Kristof Kammerhofer

P2P.org's TON Widget Goes Live in Ledger: Institutional-Grade TON Staking for 7+ Million Users

<h2 id="tldr">TL;DR</h2><ul><li>P2P.org's TON staking widget is now live in Ledger Live, making us the first validator to bring native TON staking to 7+ million hardware wallet users</li><li>Ledger users can stake with just 10 TON minimum through the only TON staking smart contract audited by both Quantstamp and Trail of Bits</li><li>This groundbreaking integration was completed in under 7 days, proving P2P.org's widget can be deployed faster than any competitor</li></ul>After revolutionizing TON staking with Ton Whales by dropping minimums from 300,000 to just 10 TON, P2P.org is now live in Ledger Live. This makes us the first validator to bring native TON staking to the world's most trusted hardware wallet, setting a new standard for how quickly and securely staking can be integrated.In less than a week, we delivered what typically takes months – a fully functional, enterprise-grade staking solution embedded directly in Ledger's interface. This integration is another validation that P2P.org's plug-and-play widget can scale from securing $10+ billion across 40 networks to serving millions of retail users, all while maintaining the security standards that convinced Ledger's review team.<div class="kg-card kg-button-card kg-align-center"><a href="https://calendly.com/d/cq26-96v-sr3/intro-call-with-the-p2p-sales-team?ref=p2p.org" class="kg-btn kg-btn-accent">Bring TON Staking to Your Platform</a></div><h2 id="what-ledger-users-get">What Ledger Users Get</h2>Lowest Barrier to Entry Stake with just 10 TON – a 30,000x improvement over native validation requirements. The same accessibility we pioneered with Ton Whales, now available to 7+ million Ledger users.Unmatched Smart Contract Security Ledger users interact with the TonWhales smart contract – the only TON staking contract that has undergone dual audits by both Quantstamp and Trail of Bits, specifically focusing on TON's FunC programming language. This represents the most thorough security review of any TON staking contract in the ecosystem.Enterprise Infrastructure, Individual Access The validator infrastructure trusted by 100+ institutions across 40+ networks, managing over $10 billion in assets, now secures every Ledger user's TON stake. With 99.9% uptime and zero slashing incidents, your TON benefits from institutional-grade security.True Non-Custodial Staking Your TON never leaves your control. The widget maintains the non-custodial nature of the staking process – users connect their own wallets, control their private keys, and interact directly with audited smart contracts. Ledger protects your funds and never takes custody.Transparent Real-Time Rewards Track your staking performance with complete transparency:<ul><li>Network Reward Rate (NRR): Approximately 4.7%, auto-compounded</li><li>Activation time: Stakes become active within 18-36 hours</li><li>Reward frequency: Every 36 hours</li><li>Unstaking period: Withdrawals processed within 36 hours</li></ul><h2 id="the-widget-that-changes-everything">The Widget That Changes Everything</h2>While competitors require weeks or months of backend development, smart contract auditing, and operational setup, P2P.org's widget eliminates all of that complexity. The integration that brought TON staking to Ledger Live showcases what's possible:<blockquote>”Ledger Live is the best way to securely interact with your digital assets, and we’re always looking for new ways to enable Ledger users to do more with their digital value and P2P.org’s native TON staking widget in Ledger Live lowers the barrier for users to stake their TON securely, providing more choice and optionality.” - Jean-Francois Rochet, EVP of Consumer Services at Ledger </blockquote><div class="kg-card kg-button-card kg-align-center"><a href="https://go.ledger.com/ledger/p2p-ton-staking-ext?ref=p2p.org" class="kg-btn kg-btn-accent">Experience the Widget in Ledger Live</a></div> Here's what convinced Ledger to choose P2P.org:<ul><li>Dual-Audited Security: The only TON staking contract audited by both Quantstamp and Trail of Bits</li><li>Frontend-Only Implementation: No backend development or smart contract management required</li><li>Proven Multi-Chain Expertise: Experience from 40+ networks and $10 billion managed</li><li>Revolutionary Integration Speed: Full deployment in under 7 days</li><li>Complete Customization: Full white-label capabilities matching Ledger's interface perfectly</li></ul><h2 id="how-it-works">How It Works</h2>Staking TON through Ledger Live is remarkably simple:<ol><li>Open Ledger Live and navigate to the "Earn" section</li><li>Select TON and choose P2P.org as your validator</li><li>Enter any amount above 10 TON</li><li>Confirm the transaction with your Ledger device</li></ol>Behind the scenes, users interact with the fully audited TonWhales smart contract through our widget embedded directly in Ledger's interface. The entire staking journey – from initial deposit to reward tracking – happens within Ledger Live without any external redirects.<h2 id="why-this-partnership-changes-ton-staking">Why This Partnership Changes TON Staking</h2>The Ledger integration represents a blueprint for the industry. By choosing P2P.org's widget solution, Ledger validated a new approach to staking infrastructure:Speed Without Sacrifice: What traditionally required months of development was delivered in daysSecurity Through Simplicity: Frontend-only integration backed by dual-audited smart contractsScale Through Standards: The same widget powering 7+ million Ledger users is available to any platform<h2 id="the-ripple-effect-begins">The Ripple Effect Begins</h2>This Ledger integration is already catalyzing change across the industry:<ul><li>Multiple major wallets are exploring our "under 7 days" deployment promise</li><li>Exchanges see how frontend-only integration eliminates backend complexity</li><li>Custodians recognize that dual-audited security meets institutional requirements</li></ul>Ledger saw the opportunity — and went live in 72 hours. While others debate, they’re already generating rewards. You could be next, so what are you waiting for?<h2 id="built-for-scale-designed-for-partners">Built for Scale, Designed for Partners</h2>Our widget isn't just for Ledger. It's a plug-and-play solution for any platform seeking to offer TON staking:Technical Specifications:<ul><li>Deployment time: Under one week from integration to live</li><li>Development scope: Frontend-only implementation</li><li>Compatibility: Works with TonKeeper, MyTonWallet, and all Ton Connect-compatible wallets</li><li>Customization: Full branding control with customizable colors, logos, and UI elements</li><li>Integration method: Webview or iFrame component that embeds directly into existing applications</li></ul>Business Benefits:<ul><li>Revenue sharing model: Earn a percentage of validator fees from every TON staked</li><li>No minimum requirements: Start small and scale freely</li><li>24/7 support: From the team that built Ledger's integration</li><li>Proven security: The only dual-audited TON staking smart contract</li></ul>Whether you're a wallet with millions of users or an exchange looking to expand offerings, P2P.org's TON widget delivers enterprise infrastructure with consumer simplicity.<div class="kg-card kg-button-card kg-align-center"><a href="https://calendly.com/d/cq26-96v-sr3/intro-call-with-the-p2p-sales-team?ref=p2p.org" class="kg-btn kg-btn-accent">Bring TON Staking to Your Platform</a></div><h2 id="enterprise-ready-security-infrastructure"> Enterprise-Ready Security Infrastructure</h2>The widget leverages P2P.org's comprehensive security infrastructure, which includes:Smart Contract Security: The TonWhales contract's dual audits by Quantstamp and Trail of Bits specifically focused on TON's FunC programming language, making it the most thoroughly reviewed staking contract in the TON ecosystem.Operational Risk Management: Advanced validator allocation algorithms automatically distribute stakes, while real-time monitoring systems detect and respond to potential issues before they impact user funds.Slashing Protection: Comprehensive coverage ensures user funds are protected, with 24/7 monitoring and incident response managed by P2P.org's institutional team.<h2 id="join-the-ton-staking-revolution">Join the TON Staking Revolution</h2>With Ledger's integration now live, P2P.org continues our mission of making institutional-grade staking accessible to everyone. Following our game-changing partnership with Ton Whales and now Ledger, we're setting new standards for speed, security, and simplicity in TON staking.For Ledger users: Start staking your TON today in Ledger LiveFor integration partners: Experience the widget live at <a href="https://www.p2p.org/networks/ton?ref=p2p.org">https://www.p2p.org/networks/ton</a> and discover why Ledger chose P2P.orgReady to integrate TON staking in under a week? Contact our team: Aleksandr Tishin, Product Manager, P2P.org 📧 <a href="mailto:[email protected]" rel="noreferrer">[email protected]</a> 📅<a href="https://calendly.com/d/cq26-96v-sr3/intro-call-with-the-p2p-sales-team?ref=p2p.org" rel="noreferrer"> Schedule a call</a>The future of TON staking is here with the P2P.org Staking Widget. And it takes less than 7 days to join.<hr><h2 id="frequently-asked-questions-about-p2porgs-ton-staking-widget-ledger-integration">Frequently Asked Questions About P2P.org's TON Staking Widget & Ledger Integration</h2><h3 id="can-i-white-label-the-ton-staking-widget-for-my-platform">Can I white-label the TON staking widget for my platform?</h3>Yes, P2P.org's TON staking widget offers full white-label customization. You can customize colors, logos, fonts, and all UI elements to seamlessly match your platform's branding. Your users will experience a fully branded TON staking journey without any P2P.org references, maintaining complete brand consistency throughout the staking process.<h3 id="does-the-ton-widget-require-users-to-leave-my-app-or-website">Does the TON widget require users to leave my app or website?</h3>No, the P2P.org TON staking widget embeds directly into your existing interface using iFrame or webview technology. All staking interactions – from connecting wallets to tracking rewards – happen within your platform. There are no external redirects, pop-ups, or separate applications required. Users complete their entire TON staking journey without ever leaving your environment.<h3 id="what-are-the-minimum-requirements-to-integrate-p2porgs-ton-staking-widget">What are the minimum requirements to integrate P2P.org's TON staking widget?</h3>There are zero minimum requirements – no user volume thresholds, no minimum stake amounts, and no volume commitments. Whether you're a startup with hundreds of users or an established platform like Ledger with millions, the TON widget scales automatically. Start small and grow without any limitations or tier restrictions.<h3 id="how-long-does-ton-widget-integration-take-compared-to-traditional-staking-solutions">How long does TON widget integration take compared to traditional staking solutions?</h3>P2P.org's TON widget integration takes less than 7 days from start to production – the same timeline that enabled Ledger's rapid deployment. Traditional TON staking integrations require 1-2 months of development. Our frontend-only widget eliminates backend complexity, smart contract management, and validator relationships, reducing integration time by 90%.<h3 id="which-ton-wallets-are-compatible-with-the-p2porg-staking-widget">Which TON wallets are compatible with the P2P.org staking widget?</h3>The widget supports all major TON wallets including TonKeeper, MyTonWallet, Tonhub, and every Ton Connect-compatible wallet. Ledger Live users can stake directly through their hardware wallet integration. The widget automatically detects and connects with users' preferred wallets without requiring additional plugins or configurations.<h3 id="do-i-need-to-manage-ton-smart-contracts-or-validator-infrastructure">Do I need to manage TON smart contracts or validator infrastructure?</h3>No, P2P.org handles all technical complexity. Our widget connects to the dual-audited TonWhales smart contract (audited by Quantstamp and Trail of Bits) and manages all validator relationships. You simply embed our widget – we handle smart contract interactions, validator selection, reward distribution, and 24/7 monitoring of the staking infrastructure.<h3 id="how-does-revenue-sharing-work-with-the-ton-staking-widget">How does revenue sharing work with the TON staking widget?</h3>Partners earn a percentage of validator fees from every TON staked through their platform. Revenue sharing is automatic, transparent, and paid out regularly. There are no complex calculations or manual tracking required. Partners can monitor their earnings in real-time through our dashboard, with detailed analytics on staking volume and revenue generation.<h3 id="what-makes-p2porgs-ton-staking-more-secure-than-competitors">What makes P2P.org's TON staking more secure than competitors?</h3>P2P.org uses the only TON staking smart contract with dual security audits from both Quantstamp and Trail of Bits, specifically reviewing TON's FunC programming language. Combined with our $10 billion track record across 40+ networks, 99.9% uptime, and zero slashing incidents, we offer the most secure TON staking infrastructure available – which is why Ledger chose us.<h3 id="can-the-widget-handle-enterprise-scale-volume-like-ledgers-7-million-users">Can the widget handle enterprise-scale volume like Ledger's 7 million users?</h3>Yes, the same widget infrastructure supporting Ledger's 7+ million users is available to all partners. Our enterprise-grade infrastructure automatically scales to handle any volume, from hundreds to millions of users, without performance degradation. The widget is backed by P2P.org's institutional infrastructure managing over $10 billion in staked assets.<h3 id="what-are-the-ton-staking-parameters-and-rewards-through-p2porg">What are the TON staking parameters and rewards through P2P.org?</h3>Current TON staking through P2P.org offers approximately 4.7% annual rewards (auto-compounded), with stakes activating in 18-36 hours, rewards distributed every 36 hours, and unstaking completed within 36 hours. The minimum stake is just 10 TON compared to 300,000 TON for native validation. All parameters are transparent and verifiable on-chain.<h3 id="how-do-i-get-started-with-ton-widget-integration-like-ledger-did">How do I get started with TON widget integration like Ledger did?</h3>Getting started is simple: Contact our integration team at [email protected] or schedule a technical consultation. We'll provide access to our sandbox environment, complete documentation, and integration guides. Most partners go from first contact to live production in under 7 days, following the same streamlined process that enabled Ledger's record-breaking integration.<h3 id="is-technical-support-included-with-the-ton-staking-widget">Is technical support included with the TON staking widget?</h3>Yes, all partners receive 24/7 technical support from the same team that built Ledger's integration. This includes pre-integration consultation, implementation assistance, testing support, and ongoing maintenance help. Our dedicated partner success team ensures smooth operations and helps optimize your staking offering for maximum user adoption and revenue generation.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 is 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. Rewards are estimated and not guaranteed. Past performance is no guarantee of future results.

Kristof Kammerhofer

from p2p validator

Platforms can now access Hyperliquid's $350B Monthly Volume with P2P.org

P2P.org has added Hyperliquid to its Staking API, enabling any platform to offer non-custodial $HYPE staking — starting with our validator in partnership with HyperBeat.<ul><li><a href="http://p2p.org/?ref=p2p.org">P2P.org</a> enables platforms to capture their part of Hyperliquid's $350B monthly volume as platform revenue with a 3-day integration.</li><li>Your users keep assets in their wallets while platforms can keep 100% brand ownership— P2P.org just handles the infrastructure.</li><li>Platforms can launch $HYPE staking within a 72-hour timeframe using the same system managing $10B+ for institutions.</li></ul><div class="kg-card kg-button-card kg-align-center"><a href="https://calendly.com/d/cq26-96v-sr3/intro-call-with-the-p2p-sales-team?ref=p2p.org" class="kg-btn kg-btn-accent">Start your Integration Here</a></div>Hyperliquid processed $350 billion in trading volume last month. Your platform has the potential to capture that momentum today, without hiring a single DevOps engineer. $HYPE staking is now live via the P2P.org Staking API. With only a three-day integration time and zero infrastructure overhead. Your customers stay in their flow, and you capture the value.Staking is one of the must-haves for platforms in 2025, and <a href="http://p2p.org/?ref=p2p.org">P2P.org</a> made it plug-and-play for Hyperliquid. This integration is letting exchanges, wallets, and custodians offer instant $HYPE staking while they keep 100% brand ownership.<h3 id="an-enablement-milestone">An Enablement Milestone</h3>This update lays the groundwork for future platform integrations:<ul><li>Blockchain integration complete — P2P.org has added Hyperliquid to the Staking API.</li><li>Validator route live — HyperBeat’s validator serves as the initial staking endpoint.</li><li>Ready for partner adoption — Hyperliquid is now live in the P2P Staking API, and platforms can start integrating it into their products immediately.</li></ul><h3 id="what-this-means-for-platforms">What This Means for Platforms</h3>The addition of Hyperliquid to the P2P Staking API delivers:<ul><li>No infrastructure overhead — No validator ops, no devops hiring, no uptime worries.</li><li>Full UX & brand ownership — We manage the backend; you own the frontend, the customer relationship, and the value capture.</li><li>Non-custodial by design — Assets stay in user wallets, never leaving their control.</li><li>Proven validator performance — The same infrastructure trusted by top funds, DAOs, and treasuries.</li></ul>For Hyperliquid, this means scalable, non-custodial staking suitable for both high-frequency retail traders and institutional allocations.<h2 id="the-bigger-picture-staking-as-a-platform-feature">The Bigger Picture: Staking as a Platform Feature</h2>We’re entering the platformization era of staking. Institutions and consumer platforms increasingly want to offer staking natively — keeping users, retaining brand value, and capturing the upside — without the complexity of running validators themselves.The P2P.org Staking API was built for this reality. Are You Ready to Ship $HYPE Staking?<div class="kg-card kg-button-card kg-align-center"><a href="https://calendly.com/d/cq26-96v-sr3/intro-call-with-the-p2p-sales-team?ref=p2p.org" class="kg-btn kg-btn-accent">Start your Integration Here</a></div><h2 id="what-is-hyperbeat">What is HyperBeat?</h2>HyperBeat is an active validator and infrastructure provider within the Hyperliquid ecosystem, contributing to the network’s stability, performance, and decentralization.By partnering with HyperBeat, P2P.org ensures the initial validator route for Hyperliquid staking through our API is backed by a trusted operator already embedded in the ecosystem. This collaboration provides reliable, high-uptime staking from day one — with room to add more validators as adoption grows.Need more info? Explore our docs: Unified API: <a href="https://docs.p2p.org/docs/unified-api-hyperliquid?ref=p2p.org#/" rel="noreferrer">https://docs.p2p.org/docs/unified-api-hyperliquid</a> Staking API: <a href="https://docs.p2p.org/docs/overview-hyperliquid?ref=p2p.org#/" rel="noreferrer">https://docs.p2p.org/docs/overview-hyperliquid</a>

Kristof Kammerhofer

from p2p validator

P2P.org Announces Support for Babylon Genesis Baby Staking

Expanding our validator services to support the Babylon network and enhancing Bitcoin staking options. <h2 id="a-new-chapter-in-bitcoin-staking">A New Chapter in Bitcoin Staking</h2>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.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.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.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.<h2 id="what-is-babylon">What is Babylon?</h2>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:Babylon Bitcoin Staking Protocol: 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.Babylon Genesis: 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.Together, these components form the foundation of a groundbreaking Bitcoin staking ecosystem, bringing new utility to Bitcoin in the proof-of-stake world.<h3 id="babylon-phase-2the-three-facets-of-the-babylon-genesis-network">Babylon Phase 2 - The Three Facets of the Babylon Genesis Network</h3>Babylon Genesis is a multi-faceted blockchain, and we will explore it from three perspectives:<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>You can find more details on Babylon Phase 2 <a href="https://babylonlabs.io/blog/the-three-facets-of-babylon-genesis?ref=p2p.org">here</a>. <h2 id="the-baby-token-powering-the-babylon-ecosystem">The BABY Token: Powering the Babylon Ecosystem</h2>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.<h3 id="baby-token-utility-and-economics">BABY Token Utility and Economics</h3><ul><li>Governance Rights: BABY token holders directly influence the protocol's future development, parameter changes, and treasury allocation through on-chain governance voting.</li><li>Staking Rewards: By staking BABY tokens, holders earn rewards from network transaction fees and protocol inflation.</li><li>Security Mechanism: Staked BABY tokens serve as the security backbone of the network, with validators including P2P.org required to stake tokens as collateral.</li><li>Fee Payment: BABY tokens are used to pay for network operations, including transactions, smart contract execution, and Bitcoin staking services.</li><li>Bitcoin Staking Integration: 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">BABY Tokenomics and staking details</h3><ul><li>Fixed Supply: The total supply of BABY is capped at 10 billion tokens, creating a deflationary mechanism as adoption grows.</li><li>Strategic Distribution: Tokens are distributed across various stakeholder groups including community airdrops, ecosystem development, Bitcoin stakers, and foundation reserves.</li><li>Staking APR: Initial staking rewards are designed to encourage participation while transitioning to a sustainable long-term model.</li><li>Unlock Schedule: Token unlocks follow a well-defined schedule to prevent market volatility and align with ecosystem growth milestones </li></ul>Technical Staking Details:The slashing ratio for BABY staking is 5%.Inflation: BABY has an annual inflation rate of 8%, split as follows:• 4% allocated to BTC staking rewards• 4% allocated to BABY staking rewardsNote: Investors, team members, and advisors cannot stake their locked BABY tokens during the first year.BABY stake unbonding time: 300 Bitcoin blocks (about 50 hours) – Fast unbonding due to BTC security, unlike Cosmos chains' common 21 days.<a href="https://p2p.org/economy/a-step-by-step-to-baby-staking-with-keplr-wallet/" rel="noreferrer">Stake BABY now. </a><h2 id="comprehensive-validator-services-for-the-babylon-ecosystem">Comprehensive Validator Services for the Babylon Ecosystem</h2>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.<h2 id="what-babylon-phase-2-means-for-you">What Babylon Phase 2 means for you</h2><h3 id="for-baby-token-holders">For BABY Token Holders:</h3>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.<h3 id="for-bitcoin-holders">For Bitcoin Holders:</h3>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!<h2 id="getting-started">Getting Started</h2>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.

Kristof Kammerhofer

from p2p validator

Introducing Lambda’s DeFi PnL

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.In this guide, we're breaking down Lambda DeFi's inclusive approach to Profit and Loss (PnL) calculation, providing Wallets with the tools to help their users truly understand their portfolio performance.<h2 id="the-foundation-what-pnl-really-means-in-defi">The Foundation: What PnL Really Means in DeFi</h2>At its core, PnL (Profit and Loss) is the total measure of your portfolio performance, expressed by a simple but powerful formula:PnL = Unrealized Profit + Realized ProfitLet's dissect these components to understand what's actually happening with your assets:<h3 id="unrealized-profit-explained">Unrealized Profit Explained</h3>Unrealized profit represents value changes in assets you still hold. This includes:<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>The key characteristic: these profits exist "on paper" but haven't been captured in your wallet as separate assets yet.<h3 id="realized-profit-explained">Realized Profit Explained</h3>Realized profit comes from completed transactions where you've locked in your gains or losses:<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>Both unrealized and realized profits can be negative when asset values decrease or when you sell at a loss.<h2 id="a-real-world-example-the-eth-investment-scenario">A Real-World Example: The ETH Investment Scenario</h2>To make this concrete, let's examine a simple scenario:A user purchases 1 ETH for $2,000. Later, the market price reaches $2,500.Scenario 1: A user HOLDS the ETH<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>Scenario 2: A User SELLS the ETH<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>This illustrates how the same total PnL can have completely different implications for a user's portfolio liquidity and risk exposure.<h2 id="two-perspectives-base-vs-quote-currency-profit">Two Perspectives: Base vs. Quote Currency Profit</h2>Lambda's approach provides two crucial perspectives on a user's portfolio:<h3 id="base-currency-profit">Base Currency Profit</h3>This measures changes in the quantity of the actual crypto assets, answering the question: "How many more tokens do I have?"For example:<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>This metric is particularly valuable in inflationary environments or when the user is focused on accumulating a specific asset.<h3 id="quote-currency-profit">Quote Currency Profit</h3>This measures the monetary value of a user's holdings in the reference currency (often USD), answering: "How much more is my portfolio worth?"For example:<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>This perspective helps users to understand their actual financial position, accounting for both quantity and market price changes.<h2 id="the-algorithm-how-lambda-actually-calculates-user-pnl">The Algorithm: How Lambda Actually Calculates User PnL</h2>Lambda's calculation methodology is specifically designed to capture the nuances of DeFi portfolio performance:<h3 id="1-interval-based-approach">1. Interval-Based Approach</h3>Rather than looking at a portfolio in a single continuous period, we break it down into meaningful intervals:<ul><li>User Action Intervals: 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>Regular Time Intervals: 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>This approach ensures we catch both active decisions and passive market effects.<h3 id="2-comprehensive-data-collection">2. Comprehensive Data Collection</h3>For each interval, we record:<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">3. Precise PnL Calculation Formula</h3>For each interval, we calculate:Interval PnL = (End Price × End Balance) - (Start Price × Start Balance)This captures both price effects and quantity changes in a single metric.<h3 id="4-results-aggregation">4. Results Aggregation</h3>We then aggregate all interval results to produce:<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">The stToken Example: Seeing Lambda's PnL Calculation in Action</h2>Let's walk through a detailed example with a staking token that automatically increases in balance over time:Timeline:<ul><li>January 3, 2023: Initial purchase of 1 stToken at $200</li><li>February 5, 2024: Received 1.5 additional stTokens from a friend</li><li>December 10, 2024: Unwrapped 0.5 stToken</li><li>December 31, 2024: PnL report requested</li></ul><h3 id="step-1-dividing-into-intervals">Step 1: Dividing into Intervals</h3>Lambda divides this into multiple intervals:<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>This creates intervals like:<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">Step 2: Tracking Data Points</h3>For each interval, we record:<ul><li>Beginning and ending token balances</li><li>Beginning and ending token prices</li></ul><h3 id="step-3-calculating-interval-pnl">Step 3: Calculating Interval PnL</h3>For each period, the calculation works like this:  <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;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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 ($)</td></tr><tr style="height:34pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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)</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td></tr><tr style="height:34pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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)</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td></tr><tr style="height:34pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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)</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td></tr><tr style="height:34pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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)</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td></tr><tr style="height:22.75pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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;">...</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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;">...</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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;">...</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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;">...</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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;">...</td></tr><tr style="height:34pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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)</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td></tr><tr style="height:34pt"><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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)</td><td style="vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><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</td></tr></tbody></table>  <h3 id="step-4-aggregating-results">Step 4: Aggregating Results</h3>Adding all interval PnL values gives your total one-year PnL: $76.10This detailed breakdown shows exactly how a user's position evolved through price changes, balance growth, additional deposits, and partial withdrawals.<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><h2 id="understanding-specific-defi-scenarios">Understanding Specific DeFi Scenarios</h2>Lambda's PnL calculation handles various DeFi-specific situations:<h3 id="rebasing-tokens-like-steth">Rebasing Tokens (like stETH)</h3>With tokens that automatically increase in quantity:<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">Yield Farming</h3>For yield farming positions:<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">Liquidity Provision</h3>For LP positions:<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">How Lambda's PnL Offers Unique Revenue Opportunities for Wallets</h2>Understanding true DeFi performance goes beyond simple curiosity—it directly translates to strategic business advantages for wallet applications.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 genuine market differentiator—no wallet in the ecosystem currently offers true DeFi return tracking or distinguishes rewards from regular transfers.This retention advantage works on two crucial levels:<ol><li>Experienced DeFi users stay engaged when they can finally track their actual portfolio performance, keeping your most profitable customers within your ecosystem.</li><li>New users gain the confidence to explore DeFi when presented with familiar performance metrics that mirror traditional Web2 investment platforms, accelerating their journey toward becoming power users.</li></ol>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.<h2 id="start-tracking-your-true-defi-performance-today">Start Tracking Your True DeFi Performance Today</h2>To start tracking your true DeFi performance, you can request access to query the PnL data with Lambda.<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>Lambda's sophisticated yet intuitive PnL calculation gives you the data-backed insights needed to increase your revenue.No more spreadsheets, manual calculations, or incomplete metrics—just clear, accurate performance tracking that captures all the nuances of your DeFi portfolio.<h2 id="corner-cases-and-faq">Corner Cases and FAQ</h2>Q: Can I evaluate PnL for positions I've already closed?A: 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.Q: How does Lambda account for swaps and bridging in PnL calculations?A: 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.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.Q: How does Lambda handle external transfers?A: 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.Q: How does the system handle price volatility in both base and quote currencies?A:<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>Q: How does Lambda handle withdrawals and top-ups?A:<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>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">Contact our team</a> today to learn how our staking solutions can optimize your crypto portfolio while providing unparalleled transparency into your portfolio performance.Website: <a href="https://lambda.p2p.org/?ref=p2p.org">https://lambda.p2p.org/</a><hr>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.

Kristof Kammerhofer

from p2p validator

P2P.org Makes Strategic Investment in Rakurai to Boost Solana Performance

<h2 id="tldr"> TLDR</h2><ul><li>P2P.org invests in Rakurai to enhance validator performance and increase staking returns for Solana delegators.</li><li>Rakurai's technology delivers significantly faster transaction processing compared to standard Solana clients.</li><li>The investment strengthens P2P.org's position as an innovation-focused infrastructure provider in the Solana ecosystem.</li></ul>P2P.org is excited to announce our strategic investment in Rakurai, a revolutionary Solana staking protocol that's redefining transaction throughput and validator rewards on the network. This move aligns with our ongoing commitment to enhance blockchain infrastructure and deliver superior staking solutions to our clients.<h2 id="transforming-solanas-infrastructure">Transforming Solana's Infrastructure</h2>Rakurai recently secured $3 million in seed funding led by Anagram Ventures, with participation from P2P.org, Cyber Fund, Colosseum, Slow Ventures, Robot Ventures, Crypto.com, and other strategic investors.Rakurai are in a class of its own due to their novel approach to transaction scheduling and pipeline optimization. Rakurai’s internal tests show the platform has the potential to deliver up to 5x better performance than existing Solana clients, significantly increasing transaction throughput while maintaining high quality of service.<h2 id="why-p2porg-invested">Why P2P.org Invested</h2>Our investment in Rakurai represents a strategic alignment with P2P.org's core goals of maximising returns for our clients and supporting critical infrastructure innovation. By partnering with Rakurai, we're positioning ourselves at the forefront of Solana validator optimization.Specifically, this investment will:<ol><li>Help us explore cutting-edge validator node technologies that could significantly improve staking returns</li><li>Enable P2P.org to offer enhanced transaction processing capabilities to institutional clients with high-throughput requirements</li><li>Strengthen the Solana ecosystem by supporting technology that benefits the entire network</li></ol>The potential for increased block rewards through Rakurai's optimized transaction processing aligns perfectly with our commitment to maximizing returns for our 90,000+ delegators across all networks.<h2 id="bridging-tradfi-and-defi">Bridging TradFi and DeFi</h2>The Rakurai team brings over two decades of experience in ASIC/SOC development and building ultra-low latency, high-throughput systems for algorithmic trading. Led by former <a href="https://www.linkedin.com/in/s-alirizvi?ref=p2p.org" rel="noreferrer">Apple engineer Ali Rizvi</a>, the team has already demonstrated their capabilities by winning first place in the infrastructure track of the Colosseum Renaissance Hackathon."We believe Rakurai addresses fundamental challenges that have constrained Solana's performance," said Steven Quinn, Head of Strategy at P2P.org. "By optimizing transaction scheduling and block creation, Rakurai improves network efficiency, creates substantial new value for validators and delegators, and lays the foundation for next-generation blockchain-based trading services and high bandwidth applications."<h2 id="impressive-growth-trajectory">Impressive Growth Trajectory</h2>Even amidst challenging market conditions, Rakurai has established itself as one of Solana's fastest-growing validators. Since late January, their network stake has surged by an impressive 390%, growing from approximately 17,960 SOL to over 88,080 SOL.<figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfIc30mQuxiinaaxeMfd187tmUfnh8UI-Lk9rpYvOntw7EvwCyFy6x56uWhPFDwDM11iCkwPzVON0et56VkAd4FqY3h4E63d1BYkqVA-QWn_6NKMF6XztM-rprRIyRsa6iXikt0sQ?key=uQUCh4_wT2xJOoN3KF80tR5t" class="kg-image" alt="" loading="lazy" width="1600" height="610"></figure>Img: Rukarai Stake Growth since 25th of January 2025<h2 id="looking-forward">Looking Forward</h2>Our investment in Rakurai reflects our commitment to pushing the boundaries of what's possible in blockchain infrastructure. We're excited to support the team to develop products that significantly increase Solana throughput, benefiting users, stakers, and node operators throughout the ecosystem.For Solana validators interested in boosting block rewards or applications seeking higher bandwidth, we recommend reaching out directly to the Rakurai team via Rakurai.io.<h2 id="about-rakurai">About Rakurai</h2>Rakurai is supercharging transaction landing on Solana, boosting block rewards for node operators and stakers. Their technology allows applications to increase bandwidth while drastically reducing latency. Leading web3 funds including Anagram, Cyber.Fund, Slow Ventures, Colosseum, Crypto.com, and infrastructure providers like P2P.org and GlobalStake participated in their $3M fundraise.Web: <a href="www.Rakurai.io" rel="noreferrer">Rakurai.io</a> Twitter: @Rakurai_io

Kristof Kammerhofer

from p2p validator

symbiotic Symbiotic Pre-Deposit Migration Guide: How to Move Your Assets to Live Vaults

If you're one of the early adopters who deposited assets into Symbiotic's pre-deposit vaults, it's time to consider making a move. These pre-deposit vaults served an important purpose during Symbiotic's initial launch phase, but they were never intended to be the permanent home for your assets. In this guide, we'll walk you through why you should migrate and provide a simple step-by-step process to do so.<h2 id="what-is-symbiotic">What Is Symbiotic?</h2>Before jumping into migration details, let's look at what Symbiotic actually does and why it's different from traditional staking.Think of Symbiotic as a marketplace where economic security is bought and sold. It creates a win-win situation:<ul><li>Networks that need security can purchase it.</li><li>Asset holders (like you) can earn points by providing that security.</li></ul>What makes this special is that your staked assets can secure multiple networks simultaneously. This means more efficient use of your capital and potentially better network rewards for you.Symbiotic works through three main participants:<ul><li>Stakers (you) - You provide assets through vault deposits and earn network rewards</li><li>Networks - These are blockchain projects that pay for security to operate safely</li><li>Operators - Companies like P2P.org that run the actual infrastructure and do the technical work</li></ul>To keep everything honest, independent "Resolvers" monitor the system and protect against unfair penalties. They're like the referees making sure the rules are followed.<h2 id="why-you-should-migrate-from-pre-deposit-vaults">Why You Should Migrate From Pre-Deposit Vaults</h2>Pre-deposit vaults were created as temporary holding solutions before Symbiotic's full functionality launched. Think of them as the waiting room before the main event. While your assets are safe in these vaults, they aren't working as efficiently as they could be.<h2 id="key-limitations-of-pre-deposit-vaults">Key limitations of pre-deposit vaults:</h2><ul><li>Lower point accrual rates compared to live vaults</li><li>Limited operator selection</li><li>No active participation in the network ecosystem</li><li>Reduced network reward potential</li></ul><h2 id="benefits-of-migrating-to-live-vaults">Benefits of Migrating to Live Vaults</h2>Live vaults represent a significant upgrade for your assets. Here's why moving makes sense:<ol><li>Enhanced Point Accrual Pre-deposit vaults generate fewer Symbiotic points compared to live vaults. Points are crucial for potential future ecosystem benefits.</li><li>Active Ecosystem Participation Live vaults are fully integrated into the Symbiotic ecosystem, allowing your assets to participate in securing networks and generating value.</li><li>Operator Quality Live vaults are managed by reputable operators (including P2P.org) with proven track records in the staking ecosystem. This means your assets are being leveraged by experienced infrastructure providers who maintain high uptime, implement robust security practices, and optimize for performance.</li><li>Future-Proofing As Symbiotic continues to evolve, live vaults will be first in line for new features, integrations, and opportunities.</li><li>Enhanced Capital Efficiency Live vaults implement advanced strategies to improve your capital efficiency. By optimizing how your assets are deployed across different networks within the Symbiotic ecosystem, they aim to deliver improved performance while maintaining appropriate risk parameters.</li><li>Network Diversification By moving to live vaults, your assets gain exposure to a wider range of networks within the Symbiotic ecosystem. This diversification helps spread risk while potentially increasing rewards through multiple revenue streams.</li></ol><h1 id="step-by-step-migration-guide">Step-by-Step Migration Guide</h1>Migrating your assets is a straightforward process that takes just a few minutes. Follow these steps:<h3 id="step-1-navigate-to-symbioticfi-and-click-restake">Step 1: Navigate to symbiotic.fi and click 'Restake'</h3>Begin by visiting the official <a href="http://www.symbiotic.fi/?ref=p2p.org">Symbiotic website</a> and clicking on the 'Restake' button.<h3 id="step-2-select-the-deposit-tab-in-the-top-left-corner">Step 2: Select the 'Deposit' tab in the top left corner</h3>Once you're in the restaking section, find and click on the 'Deposit' tab located in the top left corner of the interface.<figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXco_iEfa4fefvBQPON4yK9C0SMADG6fr981QG9xMvPWD5Ou4IEip58xICXORGU8fHCfw1-arldmu5DYKWs50KG1M9nas5tjDtW4zT52UzAw4751S9vBp2rK7PtWdPTycfuXv4oIkw?key=2rfROIz05zdLYp5UpBTfosTR" class="kg-image" alt="" loading="lazy" width="1600" height="883"></figure><h3 id="step-3-select-the-pre-deposit-vault-that-contains-your-funds">Step 3: Select the pre-deposit vault that contains your funds</h3>Find and select the pre-deposit vault where your funds are currently sitting. For this guide, we're using the wBTC pre-deposit vault as an example, but the process is similar for other asset types.<figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdo3jVHfx-7Kc1EO1lDZmED4sds7UYrvLVIkvkVEiSumXX7TarW6UsQAwAFLurv2A8uYgCmZg00cMTLx1Ht4e0J5JaegKU2ZPoKeVqIWh0frLkX8nTbT3PjTJ7WYQv4TOg_1hw_FA?key=2rfROIz05zdLYp5UpBTfosTR" class="kg-image" alt="" loading="lazy" width="1600" height="873"></figure><h3 id="step-4-select-migrate-to-initiate-the-migration">Step 4: Select 'Migrate' to initiate the migration</h3>Click the 'Migrate' button to begin the process of moving your funds from the pre-deposit vault to a live vault.Note: As you'll see in the interface, pre-deposit vaults earn fewer points than live vaults, making migration a priority for maximizing your benefits!<figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfDcWgUeCqb_4nHjF34tXwj3mfhr0rAY1Vnj44uLb0usNFZAKSVIazpVtnTv7-8YNB3iEGE4IE9arOz-vHEICmmE9IjscMDkqylUDcagcW8bVNmxuHL4dHCJEVeEdc4Pty-qTC4SA?key=2rfROIz05zdLYp5UpBTfosTR" class="kg-image" alt="" loading="lazy" width="1600" height="873"></figure><h3 id="step-5-review-available-live-vaults">Step 5: Review available live vaults</h3>After selecting 'Migrate', Symbiotic's UI will display all the public/live vaults available for your specific asset. In our example, it will show the public wBTC vaults available for migration.<figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdlcHe0eIQ3q_ZeoAkTO77Pdk532_i_Ipx7OAjrpn6d1gd9i8calfh7Of5Hg2ckrRHdj7i3HmMvOnm1d6awD2hcg5z4mGb9DJ7K289gnQY_sel7XPeSeJckX2Yqo6TNOQCjrLt_?key=2rfROIz05zdLYp5UpBTfosTR" class="kg-image" alt="" loading="lazy" width="1600" height="867"></figure><h3 id="step-6-select-your-preferred-vault">Step 6: Select your preferred vault</h3>Choose the vault that best aligns with your preferences. If you're unsure, consider vaults with reputable operators like P2P.org for optimal performance.<figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcR5mvazNyzCwDlOuqXFeImJOXzZj49a3Smxw6JuE068L3MYRcIlXSPS-_Soq0qGwEx2HX6Z6bq2IF9mVtM26nRAp90sFtMK5HDlZCAxW9kvArr4JMNdeodjjfXfv_vdrk_VG1Y?key=2rfROIz05zdLYp5UpBTfosTR" class="kg-image" alt="" loading="lazy" width="1600" height="648"></figure><h3 id="step-7-connect-your-wallet">Step 7: Connect your wallet</h3>If you haven't connected your wallet already, you'll be prompted to do so at this stage.<figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXd3X5RBuOk6AsiaFLWeDcAYWQZG-iIcM0ysb5JUHyXG54_DLJPiQvLdYyUx43hKXMYuXOmxu2KbcBKNxUK8eCdlZUG8yoXkj6ihano-Ilxsl5PLoDEOVYmC24OQH5cSDWlOQTKE?key=2rfROIz05zdLYp5UpBTfosTR" class="kg-image" alt="" loading="lazy" width="1600" height="882"></figure><h3 id="step-8-select-the-migrate-option">Step 8: Select the 'Migrate' option</h3>On the vault page, look for the 'Migrate' option (typically found alongside 'Deposit' and 'Withdraw' options) and select it.<figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfvnFTO1bTleJf5H0XPPYunzxwNSoTZ9tv6rPoxl9R604s008WVs5-_v38K42QtZ-WjzHt-D0BlF2_SzeFWOMM4CaQ6hoEA-HI7kNwxkbKSsaWvZWNDJHaEEUgJn7Ck5UrWEbrBSg?key=2rfROIz05zdLYp5UpBTfosTR" class="kg-image" alt="" loading="lazy" width="1600" height="869"></figure><h3 id="step-9-enter-migration-amount-and-confirm">Step 9: Enter migration amount and confirm</h3>Input the amount you want to migrate, then click the green 'Migrate' button to initialize the transaction.<figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcVu1y6xYeAJ1vnzkvTVJZ9PZwXo0YzsWjN1FZba0ucfQ1jrhVf0LDW32G2lVVj3pE9KRm9Va1xdSGFZYvKsBw2Px-zEmJkpFGKmcfg4ChUzZ8BukTslJipJc5cLSAoEl_TE_Gr?key=2rfROIz05zdLYp5UpBTfosTR" class="kg-image" alt="" loading="lazy" width="1600" height="880"></figure><h3 id="step-10-approve-and-finalize-the-transaction">Step 10: Approve and finalize the transaction</h3>Grant the necessary permissions in your wallet when prompted, and confirm the transaction to complete the migration process.<figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfHvlt_zOUlMBxXu5RzhFzCC99HpraHtvztAowYAMcEglL4kGe6Gyft37JUzydZzlj0bLykBc1Q3mWl7CF-jPsagWBm4vbunf--xAdasPZiFqCqyonPjnxXNCU9405h95hXkPnyyQ?key=2rfROIz05zdLYp5UpBTfosTR" class="kg-image" alt="" loading="lazy" width="1600" height="877"></figure>Congratulations! Your assets are now working more efficiently in a live vault.<h2 id="frequently-asked-questions">Frequently Asked Questions</h2>Q: Will I lose my accrued points when migrating? A: No, all points you've earned will remain associated with your wallet address.Q: Are there fees for migration? A: You'll only pay standard network gas fees for the transaction.Q: Can I migrate partial amounts? A: Yes, you can choose exactly how much you want to migrate.Q: Is there a deadline for migration? A: While there's no hard deadline, migrating sooner means you'll start earning enhanced benefits faster.Q: How does Symbiotic's architecture ensure security? A: Symbiotic utilizes a resolver system that monitors and validates activities across all connections. Resolvers have veto power over invalid slashing attempts, providing an additional layer of protection for your staked assets.<h2 id="third-party-incentives">Third-Party Incentives</h2>For additional details, visit Symbiotic.fi. Please note that P2P.org does not manage or take responsibility for these incentive programs.<h2 id="risks-assessment">Risks assessment </h2>This information is provided for general purposes only and reflects P2P.org’s subjective view of the project. It is not professional financial advice. Before deciding to participate, you should carefully review all materials on the Mellow and Symbiotic websites, thoroughly evaluate the associated risks, and consult with appropriate legal, financial, and tax advisors. Failure to do so may result in significant financial losses, P2P.org will not be held liable for any decisions made based on the information provided. Proceed at your own risk.Audited Smart Contracts: Symbiotic and Mellow smart contracts have been audited. The reports are available here and here.Immutable Symbiotic Contracts: Symbiotic smart contracts cannot be changed by the Vault curator.P2P.org is a leading node operator and early supporter of Symbiotic. While we believe migration to live vaults is beneficial for users, this article is provided for educational purposes only and should not be considered financial advice.

Kristof Kammerhofer

from p2p validator

Ethereum Playing it Safe: How Ethereum's New Staking Model Protects Conservative Stakers

This blog was written based on Pavel Iashin's <a href="https://purple-sea-cb0.notion.site/Max-Effective-Balance-Increase-Slashing-Risks-in-Pectra-14df8e6f8ab580e4a484d7da4b56dfd1?ref=p2p.org">research on MEB and slashing risks in Pectra</a>.<h2 id="tldr">TLDR</h2><ul><li>The Pectra upgrade reduces Ethereum slashing penalties for single validators by up to 128x, making staking a safer and more attractive option for all stakers. </li><li>P2P.org offers a range of variable risk/reward staking solutions, offering strategies based on your unique risk tolerance</li><li>With advanced slashing protection and professional management, P2P.org ensures Ethereum staking is secure and optimized for the best possible returns.</li></ul>Ethereum staking will change drastically with the upcoming Pectra upgrade, which is expected to go live in April 2025. The upgrade offers a significant opportunity for stakers, introducing more flexibility in balancing risk and reward. For the first time, stakers can dramatically reduce their exposure to penalties while maintaining attractive yields. At P2P.org, we're ready to help you understand and utilize these changes with personally tailored staking solutions designed around your individual risk tolerance.This new era of Ethereum staking combines security with improved returns – a combination that was previously impossible to achieve. Whether you're a conservative staker seeking maximum protection or a growth-oriented staker looking to optimize, the Pectra upgrade opens up new possibilities for customizing your staking strategy.<h3 id="eip-7251-in-a-nutshell">EIP-7251 in a nutshell</h3><a href="https://eips.ethereum.org/EIPS/eip-7251?ref=p2p.org">Ethereum Improvement Proposal #7251</a>, also known as the Maximum Effective Balance (MEB) Increase, will address the inefficiencies of the current Ethereum staking design. This update will enable allocating up to 2048 ETH for a single validator alongside other important improvements and changes, such as auto-compounding and validator consolidations. We have shared more information about the upcoming changes in validator economics in our <a href="https://p2p.org/economy/ethereum-pectra-upgrade-a-shift-in-staking-mechanics/">recent blog post</a> about the upgrade.<figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXej2CRaaVhdnN3nzl0Ybcy86XlgGHRk-qT40cdnf-QXcmmTqeS5rzwPdGRoV1IsKMS1Nk343WCQfhHALbpMn-daV2Yr2stb8fOrxgYsU65nhsbcJKLd5yIinjgwM2M1QV_MkTlxOg?key=Z5eK-GkRd-O7PM9Klu8-_q4d" class="kg-image" alt="" loading="lazy" width="1218" height="964"></figure>Img: Increased validator balance of up to 2048 ETH<h2 id="understanding-slashing-what-you-need-to-know">Understanding Slashing: What You Need to Know</h2>Think of slashing as Ethereum's security system – it's a protective measure that helps maintain the network's integrity by penalizing validators who break the rules, whether intentionally or due to technical issues. Under the current system, these penalties can be significant, but the Pectra update is about to change that in your favor.<h3 id="why-does-slashing-happen">Why Does Slashing Happen?</h3>Slashing occurs in three specific situations, and understanding them helps explain why professional management is crucial:Double Proposals (Proposing two different blocks for the same slot)<ol><ul><li>Think of this as sending two different versions of the same email. This usually happens due to technical issues with the validator setup such as using the same keys in multiple setups.</li><li>Professional operators like P2P.org have sophisticated systems to prevent this.</li></ul></ol>Double Voting (Two different votes in the same slot)<ol><ul><li>Similar to marking two different answers on a test. This is the most common cause of slashing.</li><li>This usually also occurs when the same keys are used in multiple setups or the validator software has database issues.</li></ul></ol>Instead of handling raw keys (which creates risk), we implement Threshold Signature Schemes (TSS), which split one validator key into three separate shards, requiring any two shards to create a valid signature. This 2-of-3 approach provides:<ol><ul><ol><li>Enhanced security: No single point stores the complete key</li><li>Operational flexibility: Enables node maintenance without missing attestations</li><li>Failover protection: The system remains operational even if one shard is compromised.</li></ol></ul></ol>Surround Voting (Making conflicting votes about the chain's history)<ol><ul><li>This is like giving contradictory testimonies about the same event.</li><li>This can happen if a validator either has a database problem, uses multiple keys, is affected by a bug, or is involved in malicious activity.</li><li>Professional management ensures proper synchronization at all times.</li></ul></ol>The good news? When it comes to slashing incidents, the data is reassuring: 90% are caused by double voting, 10% by double proposals, and none by surround voting. These incidents are extremely rare and typically occur when validator keys are mistakenly used across multiple validators. Working with professional operators who follow strict security protocols virtually eliminates these risks. At P2P.org, we have:<ul><li>Advanced slashing protection systems</li><li>Real-time 24/7 monitoring of validator performance</li><li>Immediate response protocols for any anomalies</li><li>Regular system audits and updates</li></ul><div class="kg-card kg-button-card kg-align-center"><a href="https://www.p2p.org/networks/ethereum?ref=p2p.org#form" class="kg-btn kg-btn-accent">Start Staking with P2P.org</a></div><h3 id="how-slashing-works">How Slashing Works</h3>Slashing is Ethereum's security mechanism that penalizes validators who break protocol rules. When a violation occurs, three distinct penalties come into play:<ol><li>The Initial Penalty is applied immediately when a violation is detected. Currently, it's set at 1 ETH for every 32 ETH staked. This acts as the immediate consequence for breaking protocol rules.</li><li>The Inactivity Penalty accumulates during the withdrawal period because the validator can no longer perform their duties. For a 32 ETH validator, this is currently around 0.057 ETH (as of February 2025), though the exact amount depends on the total effective balance of all validators in the network.</li><li>The Correlation Penalty increases if other validators are slashed within an 18-day window before or after the incident. This design protects against coordinated attacks by making group slashing events exponentially more expensive than isolated incidents.</li></ol>When a validator commits a violation, another validator must spot it and submit proof. Once the network confirms the violation, the initial penalty is applied immediately, and the forced withdrawal period begins. During this time, the blockchain monitors for other slashing events that might trigger correlation penalties. This creates a balanced approach where technical issues face lighter penalties, while coordinated misbehavior receives harsher treatment.<h3 id="what-changes-with-pectra">What Changes with Pectra?</h3>With the Pectra upgrade, we will experience a shift in how Ethereum handles slashing penalties, making staking significantly safer for participants:<h3 id="understanding-the-components">Understanding the Components </h3>With the upcoming Pectra upgrade, all three components of slashing are going to change:The Initial Penalty will be reduced from 1 ETH to 0.0078125 ETH per 32 ETH validator. This means that small technical mistakes or isolated incidents become far less costly. For a validator with 2048 ETH (the new maximum), the initial penalty would be 0.5 ETH - still significant but much smaller than under the current system.The Inactivity Penalty remains proportional to the validator's effective balance and continues through the 36-day withdrawal period. For context, with approximately 33.3M ETH staked (as of February 2025), a 32 ETH validator would face approximately 0.057096 ETH in inactivity penalties, while a 2048 ETH validator would see about 3.654152 ETH. These numbers vary based on changes in the total amount of ETH staked and base reward parameters.The Correlation Penalty is where Pectra introduces improvements to maintain network security while being fairer to validators. The current system's correlation penalty can be uneven due to integer division effects, but Pectra implements a new formula that ensures proportional penalties regardless of validator size. This means a single 2048 ETH validator will face the same correlation penalty as sixty-four 32 ETH validators if the same total stake is affected.<h3 id="real-world-impact">Real-World Impact</h3>Current System:<ul><li>A slashing incident affecting 32 ETH results in approximately 1.05 ETH in total penalties</li><li>This represents about 3.28% of the staked amount</li></ul>After Pectra:<ul><li>The same incident would result in only about 0.06 ETH in penalties</li><li>This represents just 0.19% of the staked amount</li></ul>This reduction in penalties won’t compromise network security because the correlation penalty still provides adequate protection against large-scale attacks. If a significant portion of validators (approaching 1/3 of total stake) are slashed simultaneously, the penalties can still result in complete stake loss, effectively deterring coordinated malicious behavior.This is a risk reduction that makes staking significantly safer for conservative investors. When combined with P2P.org's professional management and customized risk assessment, you get a sophisticated level of protection for your stake.<figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXf5ZLIFO15ECwt9FVGVzP_8QdR2KMdp5meyM2c1MYDvrtnQuzMNo6F9KEpq0HbHLb-etLppP7r96_uF_2NcJE7gNYJH6qCDZbjNv5ctr_JCI-Ktw0N-rcExXzneLB9StmHu-q91ow?key=Z5eK-GkRd-O7PM9Klu8-_q4d" class="kg-image" alt="" loading="lazy" width="1600" height="788"></figure>Img: Comparison of Pre-Pectra and Post-Pectra penalties<h2 id="why-professional-management-matters">Why Professional Management Matters</h2>The importance of professional validator management becomes clear when we examine the data on slashing incidents. According to our models, the time taken to respond to an incident significantly impacts the amount of stake affected. For a 4096 ETH cluster, a 25-minute response time results in about 0.02% of stake being affected, while a slower 3-hour response increases this to around 0.1% - a fivefold increase in impact.This difference becomes even more striking when we look at pre-Pectra penalties. The same scenarios under current rules would result in penalties of 12 ETH for quick responses versus 52 ETH for slower responses, with a significant portion coming from the initial penalty. Even though Pectra reduces the initial slashing penalty dramatically (from 1 ETH to 0.0078125 ETH for 32 ETH validators), the speed of response remains crucial.Professional management makes a substantial difference in minimizing these risks. Automation tools can reduce response time to a single slot, significantly decreasing the potential for subsequent slashing events. This is particularly important because slashing incidents typically begin with an "alerting event" followed by potential "subsequent slashing events" that continue until the issue is resolved.The data shows that professional management with rapid response capabilities is crucial in reducing their impact when they occur. This becomes even more important in Pectra's environment of consolidated validators, where a single incident could affect larger amounts of stake.After all, prevention is still the best strategy. That's why P2P.org:<ul><li>Uses battle-tested validator software</li><li>Maintains separate databases for each validator group</li><li>Provides 24/7 technical monitoring</li><li>Offers rapid response to any potential issues</li></ul><h2 id="risk-management-with-p2porg">Risk Management with P2P.org</h2>At P2P.org, we understand that every staker has unique needs and concerns. That's why we:<ul><li>Conduct detailed risk assessment consultations with each client</li><li>Design personalized staking strategies based on your specific risk tolerance</li><li>Provide ongoing risk monitoring tailored to your comfort level</li><li>Adjust strategies as your risk tolerance evolves</li></ul><div class="kg-card kg-button-card kg-align-center"><a href="https://www.p2p.org/networks/ethereum?ref=p2p.org#form" class="kg-btn kg-btn-accent">Start Staking with P2P.org</a></div><h2 id="your-next-steps">Your Next Steps</h2>If you've been waiting for the right time to stake your ETH, the Pectra update provides the security and peace of mind you've been looking for. P2P.org's personalized approach ensures you get a staking solution that perfectly matches your risk tolerance.Ready to start staking with peace of mind? Contact P2P.org's team to schedule your personal risk assessment consultation and learn how you can adjust your staking strategy specifically to your needs.

Kristof Kammerhofer

from p2p validator

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