A Step-by-Step to BABY Staking with Keplr Wallet

<p><em>Expanding our validator services to support the&nbsp;Babylon network and enhancing Bitcoin staking options.&nbsp;</em></p><h2 id="a-new-chapter-in-bitcoin-staking"><strong>A New Chapter in Bitcoin Staking</strong></h2><p>P2P.org is excited to launch validator support for BABY staking on the Babylon Genesis network. As one of the leading validator providers in web3, we’re proud to expand our services for this exciting network that brings new utility to institutional Bitcoin holders.</p><p>Babylon Genesis is the first Bitcoin-secured network, leveraging Babylon Bitcoin staking to derive crypto-economic security without altering Bitcoin’s proof-of-work consensus. As a standalone Layer 1, it also acts as a control plane and liquidity hub for other Bitcoin-Secured Networks (BSNs), enabling seamless integration with Bitcoin’s security and liquidity.</p><p>The launch of our enterprise-grade BABY validator marks a significant milestone in our commitment to advancing Bitcoin’s role in the proof-of-stake ecosystem. Our infrastructure is fully optimized to support the Babylon Genesis chain, delivering robust security, high availability, and competitive rewards for BABY token holders.</p><p>Institutions and individual stakers alike can now participate in securing Babylon Genesis by delegating BABY tokens and earning rewards, backed by P2P.org’s proven track record, slashing protection, and institutional-grade support.</p><h2 id="what-is-babylon"><strong>What is Babylon?</strong></h2><p>Babylon is an innovative protocol that connects Bitcoin with the broader proof-of-stake ecosystem, enabling secure Bitcoin staking without modifying the Bitcoin blockchain. Its unique architecture is built around two core products:</p><p>Babylon Bitcoin Staking Protocol:<br>This product allows Bitcoin holders to stake their BTC and delegate it to Finality Providers, who provide cryptographic security for emerging Bitcoin-Secured Networks (BSNs). The protocol preserves Bitcoin’s decentralization and security while enabling yield generation. Bitcoin stakers can earn tokens from BSNs—such as BABY tokens—as rewards for securing these networks.</p><p>Babylon Genesis:<br>The first Bitcoin-Secured Network that leverages the security of Babylon’s Finality Providers. As a standalone Layer 1, Genesis inherits Bitcoin-aligned security and acts as a control plane and liquidity hub for future BSNs. In addition to BTC staking, users can also stake BABY tokens and receive BABY staking rewards in return for supporting the network’s security and operations.</p><p>Together, these components form the foundation of a groundbreaking Bitcoin staking ecosystem, bringing new utility to Bitcoin in the proof-of-stake world.</p><h3 id="babylon-phase-2the-three-facets-of-the-babylon-genesis-network"><strong>Babylon Phase 2 - The Three Facets of the Babylon Genesis Network</strong></h3><p>Babylon Genesis is a multi-faceted blockchain, and we will explore it from three perspectives:</p><ol><li>A Bitcoin-secured Layer 1 which uses cutting-edge technologies such as Bitcoin staking and Bitcoin timestamping to leverage Bitcoin security;</li><li>A control plane that coordinates the other BSNs with Bitcoin so that they can efficiently receive Bitcoin security and liquidity with minimal integration efforts;</li><li>A liquidity hub that manages Bitcoin liquidity through on-chain applications that are secured by Babylon Genesis</li></ol><p>You can find more details on Babylon Phase 2 <a href="https://babylonlabs.io/blog/the-three-facets-of-babylon-genesis?ref=p2p.org"><u>here</u></a>.&nbsp;</p><h2 id="the-baby-token-powering-the-babylon-ecosystem"><strong>The BABY Token: Powering the Babylon Ecosystem</strong></h2><p>The native BABY token is the cornerstone of the Babylon Genesis network, carefully designed to create a sustainable economic model that aligns incentives across all participants in the ecosystem.</p><h3 id="baby-token-utility-and-economics"><strong>BABY Token Utility and Economics</strong></h3><ul><li><strong>Governance Rights</strong>: BABY token holders directly influence the protocol's future development, parameter changes, and treasury allocation through on-chain governance voting.</li><li><strong>Staking Rewards</strong>: By staking BABY tokens, holders earn rewards from network transaction fees and protocol inflation.</li><li><strong>Security Mechanism</strong>: Staked BABY tokens serve as the security backbone of the network, with validators including P2P.org required to stake tokens as collateral.</li><li><strong>Fee Payment</strong>: BABY tokens are used to pay for network operations, including transactions, smart contract execution, and Bitcoin staking services.</li><li><strong>Bitcoin Staking Integration</strong>: BTC stakers receive a portion of their rewards in BABY tokens, creating natural demand as the Bitcoin staking ecosystem grows.</li></ul><h3 id="baby-tokenomics-and-staking-details"><strong>BABY Tokenomics and staking details</strong></h3><ul><li><strong>Fixed Supply</strong>: The total supply of BABY is capped at 10 billion tokens, creating a deflationary mechanism as adoption grows.</li><li><strong>Strategic Distribution</strong>: Tokens are distributed across various stakeholder groups including community airdrops, ecosystem development, Bitcoin stakers, and foundation reserves.</li><li><strong>Staking APR</strong>: Initial staking rewards are designed to encourage participation while transitioning to a sustainable long-term model.</li><li><strong>Unlock Schedule</strong>: Token unlocks follow a well-defined schedule to prevent market volatility and align with ecosystem growth milestones<br><br></li></ul><p><strong>Technical Staking Details:</strong></p><p>The slashing ratio for BABY staking is 5%.</p><p>Inflation: BABY has an annual inflation rate of 8%, split as follows:</p><p>• 4% allocated to BTC staking rewards</p><p>• 4% allocated to BABY staking rewards</p><p>Note: Investors, team members, and advisors cannot stake their locked BABY tokens during the first year.</p><p>BABY stake unbonding time: 300 Bitcoin blocks (about 50 hours) – Fast unbonding due to BTC security, unlike Cosmos chains' common 21 days.</p><p><a href="https://p2p.org/economy/a-step-by-step-to-baby-staking-with-keplr-wallet/" rel="noreferrer">Stake BABY now. </a></p><h2 id="comprehensive-validator-services-for-the-babylon-ecosystem"><strong>Comprehensive Validator Services for the Babylon Ecosystem</strong></h2><p>As one of the global top 3 validators, P2P.org is excited to announce our comprehensive staking service for BABY token holders. Our validator infrastructure is fully optimized to support the Babylon Genesis network, offering a secure, reliable staking experience.</p><h2 id="what-babylon-phase-2-means-for-you"><strong>What Babylon Phase 2 means for you</strong></h2><h3 id="for-baby-token-holders"><strong>For BABY Token Holders:</strong></h3><p>If you've received BABY tokens through the recent airdrop, you can now stake them with P2P.org validators to earn rewards while supporting the network's security. Our validator infrastructure offers industry-leading uptime, security, and competitive rewards.</p><h3 id="for-bitcoin-holders"><strong>For Bitcoin Holders:</strong></h3><p>P2P.org continues to offer Bitcoin staking through the Babylon protocol, allowing you to earn rewards on BTC holdings. Head to the <a href="https://btcstaking.babylonlabs.io/?ref=p2p.org" rel="noreferrer">Babylon Staking Dashboard</a> and start staking BTC with P2P.org today!</p><h2 id="getting-started"><strong>Getting Started</strong></h2><p>Ready to stake your BABY tokens? Check out our <a href="https://p2p.org/economy/a-step-by-step-to-baby-staking-with-keplr-wallet/" rel="noreferrer">comprehensive staking guide </a>that walks you through the process step by step. </p>

<p>In decentralized finance, one question stands above all others: "How much money am I actually making?" While this seems straightforward, the unique mechanics of DeFi—with its staking rewards, rebasing tokens, and other activities—make traditional profit-tracking methods inadequate.</p><p>In this guide, we're breaking down Lambda DeFi's inclusive approach to Profit and Loss (<strong><em>PnL</em></strong>) calculation, providing Wallets with the tools to help their users truly understand their portfolio performance.</p><h2 id="the-foundation-what-pnl-really-means-in-defi"><strong>The Foundation: What PnL Really Means in DeFi</strong></h2><p>At its core, PnL (<em>Profit and Loss</em>) is the <strong>total measure of your portfolio performance</strong>, expressed by a simple but powerful formula:</p><p><em>PnL = Unrealized Profit + Realized Profit</em></p><p>Let's dissect these components to understand what's actually happening with your assets:</p><h3 id="unrealized-profit-explained"><strong>Unrealized Profit Explained</strong></h3><p>Unrealized profit represents value changes in assets you still hold. This includes:</p><ul><li>Market value increases of tokens in your wallet</li><li>Accumulated but unclaimed staking rewards</li><li>Growth in rebasing tokens like stETH (where your token balance automatically increases)</li><li>Any accrued yield that hasn't been harvested</li></ul><p>The key characteristic: these profits <strong>exist "on paper" but haven't been captured in your wallet</strong> as separate assets yet.</p><h3 id="realized-profit-explained"><strong>Realized Profit Explained</strong></h3><p>Realized profit comes from completed transactions where you've locked in your gains or losses:</p><ul><li>Profits from selling tokens at a higher price than purchase</li><li>Claimed staking rewards that now sit in your wallet</li><li>Yield farming returns you've harvested</li><li>Any asset you've unwrapped, swapped, or converted to another form</li></ul><p>Both unrealized and realized profits can be negative when asset values decrease or when you sell at a loss.</p><h2 id="a-real-world-example-the-eth-investment-scenario"><strong>A Real-World Example: The ETH Investment Scenario</strong></h2><p>To make this concrete, let's examine a simple scenario:</p><p>A user purchases 1 ETH for $2,000. Later, the market price reaches $2,500.</p><p><strong>Scenario 1: A user HOLDS the ETH</strong></p><ul><li>Unrealized profit: $500 (the price appreciation a user could capture if he sold)</li><li>Realized profit: $0 (the user hasn't executed any action to lock in gains)</li><li>Total PnL: $500 (entirely on paper)</li></ul><p><strong>Scenario 2: A User SELLS the ETH</strong></p><ul><li>Unrealized profit: $0 (the user no longer holds the asset)</li><li>Realized profit: $500 (the user has locked in the gain by selling)</li><li>Total PnL: $500 (entirely captured)</li></ul><p>This illustrates how the same total PnL can have completely different implications for a user's portfolio liquidity and risk exposure.</p><h2 id="two-perspectives-base-vs-quote-currency-profit"><strong>Two Perspectives: Base vs. Quote Currency Profit</strong></h2><p>Lambda's approach provides two crucial perspectives on a user's portfolio:</p><h3 id="base-currency-profit"><strong>Base Currency Profit</strong></h3><p>This measures changes in the quantity of the actual crypto assets, answering the question: "How many more tokens do I have?"</p><p>For example:</p><ul><li>A user stakes 10 DOT and after 30 days has 10.5 DOT</li><li>The base currency profit is 0.5 DOT (5% growth in the asset quantity)</li></ul><p>This metric is particularly valuable in inflationary environments or when the user is focused on accumulating a specific asset.</p><h3 id="quote-currency-profit"><strong>Quote Currency Profit</strong></h3><p>This measures the monetary value of a user's holdings in the reference currency (often USD), answering: "How much more is my portfolio worth?"</p><p>For example:</p><ul><li>You stake 10 DOT worth $100 ($10 each)</li><li>After 30 days, you have 10.5 DOT, but DOT's price dropped to $9</li><li>Your quote currency value is now $94.50</li><li>Your quote currency PnL is -$5.50, despite having more DOT</li></ul><p>This perspective helps users to understand their actual financial position, accounting for both quantity and market price changes.</p><h2 id="the-algorithm-how-lambda-actually-calculates-user-pnl"><strong>The Algorithm: How Lambda Actually Calculates User PnL</strong></h2><p>Lambda's calculation methodology is specifically designed to <strong>capture the nuances</strong> of DeFi portfolio performance:</p><h3 id="1-interval-based-approach"><strong>1. Interval-Based Approach</strong></h3><p>Rather than looking at a portfolio in a single continuous period, we break it down into meaningful intervals:</p><ul><li><strong>User Action Intervals</strong>: Created whenever a user performs actions that change their portfolio structure:<ul><li>Buying or selling assets</li><li>Staking or unstaking</li><li>Adding liquidity or withdrawing</li><li>Claiming rewards</li><li>Receiving transfers from others</li></ul></li><li><strong>Regular Time Intervals</strong>: For longer periods, we also add standard time divisions (weekly for 1-month reports, monthly for 1-year reports) to capture market movements between user actions</li></ul><p>This approach ensures we catch both active decisions and passive market effects.</p><h3 id="2-comprehensive-data-collection"><strong>2. Comprehensive Data Collection</strong></h3><p>For each interval, we record:</p><ul><li>Starting and ending token balances</li><li>Starting and ending token prices</li><li>Any external influences (network rewards, rebases, etc.)</li></ul><h3 id="3-precise-pnl-calculation-formula"><strong>3. Precise PnL Calculation Formula</strong></h3><p>For each interval, we calculate:</p><p><em>Interval PnL = (End Price × End Balance) - (Start Price × Start Balance)</em></p><p>This captures both price effects and quantity changes in a single metric.</p><h3 id="4-results-aggregation"><strong>4. Results Aggregation</strong></h3><p>We then aggregate all interval results to produce:</p><ul><li>Overall period PnL</li><li>Time-segmented PnL (monthly, quarterly, etc.)</li><li>Performance visualizations</li></ul><h2 id="the-sttoken-example-seeing-lambdas-pnl-calculation-in-action"><strong>The stToken Example: Seeing Lambda's PnL Calculation in Action</strong></h2><p>Let's walk through a detailed example with a staking token that automatically increases in balance over time:</p><p><strong>Timeline:</strong></p><ul><li><strong>January 3, 2023</strong>: Initial purchase of 1 stToken at $200</li><li><strong>February 5, 2024</strong>: Received 1.5 additional stTokens from a friend</li><li><strong>December 10, 2024</strong>: Unwrapped 0.5 stToken</li><li><strong>December 31, 2024</strong>: PnL report requested</li></ul><h3 id="step-1-dividing-into-intervals"><strong>Step 1: Dividing into Intervals</strong></h3><p>Lambda divides this into multiple intervals:</p><ul><li>12 monthly points (Jan 2023 through Dec 2024)</li><li>4 additional points for user activities (purchase, top-up, withdrawal, current time)</li></ul><p>This creates intervals like:</p><ul><li>Jan 3 - Feb 1, 2023</li><li>Feb 1 - Feb 5, 2023</li><li>Feb 5 - Mar 1, 2023</li><li>...and so on</li></ul><h3 id="step-2-tracking-data-points"><strong>Step 2: Tracking Data Points</strong></h3><p>For each interval, we record:</p><ul><li>Beginning and ending token balances</li><li>Beginning and ending token prices</li></ul><h3 id="step-3-calculating-interval-pnl"><strong>Step 3: Calculating Interval PnL</strong></h3><p>For each period, the calculation works like this:</p> <!--kg-card-begin: html--> <table style="border:none;border-collapse:collapse;"><colgroup><col width="121"><col width="150"><col width="136"><col width="169"><col width="70"></colgroup><tbody><tr style="height:34pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;text-align: center;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">Interval</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;text-align: center;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">Token Balance Change</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;text-align: center;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">Token Price Change</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;text-align: center;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">Calculation</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;text-align: center;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">PnL ($)</span></p></td></tr><tr style="height:34pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">Jan 3 - Feb 1</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">1.0 → 1.1</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">$200 → $180</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">(180×1.1) - (200×1.0)</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">-$2.00</span></p></td></tr><tr style="height:34pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">Feb 1 - Feb 5</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">1.1 → 1.12</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">$180 → $185</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">(185×1.12) - (180×1.1)</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">+$9.20</span></p></td></tr><tr style="height:34pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">Feb 5 - Mar 1</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">2.62 → 2.7</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">$185 → $175</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">(175×2.7) - (185×2.62)</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">-$12.00</span></p></td></tr><tr style="height:34pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">Mar 1 - Apr 1</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">2.7 → 2.8</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">$175 → $175</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">(175×2.di8) - (175×2.7)</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">+$17.50</span></p></td></tr><tr style="height:22.75pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">...</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">...</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">...</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">...</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">...</span></p></td></tr><tr style="height:34pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">Dec 1 - Dec 10</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">3.1 → 3.3</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">$175 → $175</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">(175×3.3) - (175×3.1)</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">+$35.00</span></p></td></tr><tr style="height:34pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">Dec 10 - Dec 31</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">2.8 → 2.88</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">$175 → $180</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">(180×2.88) - (175×2.8)</span></p></td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.38;margin-top:12pt;margin-bottom:12pt;"><span style="font-size:10pt;font-family:'IBM Plex Sans',sans-serif;color:#003057;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;">+$28.40</span></p></td></tr></tbody></table> <!--kg-card-end: html--> <h3 id="step-4-aggregating-results"><strong>Step 4: Aggregating Results</strong></h3><p><strong>Adding all interval PnL values gives your total one-year PnL: $76.10</strong></p><p>This detailed breakdown shows exactly how a user's position evolved through price changes, balance growth, additional deposits, and partial withdrawals.</p><p></p><div class="kg-card kg-button-card kg-align-center"><a href="https://lambda.p2p.org/?ref=p2p.org#contact_us" class="kg-btn kg-btn-accent">Get Started Here</a></div><p></p><h2 id="understanding-specific-defi-scenarios"><strong>Understanding Specific DeFi Scenarios</strong></h2><p>Lambda's PnL calculation handles various DeFi-specific situations:</p><h3 id="rebasing-tokens-like-steth"><strong>Rebasing Tokens (like stETH)</strong></h3><p>With tokens that automatically increase in quantity:</p><ul><li>Balance growth is captured within intervals</li><li>This growth is counted as profit, even without explicit claiming</li></ul><h3 id="yield-farming"><strong>Yield Farming</strong></h3><p>For yield farming positions:</p><ul><li>Unclaimed rewards are tracked as unrealized profit</li><li>Claimed rewards become realized profit</li><li>Compounding effects are captured through balance increases</li></ul><h3 id="liquidity-provision"><strong>Liquidity Provision</strong></h3><p>For LP positions:</p><ul><li>Impermanent loss is factored into the price component</li><li>Earned fees are captured as balance increases</li><li>Token ratio shifts are handled through the balance measurement</li></ul><h2 id="how-lambdas-pnl-offers-unique-revenue-opportunities-for-wallets"><strong>How Lambda's PnL Offers Unique Revenue Opportunities for Wallets</strong></h2><p>Understanding true DeFi performance goes beyond simple curiosity—<strong>it directly translates to strategic business advantages for wallet applications.</strong></p><p>Within the user base, DeFi users represent the most valuable cohort, driving the majority of profitable transactions. Lambda's PnL solution helps retain these high-value users through a <strong>genuine market differentiator</strong>—no wallet in the ecosystem currently offers true DeFi return tracking or distinguishes rewards from regular transfers.</p><p>This retention advantage works on two crucial levels:</p><ol><li><strong>Experienced DeFi users stay engaged</strong> when they can finally track their actual portfolio performance, keeping your most profitable customers within your ecosystem.</li><li><strong>New users gain the confidence to explore DeFi</strong> when presented with familiar performance metrics that mirror traditional Web2 investment platforms, accelerating their journey toward becoming power users.</li></ol><p>By implementing Lambda's PnL tracking, wallet providers create a compelling reason for users to stay within their ecosystem rather than switching between applications or abandoning DeFi altogether when faced with performance uncertainty.</p><h2 id="start-tracking-your-true-defi-performance-today"><strong>Start Tracking Your True DeFi Performance Today</strong></h2><p>To start tracking your true DeFi performance, you can request access to query the PnL data with Lambda.</p><p></p><div class="kg-card kg-button-card kg-align-center"><a href="https://lambda.p2p.org/?ref=p2p.org#contact_us" class="kg-btn kg-btn-accent">Request Your API Key Here</a></div><p></p><p>Lambda's sophisticated yet intuitive PnL calculation gives you the data-backed insights needed to increase your revenue.</p><p>No more spreadsheets, manual calculations, or incomplete metrics—just clear, accurate performance tracking that captures all the nuances of your DeFi portfolio.</p><h2 id="corner-cases-and-faq"><strong>Corner Cases and FAQ</strong></h2><p><strong>Q: Can I evaluate PnL for positions I've already closed?</strong></p><p><strong>A:</strong> Yes. Lambda analyzes historical data on asset acquisition and disposal prices, allowing for retroactive PnL calculation even for positions that no longer exist in your portfolio.</p><p><strong>Q: How does Lambda account for swaps and bridging in PnL calculations?</strong></p><p><strong>A:</strong> Swaps and bridging are treated as events that trigger the closing of one position and opening of another. For example, swapping ETH to USDT closes your ETH position and opens a USDT position, with each having its own PnL tracking.</p><p>For immediate losses or gains during swaps (like slippage costs), Lambda will introduce a transaction-level PnL feature in Q2 that captures these effects separately from position-level PnL.</p><p><strong>Q: How does Lambda handle external transfers?</strong></p><p><strong>A:</strong> Third-party transfers (like receiving tokens from a friend) are treated similarly to manual top-ups—they create a new interval but don't reset your entire position history.</p><p><strong>Q: How does the system handle price volatility in both base and quote currencies?</strong></p><p><strong>A:</strong></p><ul><li>USD as a base currency is stable (always = $1)</li><li>For crypto assets, we use historical price feeds that capture all volatility</li><li>Calculations are performed at interval boundaries to capture significant price movements</li></ul><p><strong>Q: How does Lambda handle withdrawals and top-ups?</strong></p><p><strong>A:</strong></p><ul><li>Full withdrawals mark the end of a position</li><li>Partial withdrawals create a new interval but maintain position continuity</li><li>Top-ups (additions to existing positions) create new intervals with the combined balance going forward</li></ul><p>Want to experience the power of Lambda's PnL tracking for yourself?<a href="https://p2p.org/contact?ref=p2p.org"> </a><a href="https://lambda.p2p.org/?ref=p2p.org#contact_us"><u>Contact our team</u></a> today to learn how our staking solutions can optimize your crypto portfolio while providing unparalleled transparency into your portfolio performance.</p><p><strong>Website</strong>: <a href="https://lambda.p2p.org/?ref=p2p.org">https://lambda.p2p.org/</a></p><hr><p><em>The information provided above is for informational purposes only and should not be construed as, or relied upon as, investment, financial, or any other type of professional advice. P2P.org or any associated parties do not offer any form of advisory services, and nothing shared here should be considered as a recommendation or endorsement for any financial decisions. P2P.org are not responsible for any decisions made based on the information provided. You are encouraged to consult with a qualified financial advisor or professional before making any investment or financial decisions.</em></p>