org/economy/content/images/2023/01/5-1.jpg" alt="ETH staking cverify"> </p> <ol start="10"> <li>After we set the fee we just need to sign the transaction and wait for it to be processed. Once the transaction is processed we are all done. It can take from 16 to 24 hours for the validators to become active. Once they are in the active set you will get access to a personal dashboard with information about your validator metrics.</li> </ol> <p align="center"> <img src="https://p2p.org/economy/content/images/2023/01/8.jpg" alt="ETH staking cverify"> </p> <p>Those that stake Ethereum with P2P are encouraged to join a personal Telegram chat with some members of our team.</p> <p>To note that while MEV rewards are paid on a monthly basis, 1 Validator only produces on average one block every 62 days. Those staking with only 1 validator should expect their first reward after 2 months. The more validators are staked, the sooner it will happen.</p> <h2 id="p2p-ethereum-eth-staking-faq-a-namet5a">P2P Ethereum (ETH) Staking FAQ <a name="T5"></a></h2> <h3 id="do-i-need-to-pass-kyc-to-stake-eth">Do I need to pass KYC to stake ETH?</h3> <p>No, when working with P2P, there is no need to go through KYC because staked assets never touch our account and are sent directly to the Ethereum network.</p> <h3 id="what-is-the-minimum-amount-of-ethereum-required-to-stake">What is the minimum amount of Ethereum required to stake?</h3> <p>No Ethereum is necessary to run a node. However, it is necessary to stake 32 ETH x [amount of validators] to activate the validators and start getting rewards.</p> <h3 id="what-is-a-withdrawal-address-and-who-owns-it">What is a withdrawal address, and who owns it?</h3> <p>The withdrawal address is the Ethereum address used to unstake and receive rewards. This address is specified once and it can't be changed after the staking deposit is sent, because the network cements the association of a particular validator and withdrawal address. Access to the private key for this withdrawal address is required to unstake (seed phrase). It is also important to note that P2P is not a custodian and has no exposure to the client’s withdrawal private key. P2P will never ask, under any circumstance, at any time for access to the withdrawal key.</p> <h3 id="what-is-a-validator-key-and-who-owns-it">What is a validator key, and who owns it?</h3> <p>A validator key is a private key for maintaining the validator’s work (setting up validators, updating software etc.). P2P owns the validator keys and guarantees the highest standards for protecting these keys from being compromised, breached, or otherwise misused. This is accomplished through Threshold signatures, which are the gold standard for internal/external security threats. This solution is used by leading custodians, crypto banks, and Multi-Party Computation solutions.</p> <h3 id="why-use-smart-contracts-to-stake-eth">Why use smart contracts to stake ETH?</h3> <p>By design, ETH staking requires one staking transaction per 32 ETH. By using smart contracts we significantly simplify staking, reduce the cost of staking and minimize the risk of any human error. Thanks to our <a href="https://github.com/mixbytes/audits_public/tree/master/P2P.org?ref=p2p.org">audited</a> smart contracts it is possible to activate up to 100 validators with a single transaction.</p> <h3 id="can-i-stake-ethereum-with-a-hardware-wallet">Can I stake Ethereum with a hardware wallet?</h3> <p>Yes, it is possible to stake ETH with a Ledger (via native connection) or a Trezor wallet (via Metamask).</p> <h3 id="how-do-i-earn-rewards-from-staking-ethereum">How do I earn rewards from staking Ethereum?</h3> <p>Ethereum rewards are comprised of 2 parts associated with performing validation duties and block creation.</p> <ol> <li>Validation rewards are taken by performing the validator’s duties as an attestation for a block created by another validator, attestation for a block in sync committee and for creating a block. Validation rewards are accrued every 6.4 min and account for around 70% of the total rewards. Currently, these rewards aren’t withdrawable until the Shanghai upgrade. Following Shanghai, it will be possible to:</li> </ol> <ul> <li>Fully withdraw all the staked ETH + rewards and deactivate the validator;</li> <li>Partially withdraw all the Ethereum over 32 to the withdrawal address periodically.</li> </ul> <ol start="2"> <li>Block rewards (priority transaction fees + an additional fee from MEV) are accrued with block creation as a payment from transactions to the validator for including them in the block. It appears once every 62 days on average and accounts for around 30% of the total reward. MEV-boost isn’t a separate type of reward but is a technique used to build a block that will yield the maximum fee. Transaction fees accumulate on a p2p smart contract which is then automatically delivered to the client on a monthly basis after the P2P service fee has been deducted.</li> </ol> <h3 id="can-i-still-use-my-staked-ethereum-while-it-is-staked">Can I still use my staked Ethereum while it is staked?</h3> <p>No, the staked ETH is locked in the Ethereum smart contract and cannot be used.</p> <h3 id="how-does-p2p-take-its-service-fee">How does P2P take its service fee?</h3> <p>P2P takes its service fee from the execution layer rewards. By default, a special immutable smart contract is used to automatically split rewards between the user and P2P by the previously agreed rules. Other invoicing strategies can be employed by prior agreement.</p> <h3 id="how-do-i-unstake-my-ethereum">How do I unstake my Ethereum?</h3> <p>Unstaking will be available after the Shanghai upgrade, which is planned for March 2023. The ustaking time is projected to be 2-3 days depending on the number of validators that want to exit. This process consists of four steps:</p> <ol> <li>There will be an unstaking page, where it is possible to authorize the unstaking process with the withdrawal address via the click of a button.</li> <li>P2P sends the validator a voluntary exit message to the Ethereum network, and your validators move into the exit queue. The validator then ceases participating in block attestation and creation (and stops getting rewards). The exit can take from 16 to 24 hours, but right after Shanghai, this queue may be much longer.</li> <li>After exit, the validator waits 27 hours as the network wants to ensure that it hasn't been slashed.</li> <li>Finally, the validator is moved into the second and final queue. This time, the validator is totally deleted from the network and returns its ETH with consensus layer rewards. This process can take from 16 to 24 hours.</li> </ol> <h3 id="how-does-slashing-work-in-ethereum">How does slashing work in Ethereum?</h3> <p>Slashing punishes validators for actions that are very difficult to do accidentally, and it’s very likely a sign of malicious intent. It’s a really rare event: there's only been 5 slashed validators within the whole network over the last month (or 0.001%). <a href="https://beaconcha.in/validators/slashings?ref=p2p.org">beaconcha.in/validators/slashings</a></p> <p>What is “slashable” behaviour? In a nutshell, it’s a violation of consensus rules in the network. As of right now, it needs to meet three conditions: proposal of two conflicting blocks at the same time, double vote attestation and surround attestation. This can happen due to either an intentional malicious action or misconfiguration of the validator (the most often being, running two of the same validators in the network).</p> <p>Slashing results in burning 1,0 ETH at once, and removing the validator from the network forever, which takes 36 days. During this time, the validator continues to work but can no longer participate in validation and block creation, getting a penalty of around 0.1 ETH in total.</p> <p>For the most part that's the sum of the penalty incurred, but there is also an additional midpoint (Day 18) penalty that scales with the number of slashed validators. This is called "correlation penalty” and it's currently only theoretical and has never been encountered on the Ethereum mainnet. This mechanism is there to protect the network from large attacks. The math for calculation penalty is pretty complicated, but the summary is if there are only 1, 100, or even 1000 slashed validators within 36 days the penalty will equal zero ETH. However, if the number of slashed validators increases to roughly 1.1% of all validators (currently 5.1k), this penalty becomes 1 ETH and an additional 1 ETH for every additional 1.1% validator slashed. So if 1/3 of the network is slashed, the penalty will nullify the whole stake (32 ETH). This mechanism is in place to prevent an attack on the network and it should never be triggered by accident.</p> <h3 id="how-can-slashing-be-prevented">How can slashing be prevented?</h3> <p>There are special mechanisms in place to prevent validators from meeting the slashing conditions called <a href="https://medium.com/prysmatic-labs/eth2-slashing-prevention-tips-f6faa5025f50?ref=p2p.org">slashing protection</a>. These mechanisms usually consist of a database with a signing history which the validator uses to check if the block can be signed (coupled with the default levels of monitoring and alerting protection). Additional protection levels will depend on the validator’s setup. P2P uses double-checking with a separate database at the key-manager stage and secures validators' key’s by Threshold, which means that no single person, even a P2P engineer, can run a second validator and a quorum is required for that. The final level of protection we have in place is an institutional grade slashing insurance.</p> <h3 id="how-can-staking-activity-be-tracked">How can staking activity be tracked?</h3> <p>Anyone who stakes with P2P gets access to a personal staking dashboard that can be used to track rewards and the validators' performance (APR, staking balance, % of blocks created with MEV, attestation rate, missed block, market comparisons, etc.)</p> <h3 id="in-what-geographic-location-is-p2ps-validator-infrastructure-running">In what geographic location is P2P's validator infrastructure running?</h3> <p>P2P direct staking infrastructure is located in Europe and distributed among 5 separate physical locations for protection from downtime.</p> <h3 id="how-does-p2p-protect-its-validators-from-widespread-outages">How does P2P protect its validators from widespread outages?</h3> <p>P2P validators have no single point of failure and are downtime resistant with back-ups of all critical infrastructure parts between 5 different physical locations, including:</p> <ol> <li> <p>Signing infrastructure - 3 location-independent key managers with 2-of-3 threshold quorum required for consensus;</p> </li> <li> <p>Validators Nodes - we have a reserve in a secure region ready to be activated within a maximum of 1 minute in case of an outage;</p> </li> <li> <p>Consensus layer nodes - our setup has top-3 consensus layer clients (Lighthouse, Prysm, Teku) simultaneously for diversity and preventing outrages related to soft bugs in one client. It also increases availability for validators.</p> </li> </ol> <!--kg-card-end: markdown-->
from p2p validator
<h3 id="intro">Intro</h3><p>Everyone is always looking for ways to improve their finances and we often hear that staking in crypto can't be profitable and stable during the bear market. At P2P we think that it depends on how effectively your staking provider uses the infrastructure.</p><p>Today we want to share the story of how we became a successful Node operator (NOP) on Chainlink by continuously improving our performance metrics. We will also talk about Chainlink’s oracle network, its current state and how NOPs can get a stable revenue even during a bear market.</p><h3 id="what-is-chainlink-oracle-network">What is Chainlink oracle network?</h3><p>Chainlink is the market-leading decentralised oracle network providing real-world data to smart contracts on any blockchain. Currently, Chainlink supplies data for DeFi consumers across 14 networks:</p><ol><li>Ethereum: Mainnet, Goerli, Kovan, Rinkeby, Ropsten</li><li>Avalanche</li><li>Binance SM</li><li>Optimism</li><li>Arbitrum</li><li>Fantom</li><li>Harmony</li><li>Moonriver</li><li>Moonbeam</li><li>Metis</li><li>Heco</li><li>Polygon</li><li>xDai</li><li>Solana</li></ol><p>Ethereum registered the highest number of working oracles during 2022.</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/ko4Q_PCIn7OB4WTIL_bSQUuTWml5S6uWUMEHHijYiDy1_dbXi3DoPdJVMkniYsriQkhfi1q0yMXC8thIjeyzN65kJNdpAiYg6pYSD-J3gWQ4jXaXwbsQQkGmRCBK9--8P5bep1glXSRkXTebpjAvkOi8GbUphwfEi5NbSyYhMzTXyE03q4G4tfHlU5EqNA" class="kg-image" alt loading="lazy" width="602" height="215"></figure><p>Within each network, oracles can provide different types of data:</p><ul><li>price rates between two tokens, NFTs, etc. (data about the price relation between 2 tokens is called data feeds);</li><li>automation services;</li><li>direct requests from consumers (when somebody directly requests data from Chainlink protocol);</li><li>A verifiable source of randomness for smart contract developers (VFR).</li></ul><p>P2P currently provides more than 2000 unique data feeds on different chains. While most of these data feeds are shared across multiple chains, some of them are unique to a specific chain, for example, the METIS-USD data feed is present only in the Metis network. Here’s the distribution of data feeds per network:</p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/PoRy4aBEV2Y-nutW0NLkgLF6UdD4HxMGBCuoutrrYMIdt9D4NwKX45YCzCbcf1M7jceBnnyZOsYGDmftMiFcas8jNjbd6wJVzrXeHb33RqCKXnHbC0flxRZca43_La6oR07sUNTkfROSm0yuEFQ7GRzZnZilZQeJRtpLxBO-kmALFji7vdI2qanxcyQVjw" class="kg-image" alt loading="lazy" width="602" height="216"></figure><p>These data feeds are distributed between node operators in every blockchain. This is the first side of Chainlink’s decentralisation.</p><p>A few technical details:</p><p><em>Oracles generate reports for data feeds continuously by sending requests to data providers (APIs) and aggregating them (median). Every time consumers need data, Chainlink asks one of the oracles, that is assigned to that data feed, to write that data to the blockchain. The session data recording is called the Round and the chosen oracle is called the Leader of the Round. The Leader gets data from other oracles (who are also assigned to this data feed), calculates the median value and writes it to the blockchain. If for any reason the Leader couldn’t do it - the next oracle becomes the Leader and has to do it.</em></p><p><br>It is not enough to just attract a large number of oracles, it is also important to ensure that the oracle’s data is decentralised. This is achieved by using different data sources for different oracles.</p><p>For example, the price feed for ETH-USD in Fantom is distributed between oracles and data sources (APIs) as follows:</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/n5ZNZNryhyK1tldaIwlR_iMB7yL8nm-g7hifNVL9uHp2r1DYPanLa2RrQnP4ESaFGmoelpxr_7KAOEjq8qsh5AgpD7w5mo70xFRBEY_LYP712JBbyXetp02hrTDVzfP9gtLdCzKPL1_Y6qC8KocEspigEkxMwlZSGfGbi4oGnuwMmkSuLWKmvZClfHfZag" class="kg-image" alt loading="lazy" width="581" height="503"></figure><p><em>Note: A 1 means that an oracle gets the data from the API, 0 means that the oracle doesn’t get it from that source</em></p><p>The degree of decentralisation can vary as it depends on the number of data sources that provide the price data and the number of oracles. We only need the fact that different oracles send requests to different API services to proceed with the data when Chainlink needs it for understanding Chainlink’s decentralisation.</p><h3 id="p2p-chainlink">P2P & Chainlink</h3><p>P2P joined the Chainlink oracles network in 2018. We first started as a NOP in Ethereum on several data feeds and we haven't stopped growing since that time. Today we are present in 6 networks and we provide data for more than 150 feeds.</p><p>This level of growth was a serious challenge for us as a company. Looking back it seems that it would be impossible to become a successful Node operator without a data-driven approach. Luckily, in 2020 we had already understood that we needed to collect and analyse data about NOPs’ performance in Chainlink. In this article we will walk you through our path and go through it from the beginning.</p><p>We provide 4 steps for a successful data-driven approach to node management:</p><ol><li>Define key metrics. You can’t control anything without measuring it, but first, you need to understand what you want to measure.</li><li>Extract all the necessary data. It seems obvious but we had to work hard to collect all the data from different networks, make indexers and transform it so that they are usable for analytical purposes.</li><li>Determine who is a good node operator. When you’ve collected all the metrics you should understand what you can do with them: what is under your control and what is not. You need to also keep in mind Chainlink's main mission - to provide accurate off-chain data to the blockchains.</li><li>Decision making. Develop analytic tools to transform the data into knowledge that can be used in decision-making.<br></li></ol><p>Let's start with the first step.</p><h3 id="key-metrics">Key metrics</h3><p>The main purpose of the Chainlink protocol is to provide data for users. As we have previously mentioned, “Round” is the act of writing data to the blockchain by an Oracle.</p><p>Here are the number of rounds for the Ethereum mainnet in 2022.</p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/xapxQXV-nkH28gGuqnyC0DxlXRTfWntVZM5B92D8Jm7BX24Z9Cgsb1Kfw8uSVc5I_PBZjhN2dD9TUNSOWWmhYeWFi-A2_M4n5Xb_5ienucAcJVKrtfkk_HfxnDZsMc2cvpJCNDTL-WGU05i7HB43RIA3lQRK0kP3txlaF5MqLbh4K-j2DWs9lZbqQ1PlAQ" class="kg-image" alt loading="lazy" width="602" height="193"></figure><p>This is how we compare the consumption of Chainlink’s data by different chains (for example Avalanche, Fantom, Harmony, Moonriver and Ethereum). You can notice there is a peak in the number of rounds in May (Terra collapse), June (Celsius) and November (FTT/FTX collapse). This is true for every chain:</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/b9ZreTaBRX5kUef45SkDBOFsJrgXmwmKrFcwf_5CBdvwPxtMgHP2JieX4xHVAE3tQhSidDFG_FAMFptn2bRnkYHHCOs5VCGfQ6mdy3DRoKSksgKgYtRSW1IRFkZLr-tao1SwaHza-r--sieVqQlFjWZ1LaLPahSdolAlAqulYP7Hvj6fVrGqsTCWVsod7g" class="kg-image" alt loading="lazy" width="602" height="180"></figure><p>We can track the number of rounds to measure the consumption of data supported by Chainlink for any chain/feed/oracle. For example here is the number of rounds for ETH-USD (dark blue), FTT-USD (green) and ATOM-USD (bright blue) on Ethereum’s mainnet:</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/5vGOUEiQeURrCyua2Imyq5boZ6GjD4MAVmH_4eh_dDld3pY3IZOH2Y8jDWHKbMV8RX7gNCexad_poWtHYVGGTDwCW7VO-eSPJVBI142XoaF_MNzsrcxaxVo3ZL8iG2h_jVSfpq8RAvtOcG5QUkgPoLzb1dLm5GQO3KL8C_OFXHO5UkTEPr9LGJOPyaOLFQ" class="kg-image" alt loading="lazy" width="602" height="175"></figure><ul><li>There are a lot of spikes for the ETH-USD data feed. During our monitoring of Chainlink's activity, we see that every significant crypto event increases the demand for ETH data feeds. It is probably connected with the need to swap every token to Ethereum either because it seems like one of the most securable assets or because it has the best liquidity;</li><li>Cosmos ATOM saw a growing demand for price data in the middle of May (we link this with the Terra collapse) and not a so significant peak in November;</li><li>With FTT we see the opposite. The number of rounds was lower during May ‘22 and much bigger in November ‘22 during the FTX scandal.</li></ul><p>It is not enough to just provide data, our purpose in Chainlink as a NOP is to provide accurate data. For that, we need an estimation of the quality of the data that is calculated based on the oracles’ answers every round. We call this “Deviation”. It is calculated by comparing a particular oracle’s answer for that Round to the Round’s final value (the median of each oracle's answer). This way, we can track the variance of each oracle every Round. This can also be used to calculate the average value of each oracle’s deviation. Here is how we can compare the data quality for different chains:</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/GIGrmSCocpuw1HYcBG5nb325HI2kPQO1-BkkeSN2gjrleMZckC3fBt69FhJuy6HbxZS22QVeJ9DD-laJ35WcSKhDznJJIctF4_8ndu9QIaUBvkhHpWoyWaXiSBDknbLtym6aU7Zeb2F9tCBkA8dBcCRTYmjMCN1ani9Tt1Xx9FO31mTpgzZaPyLiXXVhNw" class="kg-image" alt loading="lazy" width="602" height="172"></figure><p>It is important to mention that the most popular deviation threshold for data feed defined by Chainlink is 0.5%. There are a lot of feeds with even a 5% deviation threshold.</p><p>It is also interesting to compare the performance of different NOPs by their ability to write Chainlink data on-chain. We use the Transaction success rate (TSR) for this. This is the ratio of the number of successful transactions to the number of unsuccessful transactions.</p><p><strong>Data extraction</strong></p><p>This is not the main subject of the current article. We plan to talk about this a bit more in a future post. Today we will only mention the main architecture of the ETL (Extract, transform, load steps of data uploading pipeline) process:</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/k8IpSUldKoj2x3RDdjVRlY01TlVaKtvARTFciBmqkGLOwOMNo-CSVCyvdQimOTzaB0mhL_cFC7J_RQlpfVH-uWARBeUkrmIjg0xL9LxHj2_eHSesRQ_WnxwSgMYSBIwp_L9P6S0vL3UYZV1sYMyGHdjh0JMuwTJrnzmTMXG2jKX1ejnl8TLdegIMCMhVOw" class="kg-image" alt loading="lazy" width="602" height="189"></figure><p>The first 3 sources are:</p><ol><li>On-chain data</li><li>Chainlink <a href="https://github.com/smartcontractkit/reference-data-directory?ref=p2p.org">repo</a></li><li>TheGraph: our subgraphs are available here:</li></ol><ul><li><a href="https://thegraph.com/explorer/subgraphs/53PbnKoeHChwYvh7rKJES7sdRbwtutszWyTbrrSyib7Y?view=Overview&ref=p2p.org">Chainlink on Ethereum</a></li><li><a href="https://thegraph.com/hosted-service/subgraph/vkuzenkov/chainlink-fantom-mainnet?ref=p2p.org">Chainlink on Fantom</a></li></ul><p>Stay tuned if you want to know more about data and indexation in the future.</p><h3 id="who-is-a-good-node-operator">Who is a good node operator?</h3><p>Every NOP is a company first. The main target of every business is to be profitable. Let’s look deeper into Node operator economics.</p><p>Oracles get rewarded in LINK for every report to the blockchain, regardless of who was the Leader of the round. The Leader gets additional rewards for writing data to the blockchain.</p><p>The main expenses of an Oracle are gas costs, infrastructure costs and human resources. Oracles should pay the gas cost to write data to the blockchain when it was chosen as Leader of the Round.</p><p>We can track rewards and gas costs to estimate the revenue of the oracle's performance. Here is Chainlink on Ethereum financial metrics:</p><figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/G-e8bKxh3uuB8r4xRLS8LBfnRh7EVqJFcSvpnsDm2nuoKSbnxBhrbhZyCZ5tvRYHQ26aoNgGkuHiNNgM-ky_mOqTIGTIiNknQfbEEbv5aOAxgw8WhRm5e3kKi2TcEBXrDm4f4jVK7MZRlhw53KwkDpMbV4rtLpahFZ-bURQ1CNs3zSKMswSftu4JBm9lig" class="kg-image" alt loading="lazy" width="602" height="265"></figure><p>So the total net revenue for all of the oracles in Ethereum is 37.3 mil $ during this year.</p><p>Now we know the Chainlink mechanics. We also know that a Bear market in Crypto leads to smaller amounts of revenue for every project. But 2022 has also brought us a lot of activity from scandals involving multiple projects: Terra, Celsius, FTT and so on. What if we want to understand how stable an oracle’s revenue can be during an unusual event ? We will definitely want to know what the gas spending value was and how many rewards the oracles got. It will also be great to see deviations to understand the consensus about price data between oracles.</p><p>Let’s see what was happening with an oracle's net revenue during 2022 across 6 networks: Ethereum, Solana, Fantom, Moonriver, Harmony and Avalanche:</p><figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/lDoax59JiicEyvaBGsGERT7XT_v8qT8u1R5K7uHgIdIc7hdd6Y6ijI0j0Efe1om5UTsPyy0qYtVuO021MNS5OVtcjbUl7f4hl96QJcVTMaFnx7u05U2fORFe02Ds3H3PX8iXQ0fRHEm_LmGW0dCDf8Df8lAhIF2icWaQ-khXzAVGWc-7nxqK55XzgCUIgQ" class="kg-image" alt loading="lazy" width="602" height="176"></figure><p>Here's what was happening with revenue during April-may ‘22 to understand how the Terra event influenced Chainlink NOPs:</p><figure class="kg-card kg-gallery-card kg-width-wide"><div class="kg-gallery-container"><div class="kg-gallery-row"><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/1.png" width="516" height="518" loading="lazy" alt></div><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/2.png" width="686" height="598" loading="lazy" alt srcset="https://p2p.org/economy/content/images/size/w600/2022/12/2.png 600w, https://p2p.org/economy/content/images/2022/12/2.png 686w"></div></div></div></figure><p><br>We can see that everything went up: Costs, Rewards and Net Revenue. So during this commotion around Terra, we see a peak in the number of rounds as we mentioned earlier. It led to an increase in network utilisation and higher gas costs. But it also brought more rewards to node operators and higher Net Revenue as a result.</p><p>A slightly different situation was the FTT/FTX collapse. We’ve already seen that there were way more rounds for FTT data feeds. If we dig deeper we can also see that it happened to every asset associated with FTX such as Solana. But what about net revenue?</p><figure class="kg-card kg-gallery-card kg-width-wide"><div class="kg-gallery-container"><div class="kg-gallery-row"><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/3.png" width="694" height="654" loading="lazy" alt srcset="https://p2p.org/economy/content/images/size/w600/2022/12/3.png 600w, https://p2p.org/economy/content/images/2022/12/3.png 694w"></div><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/4.png" width="864" height="640" loading="lazy" alt srcset="https://p2p.org/economy/content/images/size/w600/2022/12/4.png 600w, https://p2p.org/economy/content/images/2022/12/4.png 864w" sizes="(min-width: 720px) 720px"></div><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/5.png" width="684" height="650" loading="lazy" alt srcset="https://p2p.org/economy/content/images/size/w600/2022/12/5.png 600w, https://p2p.org/economy/content/images/2022/12/5.png 684w"></div></div></div></figure><p><br>It was the same during September and October, with no significant differences. But what about P2P:</p><figure class="kg-card kg-gallery-card kg-width-wide"><div class="kg-gallery-container"><div class="kg-gallery-row"><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/6.png" width="584" height="612" loading="lazy" alt></div><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/7.png" width="614" height="626" loading="lazy" alt srcset="https://p2p.org/economy/content/images/size/w600/2022/12/7.png 600w, https://p2p.org/economy/content/images/2022/12/7.png 614w"></div><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/8.png" width="612" height="628" loading="lazy" alt srcset="https://p2p.org/economy/content/images/size/w600/2022/12/8.png 600w, https://p2p.org/economy/content/images/2022/12/8.png 612w"></div></div></div></figure><p>Our revenue hasn't changed much during the last 3 months.</p><p>Besides revenue, every NOP should care about its reputation in the Chainlink network. As we previously mentioned, we track reputation by 2 key metrics:</p><ol><li>Deviation</li><li>TSR</li></ol><p>Here’s the Deviation stat for 5 networks:</p><figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/MFvB1wIPX31q-SczY1-ZRDov9wNrfniYHIBiSpqWMnJvsQJ8F5Hb4YMSHFxdNj9NmC4AAx1d4nR1UCfsvkewZYKSGSE6ICtKeCZZ4Jmms2D6mOvuL9JlZi1vqkA6qH7NqG-113OrPYXxoFiItbyeKfMAlGuoWWZMJ8ydT0AJF6pOK7xiBXI2-QvCaCVvXw" class="kg-image" alt loading="lazy" width="602" height="173"></figure><p>The two red vertical lines mark the Terra and FTT/FTX events.</p><p>It is expected that during a big market event, the consistency of oracles decreases. We can see the huge deviation in Avalanche and Moonriver during the Terra collapse.</p><p>During the FTX event we can observe a deviation, although much smaller when compared to the earlier one:</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/PF1e9w5FoYu1eUCBICXhEepDSJd01b9q-v_V9O7RGT51L1yI5yOCFe3awTjaBpiztMrBZFbLQMT7tyuVbq2lMbH-YClh4fVu42oYM_j_dgPuhYIbcSNM10EwYdPDhVs9FwMliPoEQE9XF4Zmc7IO-XJim4rfQKTkz2ThbBA30IcRAFM_m3PTeMdBTleMlQ" class="kg-image" alt loading="lazy" width="203" height="276"></figure><p>We can also compare oracles based on TSR to estimate how successful oracles are in writing data to the blockchain. For example, here is the TSR for Ethereum’s mainnet:</p><figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/0AwgVfBVVPTzGOmoXWFbqxTtTYMHRlbKgvz_JkoJ83drgBcsidggKMCu6M2F9aJOZol0k7wBM-F_31iPjnRmHVQn1tip5a_Zu8l1652XFfwoAqhV8PvvF1UvcZACIU0OkxaKRkPoI-RHPRtBaarQEa3ruE_ODKGnz3kOpU3ODRIbmsX7nQq8muTMxBczcA" class="kg-image" alt loading="lazy" width="602" height="175"></figure><p>We can observe that during November and for most of 2022, P2P had a TSR ranging between 90-100% in every network except Fantom and Solana (and Moonriver in April). This is because those chains use a different transaction execution mechanism compared to most EVM chains. You can make sure that this is quite a good metric value by comparing us to others.</p><p>Here is the distribution of different NOPs TSR for the Fantom network:</p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/6nvlDCRGlu0CQezWXbVY_Hz9RSnlkKGTHUUVCDiIckYpfRtxrmr0Y0Rz7WoD5EyHXnHUTAVxctbssydK82O-htUsQ980nGcglNVN2Fu93nEDdrv8ZZbIKMkvExrlfLyd5QnfWK0OsimT9zAiBd_McY2VH7fY0GoQ2BhRyWy67_eCmjsnVQDT43ylX9S6Wg" class="kg-image" alt loading="lazy" width="602" height="329"></figure><p><br>We can observe that even at its lowest point P2P was among the top NOPs.</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/rq8zjGR9Gg1DnY7SI840HpM4Nl03jg54-7tr3z6YhJOOh2xXUl1A-qKX7l59hco13rNG8hE4jtCg1BA5-FBQIJC0L6JPbQaS26b5cwQy-55b-UdaOJFufVOkiBP8mNp0qC576tZW2vCPee7ShXW9yeK01QIL-R5qcGcDqFq4k6G6WUH55OLa952T3m4gTA" class="kg-image" alt loading="lazy" width="602" height="333"></figure><p>The median TSR or all Nops on Solana was 6.07% and the median TSR for P2P was 6% for the same period.</p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/2T9H6f4Ovl5_QpOcvm1G7wVaFomZuLOKC3NdWW6T6sUMW0nn8Rz0db0Y7NmXBvsjj-Ouuf3bLyYESj-JGhy8IeZ3U4418pX_CQHUWbm03_qDMnJGVPYcqD7TvRtDzjs0ZOT6vfj0dhh-J2Uej-nqhJpKtaA0TSfIV9wFdlCmxVegFjHz23as4BzCW36FDw" class="kg-image" alt loading="lazy" width="602" height="332"></figure><h3 id="decision-making">Decision making</h3><p>In this section, we will discuss how we solve business problems by using a data-driven approach.</p><p>On August 2021 Ethereum released EIP-1559. A significant aspect of this proposal was how it overhauled the transaction fee system. For P2P it meant that we could now use EIP-1559 to prioritize transactions. We weren’t sure how this would affect the transaction success rate, in other words, did miners have a preference for one type of transaction?</p><p>We’ve decided to run an A/B test. The design was to switch the priority fee algorithm from Standard to 1559 every 15 minutes and set the configuration of both algorithms. As a result, we’ve got the same transaction success rate and significantly different cap fees as can be seen in the picture below:<br></p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/cZyvehzptSVbQyPoD8YDWRJWCzQIE5XZ8cN-X6Sm2vBhqtmTKO9AQg5vyqkRp_MYm1e5Ldop_oqZRRdjRED7zeWDU-WrzBAJIR3kLAy6Ueo64cnnN6hYlS8nX7vnal2Yj0GG8DjXgzJoHTCSp5uftQWhy1tZsHOaZ_krVTE54Fqt2uluZzOXDU9Q0lW3GA" class="kg-image" alt loading="lazy" width="602" height="371"></figure><p><br>This is how data analysis and data-driven approaches are applied in decision-making.</p><h3 id="staking">Staking</h3><p>Chainlink Staking v.0.1 launched on December 6, 2022. During this first version there are two ways to stake Chainlink:</p><ol><li>Community staking: you need to satisfy three <a href="https://blog.chain.link/chainlink-staking-early-access-eligibility-app/?ref=p2p.org">criteria</a> and the APR is around <a href="https://blog.chain.link/chainlink-staking-launch-details/?ref=p2p.org">4.75%</a><br></li><li>Staking through a NOP: when a NOP stakes from 1000 to 50k LINKs as a self-stake. APR is 7%.</li></ol><p>If you want to see the details you can read <a href="https://p2p.org/economy/chainlink-staking">this post</a> in our blog or on Chainlink's official <a href="https://blog.chain.link/how-to-stake-chainlink-link/?ref=p2p.org">website</a>. But as you may see the community staking pool is already full and won’t be expended till v.1.0 (9-12 months):</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/EhIZFEBJ2vh9a7_V1SzfCJZF2-cWSKe12djGu_6WTb1vlaSwJ9Fi5GezBhCJnqoDf_TdoIPi1HVv5CzdIfuLmcg2a0qbI4Qv6tyuaWgdFZe2c_pYU1hyKUfK2X-bS1hnDsMjZPvbWQdpXaY3TO2vQMPNMfoDG9DBj3bo59575bJQvY9DaRUdeLDfLJDKwg" class="kg-image" alt loading="lazy" width="386" height="373"></figure><p><br>That is why we are glad to provide our clients with a custodial solution to get a higher APR through P2P with a 10% fee. Through P2P you need a minimum of 10k LINK and can stake up to 50k LINK.</p><hr><h3 id="about-p2p">About P2P</h3><p>P2P Validator is a world-leading staking provider with the best industry security practices and proven expertise. We provide comprehensive due diligence on digital assets and offer only top-notch staking opportunities. At the time of the latest update, more than 1,5 billion USD is staked with P2P Validator by over 25,000 delegators across 25+ networks.</p><p><br></p><p><br></p><p><br></p><p><br></p><p><br></p><p><br></p><p><br></p>
from p2p validator
<h3 id="the-graph-overview">The Graph overview</h3><p>The Graph is a decentralised protocol for querying and indexing data from blockchains. It is the backbone of major crypto projects like Uniswap, Lido, Livepeer and Decentraland. Basically, any dApp in order to be truly decentralised has to store its data on a distributed database. And The Graph is where dApps can store and collect information in a familiar Web 2.0 fashion but with Web3 security and reliability.</p><p>You can capitalise on major Web3 projects’ successes and failures and earn fees on The Graph platform. The Graph supplies the databases and computing powers to support these projects and this work is done by the <strong>indexers<em>.</em></strong> This work is backed by <strong><em>delegators</em></strong> that stake GRT by delegating it to them. Anyone can become a delegator and get between 9% and 15% APY on their GRT tokens.</p><p>Those looking for a <strong>higher yield and comfortable with higher risks</strong> can consider becoming a <strong>curator</strong>. </p><h3 id="how-to-become-a-curator-and-earn-up-to-30-apr-on-the-graph">How to become a curator and earn up to 30% APR on The Graph</h3><p>A Curators’ job is to identify the most prosperous Web3 projects that use The Graph as their database and <strong>buy their shares</strong>. When a curator holds these shares they get a part of the query fees served by indexers with some of them returning <strong>up to 30% APY</strong>. </p><p>With the new dashboard made by P2P for curators, it has become easier than ever to make data-driven decisions.</p><p><a href="https://reports.p2p.org/superset/dashboard/graph_curation?ref=p2p.org">https://reports.p2p.org/superset/dashboard/graph_curation</a></p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/LWEFh4gxRK4CE8sSXkllZBvzy36YjMQi451EtVbXDWa3eHQR8s8UczlTY6Tbmq5_fJ1oJae4keRPkUWjlb8P_JJfEnjdo6N19XL0KdeABpsAIj1u5rJk4KV8_zE1_rZRcvwvFdenPU9_bAQNkbGsHGrjvABnpwgb8rjVSo5goYyZc4ic6ZUaTBXnc2BwfA" class="kg-image" alt loading="lazy" width="602" height="197"></figure><p>The first tab (subgraphs) is designed to give you data on where the upcoming query fees are going to be higher. </p><p>The creators’ share column would help you identify how many other curators may leave and thus lower your share price, as it is unlikely (but still possible!) for subgraph creators to abandon their own subgraph.</p><p><strong>Query fees (QF)</strong> probability is calculated based on the past 30 days. If there were no queries in the last month, the probability of new queries is close to 0. The percentage takes into account all closed allocations, their size, and duration and estimates the probability of the next query.</p><p><strong>QF APR</strong> is estimated based on the annualised Price per Share changes <strong>in the last 30 days </strong>based on indexers' allocation collect events.</p><p><strong>QF APR If You Signal N GRT</strong> is calculated considering current signals & query fees collected in the last 30 days.</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/fPz7MeZb9VYyYw_iuPEagHOUkDL8YfaTa9lYmumMy2HQ0Uj9Tr87iApkHN2rS1z6WBC28LpmrQO9dvUGWpBNVZ-YO76Z4V3uKPA65sTplIWK_Of07bnIRIPEJv1QdEBWVNGGLj_JMNDdnxyR-k-5qblJEHdGDyMNhpvj4bBJyGbh_5Iafk99X34fyjPU9g" class="kg-image" alt loading="lazy"></figure><h3 id="how-are-query-fees-accrued">How are query fees accrued</h3><p>Everything starts with indexers allocating their GRT to subgraphs. They would allocate their tokens proportionally to the number of signals on the subgraphs. </p><p>In the table below Proportion = Signals / Allocated GRT</p><!--kg-card-begin: html--><p align="center"> <img src="https://p2p.org/economy/content/images/2022/12/image.png"> </p><!--kg-card-end: html--><p>If for example, curators added signals to the UMA subgraph, this would in theory lead to more indexers allocating GRT there. An allocation generates rewards for a period of 28 epochs only (approx. 28 days). After that, the allocation stops generating rewards and indexers have an incentive to close them. They may also close their allocation earlier if the signals on the subgraphs change. You can observe indexers' behaviour towards particular subgraphs in the Selected Subgraphs’ Current Indexers’ Allocations table.</p><figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/A2KQHjzfMubFzSf3ZibEnHuYz0GCsRrsTNU5ygynfA_13tZzoOMiWI9ejdvDeqpfG7rO3u4rXDkeWQdWRBkPcDFdlb16_Oo_Hi4dQskoZRBl_mOJZXj7Qxakft6kF4KjlJ2X26jzZuBSWsllv9WqHq0s3r0VNB8MR9SpZjMKpV2bmuqL1lwDzBOnGLzV9A" class="kg-image" alt loading="lazy" width="602" height="99"></figure><p>Here's how the allocation lifecycle plays out:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2022/12/image-1.png" class="kg-image" alt loading="lazy" width="647" height="133" srcset="https://p2p.org/economy/content/images/size/w600/2022/12/image-1.png 600w, https://p2p.org/economy/content/images/2022/12/image-1.png 647w"></figure><p>Because Indexers have to pay gas for every action sometimes they choose not to collect query fees if the reward doesn't outweigh the cost. They can store those query fees and accumulate them until it is economically viable to claim them. To help you predict whether an indexer will claim query fees, we provide you with the stats for previous allocations. Curators only get their share of query fees after the indexers claim them.</p><h3 id="differences-between-the-share-price-and-the-token-price">Differences between the share price and the token price</h3><p>Query fees are not the primary source of income for curators. Most of the tokens earned come from the <strong><em>shares' price changes</em></strong>.</p><p>The share price is not tied to the project’s token price. For example, changes in the Uniswap token price, UNI, do not correlate with changes in price for its subgraph shares. Some of the projects with a subgraph do not have a token at all, for example, Connext has not released its token yet. You also need to pay attention to the subgraph publisher. For example, Messari has published subgraphs for Uniswap, Lido and other projects, but those subgraphs are not used by Uniswap or Lido, but by Messari.</p><p>With the help of our new tools, you can take a look at how other curators earn GRT on the share price changes. You can try to figure out the tactics that others use to become more profitable by taking a look at their portfolio and the actions they took.</p><h3 id="shares-price-and-bonding-curve">Shares price and bonding curve</h3><p>When signalling onto the subgraph a curator buys shares. The price of a share is pre-determined by the bonding curve and each subsequent share is more expensive. The same logic applies in the opposite direction. If someone sells a share, the share price of each curator on that subgraph drops as the price goes down the bonding curve. This process is well documented in <a href="https://thegraph.com/docs/en/network/curating/?ref=p2p.org">The Graph's official documentation</a>. The primary way to earn rewards in curation is by being among the first to notice the true potential of a subgraph.</p><p>There are a few tactics that can be applied to be successful in this way of earning rewards. One that is very frowned upon by the community is the use of front-running bots that signal on a subgraph as soon as it appears in the network. There are different proposals on how to decrease their impact on the industry. These bots are not as aggressive as in other parts of the crypto ecosystem, so they still leave an opportunity for common investors to earn rewards in the curation market.</p><p>Projects with big names, such as Lido, Messari, and Curve get their signals very quickly as it is assumed that they will generate both hype and query fees that would generate rewards. But keep in mind that anyone can create a subgraph with any name, so it is better to make sure that the subgraph you plan to signal on is the official one. In all the cases mentioned above, a good place to discuss any Curation related questions is the official <a href="https://discord.com/invite/vtvv7FP?ref=p2p.org">discord channel</a>.</p><p>We hope our new tool helps you in your curation process decision-making, or if it is the case, it helps you get started. We are always happy to hear your feedback on the work we are doing, so do not hesitate to reach out, and make suggestions on how we can make The Graph even better.</p><p>Check out the tool below.</p><figure class="kg-card kg-bookmark-card"><a class="kg-bookmark-container" href="https://reports.p2p.org/superset/dashboard/graph_curation/?ref=p2p.org"><div class="kg-bookmark-content"><div class="kg-bookmark-title">Superset</div><div class="kg-bookmark-description"></div><div class="kg-bookmark-metadata"><img class="kg-bookmark-icon" src="https://reports.p2p.org/static/assets/images/favicon.png" alt></div></div><div class="kg-bookmark-thumbnail"><img src="https://reports.p2p.org/static/assets/images/loading.gif" alt></div></a></figure><hr><h2 id="about-p2p-validator"><strong>About P2P Validator</strong></h2><p><a href="https://p2p.org/?utm_source=blog&utm_medium=economy&utm_campaign=cosmos_fee">P2P Validator</a> is a world-leading non-custodial staking provider with the best industry practices and proven expertise. At the time of publishing, P2P Validator is trusted with over $1B in staked assets by over 30,000 delegators across 40+ networks.</p>
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