bbSOL Jito (re)estaking is Now Live!

<h2 id="tldr"><strong>TLDR</strong></h2><ul><li><em>The Ethereum Pectra upgrade in March 2025 will introduce major improvements, including larger validators (up to 2048 ETH), auto-compounding, and enhanced staking efficiency.</em></li><li><a href="P2P.org" rel="noreferrer"><strong><em>P2P.org</em></strong></a><em><strong> is fully prepared for these changes</strong>, integrating Pectra’s features into our dApp, API, and staking services to increase rewards and streamline validator management.</em></li><li><em>By transitioning with P2P.org, stakers can optimize NRR (Network Reward Rate), reduce operational complexity, and take full advantage of Ethereum’s most significant upgrade.</em></li></ul><p>Mark your calendars for <strong>March 2025</strong>— One of the largest upgrades in Ethereum’s history is about to be released. The Pectra upgrade represents a complete reimagination of staking mechanics, unlocking new opportunities for <strong>validators, intermediaries, and DeFi users.</strong></p><p>As one of the <strong>largest non-custodial staking providers</strong>, <strong>P2P.org</strong> has worked hard over the last six months to prepare for and extensively test the upcoming changes, ensuring that our user base receives the best service and exceptional performance.&nbsp;</p><p>We are ready to provide our users with everything that will provide significant improvements, from <strong>automatic compounding to updated validator economics. </strong>This blog post will dive deeper into the upcoming changes and how the Pectra upgrade will enhance Ethereum staking.</p><h2 id="redefining-validator-economics-the-foundation-of-pectra"><strong>Redefining Validator Economics: The Foundation of Pectra</strong></h2><p>At the core of Pectra is <a href="https://eips.ethereum.org/EIPS/eip-7251?ref=p2p.org"><strong><u>EIP-7251</u></strong></a>, a fundamental restructuring of validator economics. This proposal introduces <strong>validators with Max Effective Balances (MEB) of up to 2048 ETH</strong>, compared to today’s rigid 32 ETH limit.&nbsp;</p><p>While these enhanced validators maintain the standard attestation frequency of once per epoch (384 seconds), their attestations carry proportionally greater weight—up to 64 times more than a standard 32 ETH validator. This means that a 2048 ETH validator has the same voting power as 64 individual 32 ETH validators, significantly increasing its influence in finalizing blocks and improving consensus efficiency. Additionally, the probability of block proposals scales proportionally, allowing larger validators to propose blocks more frequently while maintaining Ethereum’s overall security and decentralization.</p><p>This can be illustrated in a simple real-life example:</p><p><em>Twenty independent <strong>32 ETH validators</strong> will generate the same rewards as a <strong>single 640 ETH validator</strong>.</em></p><p>Operators can drastically reduce operational costs with this upgrade, translating into higher profitability. By optimizing validator economics in this way, we’re paving the way for <strong>more competitive</strong> staking opportunities. As a result, we are positioned to <strong>offer the best NRR (Network Reward Rate) in the market</strong>.</p><h2 id="auto-compounding-unlocking-exceptional-nrr-and-staking-efficiency"><strong>Auto-Compounding: Unlocking exceptional NRR and Staking Efficiency</strong></h2><p>One of the most significant user-facing changes with Pectra is the introduction of <strong>auto-compounding for Consensus Layer rewards</strong>. This feature can be enabled by either consolidating two 0x01 validators into one 0x02 validator, updating credentials on an existing validator, or spinning up a new 0x02 one. For our <strong>dApp</strong>, we are introducing <strong>intuitive validator merging flows</strong>, allowing users to <strong>batch-merge existing validators</strong> (since Pectra’s smart contracts currently permit only two at a time).&nbsp;</p><p>Previously, Consensus layer rewards (which account for <strong>~75% of total staking rewards</strong>) were sent directly to withdrawal addresses. With the new <strong>0x02 validators</strong>, these rewards are automatically re-delegated into the validator, providing the opportunity to produce extra returns and enhance long-term NRR.&nbsp;</p><h3 id="the-benefits-of-auto-compounding"><strong>The benefits of auto-compounding:</strong></h3><p>For Validators operating at <strong>base ETH (CL+EL) NRR of 3.2%</strong>, auto-compounding gradually increases staking returns, for example:</p><ul><li>After 1 year, APR can rise to approximately<strong> 3.24%</strong></li><li>After 5 years, APR approximately increases to<strong> 3.42%</strong></li></ul><p>While these numbers may seem marginal, the <strong>cumulative effect is substantial</strong>. Over five years, an auto-compounded validator <strong>generates approximately 5.47 ETH</strong>, compared to <strong>5.12 ETH for a non-compounded validator</strong>. With ETH at current market prices, this difference <strong>translates to over $1,000 in additional rewards from the network per validator</strong>.</p><p>However, there is a <strong>critical threshold</strong>—auto-compounding only works if the validator remains <strong>below 2048 ETH</strong>. Once this limit is reached, all rewards will be distributed to the withdrawal address, effectively stopping the compounding effect.</p><p>To maintain auto-compounding for as long as possible, P2P.org will cap the maximum validator balance at 1,920 ETH, providing a runway of <strong>over two years before reaching the limit</strong>. This strategic approach ensures that users can continue to be eligible for returns and <strong>stake efficiently without interruptions</strong>. By setting this cap, we can maintain a consistent and sustainable growth model, allowing us to provide optimal returns during this timeframe. This ensures that our users not only have a reliable staking experience but also benefit from optimized returns over the long term, with <strong>no concerns about disruption in returns</strong>.</p><figure class="kg-card kg-image-card"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcUcPYRWl6RRQnWRgDzm_yQuOgDYzxOvIb211j-6VZSQreSMhncEVY8yBBaWbNuY6CoIIHbmUvcDwe_FkzuSBF1nuFh-1qeMZjXg3jobpbtMlkaXj_S-Z3QiZStaSkG379XjAtC?key=tD7TinndwUWXMIxFWc2Iy7g9" class="kg-image" alt loading="lazy" width="1181" height="636"></figure><p></p><p><strong>Partial Withdrawals</strong></p><p>Another key feature of Pectra is the ability to perform partial withdrawals. Unlike the previous system, where users would need to fully exit their 32 ETH validator to withdraw a significant portion of their staked ETH, partial withdrawals now allow users to remove a portion of their balance while the validator remains active.&nbsp;</p><p>For example, if you have 64 ETH staked, you can now withdraw 20 ETH without needing to exit the validator entirely. This increased flexibility ensures that users can manage their staked ETH more efficiently, giving them more control over their assets without compromising their staking participation.</p><h2 id="the-roadmap-to-higher-nrr"><strong>The Roadmap to Higher NRR&nbsp;</strong></h2><p>P2P.org’s <a href="https://eth.p2p.org/auth?ref=p2p.org"><u>Ethereum staking suite</u></a> is already designed to provide <strong>flexible and high-performance staking solutions</strong> through our <strong>dApp, API, and DVT API</strong> (optimized for SSV-based distributed validators and additional reward mechanisms). After the Pectra upgrade, API and dApp native stakers will be able to access its core features, including Max Effective Balance increases, auto-compounding, and partial withdrawals - for restaking and other strategies, we need to wait on 3rd party timelines and implementations.&nbsp;</p><p>This means developers and institutional stakers can easily implement Pectra’s benefits into their day-to-day operations.</p><h3 id="the-transition-to-pectra-with-p2porg"><strong>The transition to Pectra with P2P.org</strong></h3><p>To ensure a smooth transition for all our staking users and newly onboarded clients, our engineering teams are working on the following:</p><ul><li><strong>Developing new user flows</strong> for merging validators under Pectra’s new staking mechanics.</li><li><strong>Enhancing monitoring tools and security protocols</strong> to adapt to the new validator structure.</li><li><strong>Implementing sophisticated compounding mechanisms</strong> to leverage Pectra’s economic model fully.</li></ul><h3 id="where-we-are-right-now"><strong>Where we are right now</strong></h3><p>Our roadmap to being the provider with the <strong>highest NRR </strong>&nbsp;and <strong>exceptional Execution Layer rewards</strong> includes:</p><ul><li>Initiatives to increase execution layer reward strategies for all our validator setups.</li><li>Collaborating on Mainnet releases with preconfirmation protocols like <a href="https://cyber.fund/content/bolt?ref=p2p.org"><u>Bolt</u></a>, <a href="https://docs.ethgas.com/?ref=p2p.org"><u>ETHGas</u></a>, and <a href="https://primev.xyz/?ref=p2p.org"><u>Primev</u></a> to increase rewards.</li><li>Significantly increase the returns and boosts on <a href="https://www.p2p.org/products/dvt-staking?ref=p2p.org"><u>DVT validators</u></a>.</li></ul><p>Since its inception in 2018, <a href="P2P.org" rel="noreferrer"><strong>P2P.org</strong></a><strong> has consistently prioritized performance optimization</strong>, and in 2024, we have made significant strides toward becoming the <strong>best-performing staking operator on Ethereum</strong>. Our commitment to excellence is reflected in our #1 ranking for 7-day and 30-day RAVER effectiveness among node operators with over 1% market share. Among the largest Ethereum staking providers, we lead in performance, ensuring <strong>maximum efficiency and reliability</strong> for our validators.</p><p>Looking ahead to Q2 2025, we plan to further solidify our position across the entire validator ecosystem through architectural enhancements and collaborations, particularly with SSV-based distributed validator technology (DVT). These improvements will drive greater decentralization, resilience, and efficiency, reinforcing our status as a top-tier staking operator.</p><h2 id="strategic-implications-for-ethereum-stakers-and-institutions"><strong>Strategic Implications for Ethereum Stakers and Institutions</strong></h2><p>For institutional stakeholders, Pectra represents a <strong>major strategic shift</strong> that requires preparation. <strong>Consolidating validator operations while maintaining equivalent rewards</strong> from the network presents <strong>compelling efficiency increases</strong> for large-scale stakers.</p><p>P2P.org can support you during the transition to Pectra, particularly in areas such as:</p><ul><li>Migrating existing validators to the new MEB framework</li><li>Implementing auto-compounding mechanisms for higher NRR&nbsp;</li></ul><p></p><p><strong><em>The transition to Pectra is your opportunity to increase staking efficiency.&nbsp;</em></strong></p><p><strong>P2P.org is leading this transition</strong>, ensuring our infrastructure, staking services, and validator strategies are fully optimized for Pectra. As March 2025 approaches, we will continue to <strong>guide stakers through this transformation</strong>, offering the <strong>tools, insights, and infrastructure</strong> needed to fully capture the benefits of Ethereum’s most significant upgrade of the year.</p><p>For a full breakdown of our current performance rankings, visit<a href="https://explorer.rated.network/explorer?network=mainnet&view=nodeOperator&timeWindow=7d&page=1&pageSize=15&ref=p2p.org"> <u>Rated Explorer</u></a>.</p>

<p>P2P.org is excited to walk you through an exciting opportunity from Re7 Labs- the rstETH vault, a liquid restaking solution built on the Mellow protocol.</p><p><strong>Understanding the rstETH Vault</strong></p><p>The rstETH vault is curated by Re7 Labs and built on the Mellow protocol, offering an innovative approach to liquid restaking. Mellow provides both a user-friendly interface and the underlying protocol infrastructure, enabling the creation of Liquid Restaking Tokens (LRTs).</p><p>At the core of the vault's functionality is Symbiotic - a permissionless restaking protocol that offers flexible mechanisms for decentralized networks to coordinate node operators and security providers. The protocol's flexible and neutral design provides unique benefit for Mellow users.</p><p>Mellow allows the permissionless creation of modular LRTs (Liquid Restaking Tokens). It offers a series of vault smart contracts with different and unique properties, managed by LRT curators. One of these LRTs is rstETH, which represents an innovative approach to liquid restaking. When you deposit assets into the rstETH Vault, Mellow's smart contract mints LRT tokens at your request. The amount of rstETH tokens you will receive is almost equivalent to a 1:1 wstETH:rstETH ratio.<br></p><p><strong>Restaking flow on the </strong><a href="http://rsteth.mellow.finance/?ref=p2p.org"><strong><u>Mellow</u></strong></a><strong> side</strong></p><p>Follow these three steps to begin your restaking journey with the rstETH vault.<br><strong>Here's how to get started:</strong><br></p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2025/01/rstETH-steps.jpg" class="kg-image" alt loading="lazy" width="2000" height="418" srcset="https://p2p.org/economy/content/images/size/w600/2025/01/rstETH-steps.jpg 600w, https://p2p.org/economy/content/images/size/w1000/2025/01/rstETH-steps.jpg 1000w, https://p2p.org/economy/content/images/size/w1600/2025/01/rstETH-steps.jpg 1600w, https://p2p.org/economy/content/images/2025/01/rstETH-steps.jpg 2000w" sizes="(min-width: 720px) 720px"></figure><p><strong>Let’s dive deeper into the details.</strong></p><ol><li>Go to the rstETH restaking Vault page:<br><a href="https://rsteth.mellow.finance/?ref=p2p.org"><u>rstETH.mellow.finance</u></a></li></ol><p><img src="https://p2p.org/economy/content/images/2025/01/1_mainpage-1.png" alt="1_mainpage.png" loading="lazy"></p> <ol start="2"> <li> <p>Connect your wallet, review, and confirm the terms.<br> <img src="https://p2p.org/economy/content/images/2025/01/2_login.png" alt="2_login.png" loading="lazy"></p> </li> <li> <p>Choose the tokens you want to deposit and proceed (note that your tokens will be converted to wstETH).<img src="https://p2p.org/economy/content/images/2025/01/4_select_currency.png" alt="4_select_currency.png" loading="lazy"></p> </li> <li> <p>Click the deposit button and follow the prompts to sign the transactions. This will wrap your stETH into wstETH and deposit it into the Vault.<br> <img src="https://p2p.org/economy/content/images/2025/01/5_enter_amount.png" alt="5_enter_amount.png" loading="lazy"></p> </li> <li> <p>Congratulations!🎉 As a result, you receive rstETH.</p> </li> <li> <p>You can put your rstETH to work and unlock the opportunities offered by Mellow Your rstETH tokens are compatible with a wide range of DeFi protocols.</p> </li> <li> <p>Now, click on the protocol where you’d like to use your rstETH. For example, let’s select GearBox.<br> Be cautious, as you’ll be redirected to the protocol’s official website. In this case, it will be: <a href="https://app.gearbox.fi/?ref=p2p.org">https://app.gearbox.fi</a></p> </li> </ol> <p><img src="https://p2p.org/economy/content/images/2025/01/image--16-.png" alt="image (16).png" loading="lazy"></p> <p>a) Click on the protocol where you’d like to use your rstETH. For example, let’s select Gearbox Protocol.</p> <p>b) Review the terms, parameters, strategy, and any other features the protocol offers to get the most of your rstETH. Remember, the metrics are only estimations, so take the time to assess everything carefully and ensure they align with your goals before proceeding.</p> <p>c) Please pay attention that behind the scenes, the protocol will borrow wstETH to put them into the rstETH vault. And the looping strategy in general, works only when borrow rate is lower than token base status.</p> <p>d) It is important to thoroughly understand the risks associated with looping strategies before using this service. To make the strategy better, Gearbox uses the mint price from the rstETH contract instead of DEX-based price feed.</p> <p>e) Once you’ve reviewed all the details and feel confident about moving forward, follow these steps: connect your wallet, specify the amount of rstETH you want to deposit, adjust the parameters if needed, and click the “Deposit” button to finalize your transaction. Make sure to double-check everything before confirming.</p> <p>f) Now, you can take advantage of the potential benefits provided by the rstETH protocol and its restaking strategy, while accessing the potential benefits from Gearbox (in this example).</p> <p><strong>What is </strong><a href="https://symbiotic.fi/?ref=p2p.org"><strong><u>Symbiotic</u></strong></a><strong> and why is it important in this vault?</strong><br>Symbiotic is a permissionless restaking protocol designed to support decentralized networks by aligning node operators and security providers. According to Symbiotic, the importance of this vault lies in its ability to provide a secure, adaptable and efficient restaking framework.<br><br><strong>The protocol’s versatile and neutral design delivers unique opportunities :</strong></p><ul><li>Immutable core smart contracts on Ethereum.<br></li><li>Flexibility for all ecosystem players: Network builders control their restaking implementation, operator selection mechanics, and reward and slashing logic.<br></li><li>Capital-efficient multi-asset design.</li></ul><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2025/01/image--17-.png" class="kg-image" alt loading="lazy" width="2000" height="938" srcset="https://p2p.org/economy/content/images/size/w600/2025/01/image--17-.png 600w, https://p2p.org/economy/content/images/size/w1000/2025/01/image--17-.png 1000w, https://p2p.org/economy/content/images/size/w1600/2025/01/image--17-.png 1600w, https://p2p.org/economy/content/images/2025/01/image--17-.png 2000w" sizes="(min-width: 720px) 720px"></figure><p><strong>What is </strong><a href="https://mellow.finance/?ref=p2p.org"><strong><u>Mellow</u></strong></a><strong>?</strong><br>Mellow is a modular infrastructure designed for creating Liquid Restaking Tokens (LRTs) with varying strategic frameworks. The system is fully permissionless, agnostic to underlying restaking protocols, and compatible with any assets.</p><p><strong>Key Highlights:</strong><br> <strong>•</strong> <strong>Flagship LRT for Symbiotic: </strong>Mellow will become the first and flagship LRT within the Symbiotic ecosystem.</p><p> <strong>•</strong> <strong>Security Approved: </strong>As a member of the Lido Alliance, Mellow has successfully passed<a href="https://research.lido.fi/t/mellow-lido-alliance-proposal/7557/11?u=vladismint&ref=p2p.org"> <u>security evaluations</u></a> by the Alliance group.</p><p> • <strong>Strong Backing:</strong> Mellow’s 2021 fundraising round was led by Arrington Capital, ParaFi, and Robot VC, with contributions from Lemniscap, Primitive, and other notable VCs.</p><p><strong>Why Mellow?</strong><br>According to Mellow, their team has extensive expertise in developing advanced vaults and liquidity management systems. They highlight their experience in bootstrapping wstETH liquidity on mainnet for Lido and collaborating with leading protocols like Olympus, Velodrome, Aerodrome, Gearbox, and zkBob, where they’ve delivered sophisticated assets and ALM strategies.</p><p><strong>Third-Party Incentives</strong><br>For additional details, visit<a href="https://app.mellow.finance/restake?ref=p2p.org"> <u>Mellow.Finance</u></a> and<a href="https://app.symbiotic.fi/restake/wsteth/?ref=p2p.org"> <u>Symbiotic.Fi</u></a>. Please note that<a href="http://p2p.org/?ref=p2p.org"> <u>P2P.org</u></a> does not manage or take responsibility for these incentive programs.</p><p><strong>Risks assessment&nbsp;</strong><br>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,<a href="http://p2p.org/?ref=p2p.org"> P2P.org</a> will not be held liable for any decisions made based on the information provided. Proceed at your own risk.</p><p> • <strong>Audited Smart Contracts:</strong> Symbiotic and Mellow smart contracts have been audited. The reports are available<a href="https://github.com/symbioticfi/collateral/tree/main/audits?ref=p2p.org"> <u>here</u></a> and<a href="https://github.com/mellow-finance/mellow-lrt/tree/main/audits?ref=p2p.org"> <u>here</u></a>.</p><p> • <strong>Immutable Symbiotic Contracts:</strong> Symbiotic smart contracts cannot be changed by the Vault curator.</p><p> • <strong>Controlled Upgrades for Mellow Contracts:</strong> Mellow smart contracts are upgradable,<a href="http://p2p.org/?ref=p2p.org"> <u>P2P.org</u></a> as the Vault co-curator cannot modify the Vault contract or withdraw user funds. The responsibility for upgrades lies with a Lido &amp; Mellow-managed multisig, meaning the primary risk relates to the security of that multisig.</p><p><em>Guide by: Denis Kozlov</em></p>