Chainlink Chainlink Insights: an analysis of Oracle's revenue and performance

<h3 id="intro">Intro</h3><p>Everyone is always looking for ways to improve their finances and we often hear that staking in crypto can't be profitable and stable during the bear market. At P2P we think that it depends on how effectively your staking provider uses the infrastructure.</p><p>Today we want to share the story of how we became a successful Node operator (NOP) on Chainlink by continuously improving our performance metrics. We will also talk about Chainlink’s oracle network, its current state and how NOPs can get a stable revenue even during a bear market.</p><h3 id="what-is-chainlink-oracle-network">What is Chainlink oracle network?</h3><p>Chainlink is the market-leading decentralised oracle network providing real-world data to smart contracts on any blockchain. Currently, Chainlink supplies data for DeFi consumers across 14 networks:</p><ol><li>Ethereum: Mainnet, Goerli, Kovan, Rinkeby, Ropsten</li><li>Avalanche</li><li>Binance SM</li><li>Optimism</li><li>Arbitrum</li><li>Fantom</li><li>Harmony</li><li>Moonriver</li><li>Moonbeam</li><li>Metis</li><li>Heco</li><li>Polygon</li><li>xDai</li><li>Solana</li></ol><p>Ethereum registered the highest number of working oracles during 2022.</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/ko4Q_PCIn7OB4WTIL_bSQUuTWml5S6uWUMEHHijYiDy1_dbXi3DoPdJVMkniYsriQkhfi1q0yMXC8thIjeyzN65kJNdpAiYg6pYSD-J3gWQ4jXaXwbsQQkGmRCBK9--8P5bep1glXSRkXTebpjAvkOi8GbUphwfEi5NbSyYhMzTXyE03q4G4tfHlU5EqNA" class="kg-image" alt loading="lazy" width="602" height="215"></figure><p>Within each network, oracles can provide different types of data:</p><ul><li>price rates between two tokens, NFTs, etc. (data about the price relation between 2 tokens is called data feeds);</li><li>automation services;</li><li>direct requests from consumers (when somebody directly requests data from Chainlink protocol);</li><li>A verifiable source of randomness for smart contract developers (VFR).</li></ul><p>P2P currently provides more than 2000 unique data feeds on different chains. While most of these data feeds are shared across multiple chains, some of them are unique to a specific chain, for example, the METIS-USD data feed is present only in the Metis network. Here’s the distribution of data feeds per network:</p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/PoRy4aBEV2Y-nutW0NLkgLF6UdD4HxMGBCuoutrrYMIdt9D4NwKX45YCzCbcf1M7jceBnnyZOsYGDmftMiFcas8jNjbd6wJVzrXeHb33RqCKXnHbC0flxRZca43_La6oR07sUNTkfROSm0yuEFQ7GRzZnZilZQeJRtpLxBO-kmALFji7vdI2qanxcyQVjw" class="kg-image" alt loading="lazy" width="602" height="216"></figure><p>These data feeds are distributed between node operators in every blockchain. This is the first side of Chainlink’s decentralisation.</p><p>A few technical details:</p><p><em>Oracles generate reports for data feeds continuously by sending requests to data providers (APIs) and aggregating them (median). Every time consumers need data, Chainlink asks one of the oracles, that is assigned to that data feed, to write that data to the blockchain. The session data recording is called the Round and the chosen oracle is called the Leader of the Round. The Leader gets data from other oracles (who are also assigned to this data feed), calculates the median value and writes it to the blockchain. If for any reason the Leader couldn’t do it - the next oracle becomes the Leader and has to do it.</em></p><p><br>It is not enough to just attract a large number of oracles, it is also important to ensure that the oracle’s data is decentralised. This is achieved by using different data sources for different oracles.</p><p>For example, the price feed for ETH-USD in Fantom is distributed between oracles and data sources (APIs) as follows:</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/n5ZNZNryhyK1tldaIwlR_iMB7yL8nm-g7hifNVL9uHp2r1DYPanLa2RrQnP4ESaFGmoelpxr_7KAOEjq8qsh5AgpD7w5mo70xFRBEY_LYP712JBbyXetp02hrTDVzfP9gtLdCzKPL1_Y6qC8KocEspigEkxMwlZSGfGbi4oGnuwMmkSuLWKmvZClfHfZag" class="kg-image" alt loading="lazy" width="581" height="503"></figure><p><em>Note: A 1 means that an oracle gets the data from the API, 0 means that the oracle doesn’t get it from that source</em></p><p>The degree of decentralisation can vary as it depends on the number of data sources that provide the price data and the number of oracles. We only need the fact that different oracles send requests to different API services to proceed with the data when Chainlink needs it for understanding Chainlink’s decentralisation.</p><h3 id="p2p-chainlink">P2P &amp; Chainlink</h3><p>P2P joined the Chainlink oracles network in 2018. We first started as a NOP in Ethereum on several data feeds and we haven't stopped growing since that time. Today we are present in 6 networks and we provide data for more than 150 feeds.</p><p>This level of growth was a serious challenge for us as a company. Looking back it seems that it would be impossible to become a successful Node operator without a data-driven approach. Luckily, in 2020 we had already understood that we needed to collect and analyse data about NOPs’ performance in Chainlink. In this article we will walk you through our path and go through it from the beginning.</p><p>We provide 4 steps for a successful data-driven approach to node management:</p><ol><li>Define key metrics. You can’t control anything without measuring it, but first, you need to understand what you want to measure.</li><li>Extract all the necessary data. It seems obvious but we had to work hard to collect all the data from different networks, make indexers and transform it so that they are usable for analytical purposes.</li><li>Determine who is a good node operator. When you’ve collected all the metrics you should understand what you can do with them: what is under your control and what is not. You need to also keep in mind Chainlink's main mission - to provide accurate off-chain data to the blockchains.</li><li>Decision making. Develop analytic tools to transform the data into knowledge that can be used in decision-making.<br></li></ol><p>Let's start with the first step.</p><h3 id="key-metrics">Key metrics</h3><p>The main purpose of the Chainlink protocol is to provide data for users. As we have previously mentioned, “Round” is the act of writing data to the blockchain by an Oracle.</p><p>Here are the number of rounds for the Ethereum mainnet in 2022.</p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/xapxQXV-nkH28gGuqnyC0DxlXRTfWntVZM5B92D8Jm7BX24Z9Cgsb1Kfw8uSVc5I_PBZjhN2dD9TUNSOWWmhYeWFi-A2_M4n5Xb_5ienucAcJVKrtfkk_HfxnDZsMc2cvpJCNDTL-WGU05i7HB43RIA3lQRK0kP3txlaF5MqLbh4K-j2DWs9lZbqQ1PlAQ" class="kg-image" alt loading="lazy" width="602" height="193"></figure><p>This is how we compare the consumption of Chainlink’s data by different chains (for example Avalanche, Fantom, Harmony, Moonriver and Ethereum). You can notice there is a peak in the number of rounds in May (Terra collapse), June (Celsius) and November (FTT/FTX collapse). This is true for every chain:</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/b9ZreTaBRX5kUef45SkDBOFsJrgXmwmKrFcwf_5CBdvwPxtMgHP2JieX4xHVAE3tQhSidDFG_FAMFptn2bRnkYHHCOs5VCGfQ6mdy3DRoKSksgKgYtRSW1IRFkZLr-tao1SwaHza-r--sieVqQlFjWZ1LaLPahSdolAlAqulYP7Hvj6fVrGqsTCWVsod7g" class="kg-image" alt loading="lazy" width="602" height="180"></figure><p>We can track the number of rounds to measure the consumption of data supported by Chainlink for any chain/feed/oracle. For example here is the number of rounds for ETH-USD (dark blue), FTT-USD (green) and ATOM-USD (bright blue) on Ethereum’s mainnet:</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/5vGOUEiQeURrCyua2Imyq5boZ6GjD4MAVmH_4eh_dDld3pY3IZOH2Y8jDWHKbMV8RX7gNCexad_poWtHYVGGTDwCW7VO-eSPJVBI142XoaF_MNzsrcxaxVo3ZL8iG2h_jVSfpq8RAvtOcG5QUkgPoLzb1dLm5GQO3KL8C_OFXHO5UkTEPr9LGJOPyaOLFQ" class="kg-image" alt loading="lazy" width="602" height="175"></figure><ul><li>There are a lot of spikes for the ETH-USD data feed. During our monitoring of Chainlink's activity, we see that every significant crypto event increases the demand for ETH data feeds. It is probably connected with the need to swap every token to Ethereum either because it seems like one of the most securable assets or because it has the best liquidity;</li><li>Cosmos ATOM saw a growing demand for price data in the middle of May (we link this with the Terra collapse) and not a so significant peak in November;</li><li>With FTT we see the opposite. The number of rounds was lower during May ‘22 and much bigger in November ‘22 during the FTX scandal.</li></ul><p>It is not enough to just provide data, our purpose in Chainlink as a NOP is to provide accurate data. For that, we need an estimation of the quality of the data that is calculated based on the oracles’ answers every round. We call this “Deviation”. It is calculated by comparing a particular oracle’s answer for that Round to the Round’s final value (the median of each oracle's answer). This way, we can track the variance of each oracle every Round. This can also be used to calculate the average value of each oracle’s deviation. Here is how we can compare the data quality for different chains:</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/GIGrmSCocpuw1HYcBG5nb325HI2kPQO1-BkkeSN2gjrleMZckC3fBt69FhJuy6HbxZS22QVeJ9DD-laJ35WcSKhDznJJIctF4_8ndu9QIaUBvkhHpWoyWaXiSBDknbLtym6aU7Zeb2F9tCBkA8dBcCRTYmjMCN1ani9Tt1Xx9FO31mTpgzZaPyLiXXVhNw" class="kg-image" alt loading="lazy" width="602" height="172"></figure><p>It is important to mention that the most popular deviation threshold for data feed defined by Chainlink is 0.5%. There are a lot of feeds with even a 5% deviation threshold.</p><p>It is also interesting to compare the performance of different NOPs by their ability to write Chainlink data on-chain. We use the Transaction success rate (TSR) for this. This is the ratio of the number of successful transactions to the number of unsuccessful transactions.</p><p><strong>Data extraction</strong></p><p>This is not the main subject of the current article. We plan to talk about this a bit more in a future post. Today we will only mention the main architecture of the ETL (Extract, transform, load steps of data uploading pipeline) process:</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/k8IpSUldKoj2x3RDdjVRlY01TlVaKtvARTFciBmqkGLOwOMNo-CSVCyvdQimOTzaB0mhL_cFC7J_RQlpfVH-uWARBeUkrmIjg0xL9LxHj2_eHSesRQ_WnxwSgMYSBIwp_L9P6S0vL3UYZV1sYMyGHdjh0JMuwTJrnzmTMXG2jKX1ejnl8TLdegIMCMhVOw" class="kg-image" alt loading="lazy" width="602" height="189"></figure><p>The first 3 sources are:</p><ol><li>On-chain data</li><li>Chainlink <a href="https://github.com/smartcontractkit/reference-data-directory">repo</a></li><li>TheGraph: our subgraphs are available here:</li></ol><ul><li><a href="https://thegraph.com/explorer/subgraphs/53PbnKoeHChwYvh7rKJES7sdRbwtutszWyTbrrSyib7Y?view=Overview">Chainlink on Ethereum</a></li><li><a href="https://thegraph.com/hosted-service/subgraph/vkuzenkov/chainlink-fantom-mainnet">Chainlink on Fantom</a></li></ul><p>Stay tuned if you want to know more about data and indexation in the future.</p><h3 id="who-is-a-good-node-operator">Who is a good node operator?</h3><p>Every NOP is a company first. The main target of every business is to be profitable. Let’s look deeper into Node operator economics.</p><p>Oracles get rewarded in LINK for every report to the blockchain, regardless of who was the Leader of the round. The Leader gets additional rewards for writing data to the blockchain.</p><p>The main expenses of an Oracle are gas costs, infrastructure costs and human resources. Oracles should pay the gas cost to write data to the blockchain when it was chosen as Leader of the Round.</p><p>We can track rewards and gas costs to estimate the revenue of the oracle's performance. Here is Chainlink on Ethereum financial metrics:</p><figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/G-e8bKxh3uuB8r4xRLS8LBfnRh7EVqJFcSvpnsDm2nuoKSbnxBhrbhZyCZ5tvRYHQ26aoNgGkuHiNNgM-ky_mOqTIGTIiNknQfbEEbv5aOAxgw8WhRm5e3kKi2TcEBXrDm4f4jVK7MZRlhw53KwkDpMbV4rtLpahFZ-bURQ1CNs3zSKMswSftu4JBm9lig" class="kg-image" alt loading="lazy" width="602" height="265"></figure><p>So the total net revenue for all of the oracles in Ethereum is 37.3 mil $ during this year.</p><p>Now we know the Chainlink mechanics. We also know that a Bear market in Crypto leads to smaller amounts of revenue for every project. But 2022 has also brought us a lot of activity from scandals involving multiple projects: Terra, Celsius, FTT and so on. What if we want to understand how stable an oracle’s revenue can be during an unusual event ? We will definitely want to know what the gas spending value was and how many rewards the oracles got. It will also be great to see deviations to understand the consensus about price data between oracles.</p><p>Let’s see what was happening with an oracle's net revenue during 2022 across 6 networks: Ethereum, Solana, Fantom, Moonriver, Harmony and Avalanche:</p><figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/lDoax59JiicEyvaBGsGERT7XT_v8qT8u1R5K7uHgIdIc7hdd6Y6ijI0j0Efe1om5UTsPyy0qYtVuO021MNS5OVtcjbUl7f4hl96QJcVTMaFnx7u05U2fORFe02Ds3H3PX8iXQ0fRHEm_LmGW0dCDf8Df8lAhIF2icWaQ-khXzAVGWc-7nxqK55XzgCUIgQ" class="kg-image" alt loading="lazy" width="602" height="176"></figure><p>Here's what was happening with revenue during April-may ‘22 to understand how the Terra event influenced Chainlink NOPs:</p><figure class="kg-card kg-gallery-card kg-width-wide"><div class="kg-gallery-container"><div class="kg-gallery-row"><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/1.png" width="516" height="518" loading="lazy" alt></div><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/2.png" width="686" height="598" loading="lazy" alt srcset="https://p2p.org/economy/content/images/size/w600/2022/12/2.png 600w, https://p2p.org/economy/content/images/2022/12/2.png 686w"></div></div></div></figure><p><br>We can see that everything went up: Costs, Rewards and Net Revenue. So during this commotion around Terra, we see a peak in the number of rounds as we mentioned earlier. It led to an increase in network utilisation and higher gas costs. But it also brought more rewards to node operators and higher Net Revenue as a result.</p><p>A slightly different situation was the FTT/FTX collapse. We’ve already seen that there were way more rounds for FTT data feeds. If we dig deeper we can also see that it happened to every asset associated with FTX such as Solana. But what about net revenue?</p><figure class="kg-card kg-gallery-card kg-width-wide"><div class="kg-gallery-container"><div class="kg-gallery-row"><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/3.png" width="694" height="654" loading="lazy" alt srcset="https://p2p.org/economy/content/images/size/w600/2022/12/3.png 600w, https://p2p.org/economy/content/images/2022/12/3.png 694w"></div><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/4.png" width="864" height="640" loading="lazy" alt srcset="https://p2p.org/economy/content/images/size/w600/2022/12/4.png 600w, https://p2p.org/economy/content/images/2022/12/4.png 864w" sizes="(min-width: 720px) 720px"></div><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/5.png" width="684" height="650" loading="lazy" alt srcset="https://p2p.org/economy/content/images/size/w600/2022/12/5.png 600w, https://p2p.org/economy/content/images/2022/12/5.png 684w"></div></div></div></figure><p><br>It was the same during September and October, with no significant differences. But what about P2P:</p><figure class="kg-card kg-gallery-card kg-width-wide"><div class="kg-gallery-container"><div class="kg-gallery-row"><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/6.png" width="584" height="612" loading="lazy" alt></div><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/7.png" width="614" height="626" loading="lazy" alt srcset="https://p2p.org/economy/content/images/size/w600/2022/12/7.png 600w, https://p2p.org/economy/content/images/2022/12/7.png 614w"></div><div class="kg-gallery-image"><img src="https://p2p.org/economy/content/images/2022/12/8.png" width="612" height="628" loading="lazy" alt srcset="https://p2p.org/economy/content/images/size/w600/2022/12/8.png 600w, https://p2p.org/economy/content/images/2022/12/8.png 612w"></div></div></div></figure><p>Our revenue hasn't changed much during the last 3 months.</p><p>Besides revenue, every NOP should care about its reputation in the Chainlink network. As we previously mentioned, we track reputation by 2 key metrics:</p><ol><li>Deviation</li><li>TSR</li></ol><p>Here’s the Deviation stat for 5 networks:</p><figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/MFvB1wIPX31q-SczY1-ZRDov9wNrfniYHIBiSpqWMnJvsQJ8F5Hb4YMSHFxdNj9NmC4AAx1d4nR1UCfsvkewZYKSGSE6ICtKeCZZ4Jmms2D6mOvuL9JlZi1vqkA6qH7NqG-113OrPYXxoFiItbyeKfMAlGuoWWZMJ8ydT0AJF6pOK7xiBXI2-QvCaCVvXw" class="kg-image" alt loading="lazy" width="602" height="173"></figure><p>The two red vertical lines mark the Terra and FTT/FTX events.</p><p>It is expected that during a big market event, the consistency of oracles decreases. We can see the huge deviation in Avalanche and Moonriver during the Terra collapse.</p><p>During the FTX event we can observe a deviation, although much smaller when compared to the earlier one:</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/PF1e9w5FoYu1eUCBICXhEepDSJd01b9q-v_V9O7RGT51L1yI5yOCFe3awTjaBpiztMrBZFbLQMT7tyuVbq2lMbH-YClh4fVu42oYM_j_dgPuhYIbcSNM10EwYdPDhVs9FwMliPoEQE9XF4Zmc7IO-XJim4rfQKTkz2ThbBA30IcRAFM_m3PTeMdBTleMlQ" class="kg-image" alt loading="lazy" width="203" height="276"></figure><p>We can also compare oracles based on TSR to estimate how successful oracles are in writing data to the blockchain. For example, here is the TSR for Ethereum’s mainnet:</p><figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/0AwgVfBVVPTzGOmoXWFbqxTtTYMHRlbKgvz_JkoJ83drgBcsidggKMCu6M2F9aJOZol0k7wBM-F_31iPjnRmHVQn1tip5a_Zu8l1652XFfwoAqhV8PvvF1UvcZACIU0OkxaKRkPoI-RHPRtBaarQEa3ruE_ODKGnz3kOpU3ODRIbmsX7nQq8muTMxBczcA" class="kg-image" alt loading="lazy" width="602" height="175"></figure><p>We can observe that during November and for most of 2022, P2P had a TSR ranging between 90-100% in every network except Fantom and Solana (and Moonriver in April). This is because those chains use a different transaction execution mechanism compared to most EVM chains. You can make sure that this is quite a good metric value by comparing us to others.</p><p>Here is the distribution of different NOPs TSR for the Fantom network:</p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/6nvlDCRGlu0CQezWXbVY_Hz9RSnlkKGTHUUVCDiIckYpfRtxrmr0Y0Rz7WoD5EyHXnHUTAVxctbssydK82O-htUsQ980nGcglNVN2Fu93nEDdrv8ZZbIKMkvExrlfLyd5QnfWK0OsimT9zAiBd_McY2VH7fY0GoQ2BhRyWy67_eCmjsnVQDT43ylX9S6Wg" class="kg-image" alt loading="lazy" width="602" height="329"></figure><p><br>We can observe that even at its lowest point P2P was among the top NOPs.</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/rq8zjGR9Gg1DnY7SI840HpM4Nl03jg54-7tr3z6YhJOOh2xXUl1A-qKX7l59hco13rNG8hE4jtCg1BA5-FBQIJC0L6JPbQaS26b5cwQy-55b-UdaOJFufVOkiBP8mNp0qC576tZW2vCPee7ShXW9yeK01QIL-R5qcGcDqFq4k6G6WUH55OLa952T3m4gTA" class="kg-image" alt loading="lazy" width="602" height="333"></figure><p>The median TSR or all Nops on Solana was 6.07% and the median TSR for P2P was 6% for the same period.</p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/2T9H6f4Ovl5_QpOcvm1G7wVaFomZuLOKC3NdWW6T6sUMW0nn8Rz0db0Y7NmXBvsjj-Ouuf3bLyYESj-JGhy8IeZ3U4418pX_CQHUWbm03_qDMnJGVPYcqD7TvRtDzjs0ZOT6vfj0dhh-J2Uej-nqhJpKtaA0TSfIV9wFdlCmxVegFjHz23as4BzCW36FDw" class="kg-image" alt loading="lazy" width="602" height="332"></figure><h3 id="decision-making">Decision making</h3><p>In this section, we will discuss how we solve business problems by using a data-driven approach.</p><p>On August 2021 Ethereum released EIP-1559. A significant aspect of this proposal was how it overhauled the transaction fee system. For P2P it meant that we could now use EIP-1559 to prioritize transactions. We weren’t sure how this would affect the transaction success rate, in other words, did miners have a preference for one type of transaction?</p><p>We’ve decided to run an A/B test. The design was to switch the priority fee algorithm from Standard to 1559 every 15 minutes and set the configuration of both algorithms. As a result, we’ve got the same transaction success rate and significantly different cap fees as can be seen in the picture below:<br></p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/cZyvehzptSVbQyPoD8YDWRJWCzQIE5XZ8cN-X6Sm2vBhqtmTKO9AQg5vyqkRp_MYm1e5Ldop_oqZRRdjRED7zeWDU-WrzBAJIR3kLAy6Ueo64cnnN6hYlS8nX7vnal2Yj0GG8DjXgzJoHTCSp5uftQWhy1tZsHOaZ_krVTE54Fqt2uluZzOXDU9Q0lW3GA" class="kg-image" alt loading="lazy" width="602" height="371"></figure><p><br>This is how data analysis and data-driven approaches are applied in decision-making.</p><h3 id="staking">Staking</h3><p>Chainlink Staking v.0.1 launched on December 6, 2022. During this first version there are two ways to stake Chainlink:</p><ol><li>Community staking: you need to satisfy three <a href="https://blog.chain.link/chainlink-staking-early-access-eligibility-app/">criteria</a> and the APR is around <a href="https://blog.chain.link/chainlink-staking-launch-details/">4.75%</a><br></li><li>Staking through a NOP: when a NOP stakes from 1000 to 50k LINKs as a self-stake. APR is 7%.</li></ol><p>If you want to see the details you can read <a href="https://p2p.org/economy/chainlink-staking">this post</a> in our blog or on Chainlink's official <a href="https://blog.chain.link/how-to-stake-chainlink-link/">website</a>. But as you may see the community staking pool is already full and won’t be expended till v.1.0 (9-12 months):</p><figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/EhIZFEBJ2vh9a7_V1SzfCJZF2-cWSKe12djGu_6WTb1vlaSwJ9Fi5GezBhCJnqoDf_TdoIPi1HVv5CzdIfuLmcg2a0qbI4Qv6tyuaWgdFZe2c_pYU1hyKUfK2X-bS1hnDsMjZPvbWQdpXaY3TO2vQMPNMfoDG9DBj3bo59575bJQvY9DaRUdeLDfLJDKwg" class="kg-image" alt loading="lazy" width="386" height="373"></figure><p><br>That is why we are glad to provide our clients with a custodial solution to get a higher APR through P2P with a 10% fee. Through P2P you need a minimum of 10k LINK and can stake up to 50k LINK.</p><hr><h3 id="about-p2p">About P2P</h3><p>P2P Validator is a world-leading staking provider with the best industry security practices and proven expertise. We provide comprehensive due diligence on digital assets and offer only top-notch staking opportunities. At the time of the latest update, more than 1,5 billion USD is staked with P2P Validator by over 25,000 delegators across 25+ networks.</p><p><br></p><p><br></p><p><br></p><p><br></p><p><br></p><p><br></p><p><br></p>

P2P Validator

from p2p validator

Chainlink Chainlink staking overview

<p>Staking will be a major breakthrough for Chainlink and the community from a number of different perspectives. Let us uncover how you put your LINK tokens to use and get rewards for helping Chainlink secure DeFi and the larger Web3 ecosystem.</p><h2 id="chainlink-recap"><strong>Chainlink recap</strong></h2><p>As you know, Chainlink is the industry standard oracle network that has enabled over $6.4 trillion in transaction value across Ethereum, Polygon, Solana, and 12 other blockchain networks, at the time of writing. They do so by providing highly available and accurate on-chain market data, for hundreds of data feeds. When you use a DeFi application on Ethereum, it is highly likely that it leverages Chainlink Data Feeds to get the latest token prices in order to execute a lending, swap, or any other smart contract.</p><p>The Chainlink Network achieves decentralization and security in two ways:</p><ul><li>A node operator uses multiple data APIs to get price updates, so that if one of them fails, the others still can provide accurate information;</li><li>Multiple node operators handle the same price feed, so that if a few of them fail to provide an accurate data update, the reported price can still be relied upon.</li></ul><p>The value in this approach to decentralization has been shown time and again during periods of extreme market volatility, when Chainlink’s multiple layers of decentralization and defence-in-depth design help mitigate the risk of market manipulation, oracle attacks, and other exploits.</p><p>P2P has been operating on Chainlink for the last two years and <strong>supports </strong>price feeds and <strong>automation </strong>for Ethereum, Solana, Moonriver, Fantom, Harmony, and Avalanche.</p><h2 id="why-implement-staking-now"><strong>Why implement staking now?</strong></h2><p>As the total value secured by Chainlink oracle networks grows, the reward for a hypothetical attack increases, hence a need for increased cryptoeconomic security that maximizes the cost of attack for malicious actors. As of now, the node operators are sufficiently decentralized and perform well enough so that further improvements in this area only provide marginal gains. Staking however, can drive way more significant security improvements via new incentives for the node operators and token holders.</p><h3 id="how-staking-is-going-to-work">How staking is going to work</h3><p>Node operators and the broader Chainlink community will be able to stake their LINK via node operators and get rewards for helping enhance the cryptoeconomic security of the network. ‌‌‌‌Providing accurate and timely feed updates is necessary for the node operators to actually receive those rewards and in order to enforce the best data quality.</p><p>In the early-stage beta implementation of Chainlink Staking, v0.1, stakers will have the opportunity to monitor the feed, raise an alert, and get rewarded if they successfully detect in a timely manner that the ETH/USD feed has not met certain performance requirements. In v0.1, alerting conditions will be focused on feed uptime but will expand in scope in later versions.</p><p>The Chainlink Staking design is quite complex, so its elements are going to be brought forward step by step.</p><h2 id="who-can-stake-during-early-access"><strong>Who can stake during Early Access</strong></h2><p>According to a Chainlink <a href="https://blog.chain.link/chainlink-staking-early-access-eligibility-app/">blog</a> post, there are 3 criteria for participating in the Chainlink Staking v0.1 Early Access which will launch on mainnet in December 2022:</p><!--kg-card-begin: html--><table style="border:none;border-collapse:collapse;"><colgroup><col width="132"><col width="700"></colgroup><tbody><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Criteria</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Details</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Hodler</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Token holders who fall into either category:</span></p><ol style="margin-top:0;margin-bottom:0;padding-inline-start:48px;"><li dir="ltr" style="list-style-type:decimal;font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;" aria-level="1"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;" role="presentation"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Held more than 7 LINK on the Ethereum Mainnet for at least 50% of the time between May 30, 2019 and June 7, 2022.</span></p></li><li dir="ltr" style="list-style-type:decimal;font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;" aria-level="1"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;" role="presentation"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Held more than 7 LINK on the Ethereum Mainnet for at least 90% of the time between August 5, 2021 and June 7, 2022.</span></p></li></ol></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Builder</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Participating teams in any Chainlink-hosted hackathon from Fall 2020 to Spring 2022.&nbsp;</span></p></td></tr><tr style="height:0pt"><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Educator</span></p></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"><p dir="ltr" style="line-height:1.2;margin-top:0pt;margin-bottom:0pt;"><span style="font-size:11pt;font-family:Arial;color:#000000;background-color:transparent;font-weight:400;font-style:normal;font-variant:normal;text-decoration:none;vertical-align:baseline;white-space:pre;white-space:pre-wrap;">Chainlink Advocates, Developer Experts, and others who have demonstrably hosted or spoken at Chainlink meetups about the Chainlink Network or Chainlink Ecosystem.</span></p></td></tr></tbody></table><!--kg-card-end: html--><p></p><p>You can use the <a href="https://staking.chain.link/">Early Access Eligibility App</a> to check their eligibility for potential priority access staking in Staking v0.1.</p><h2 id="roadmap"><strong>Roadmap</strong></h2><p>As we discussed previously. The primary goal of Chainlink is to increase the security behind the infrastructure that supports DeFi. As outlined in a<a href="https://blog.chain.link/chainlink-staking-roadmap/"> blog</a> post, Chainlink Staking is being designed with four long-term goals in mind:</p><ol><li>Increase the security and user assurances of Chainlink oracle services;</li><li>Enable a more direct community participation in the Chainlink Network and its security;</li><li>Generate sustainable rewards from real use cases;</li><li>Empower node operators to access higher-value jobs by staking.</li></ol><p>Like previous Chainlink updates the implementation of LINK staking is being done gradually. While the initial focus will be on building a reputation framework and staker alerting system, the second stage will look to implement slashing to further boost security and user fees as rewards. Last but not least, loss protection is being studied to help protect participants when an oracle network deviates from its service-level agreement.</p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/9L51EIVEys0m61Qv2piTcYCpMmVA4bhUvVnQYbSzw7TyHNLGn_vZ7qP4vJQ4IzBFnRTR0R-3peKdmNwAfYhNsvSzaaxl1xZOPK9g40jOjIbBK6qW6-LMXJh_E0y9-FqnDr2bGZkeV0Kph_4cwpeYXXVVvH36thLJJ5cDdHadX0sSvhaZjMh8Miecxw" class="kg-image" alt loading="lazy"></figure><p>The first version of staking is expected to go live by the end of 2022. Stay tuned!</p><h2 id="whats-next"><strong>What's next</strong></h2><p>At P2P, we are watching closely as LINK staking gets close to launch, and will post updates on this topic here in the blog as soon as more details are found. We are also exploring what kind of tools we can bring forward to help the community. So watch this space, much more to come in the near future!</p><p><a href="https://staking.chain.link/">Check your eligibility for Early Access to Chainlink Staking v0.1</a>. </p><p>Contacts us if you are interested in staking LINK:</p><p>Email : <a href="mailto:[email protected]" rel="noopener noreferrer">[email protected]</a></p><p>Telegram: <a href="https://t.me/P2Pstaking">P2Pstaking</a></p><p>Twitter: <a href="https://twitter.com/P2Pvalidator">@P2Pvalidator</a></p><hr><h3 id="about-p2p"><strong><strong><strong>About P2P</strong></strong></strong></h3><p><a href="https://p2p.org/">P2P Validator</a> is a world-leading staking provider with the best industry security practices and proven expertise. We provide comprehensive due diligence on digital assets and offer only top-notch staking opportunities. At the time of the latest update, <strong><strong>more than 1,5 billion USD is staked with P2P Validator by over 25,000 delegators across 25+ networks.</strong></strong> </p>

P2P Validator

from p2p validator

Chainlink P2P Validator joins Chainlink network as a node operator

<p>The question of blockchains having trustless connection with external data is significant for the real-world implementation of highly functional smart-contracts in both new and traditional industries. Not only do they require connection to external resources, but the off-chain connection must maintain the same properties of decentralized security currently available on the underlying blockchain. With that in mind, P2P Validator is thrilled to announce the launch of our Chainlink node with the mission of providing smart-contracts with the required data feeds in an increasingly decentralized manner.</p><p>Decentralized oracles solve smart contract’s lack of connection with external resources without sacrificing trustworthiness. This keeps digital agreements reliable and tamper-proof end-to-end, which is crucial for real-world usage. This vision is in line with our mission to promote the value of blockchain assets and give people access to the emerging data-driven economy.</p><p>Our developer team has extensive experience in setting up secure infrastructure. P2P Validator maintains high-availability nodes and provides secure staking services for the most groundbreaking projects in the blockchain space. The node infrastructure is under advanced monitoring with 24/7 technical support, backups and alerts.</p><h3 id="about-chainlink"><strong>About Chainlink</strong></h3><p><a href="https://chain.link/">Chainlink</a> is a decentralized oracle network that enables smart contracts to securely access off-chain data feeds, web APIs, and traditional bank payments. Chainlink is consistently selected as one of the top blockchain technologies by leading independent research firms such as Gartner. It is well known for providing highly secure and reliable oracles to great companies like <a href="https://cloud.google.com/blog/products/data-analytics/building-hybrid-blockchain-cloud-applications-with-ethereum-and-google-cloud">Google</a>, <a href="https://www.forbes.com/sites/darrynpollock/2019/07/30/oracle-building-a-virtuous-cycle-of-innovation-with-start-ups-through-chainlink-and-blockchain/#30d94a3c4ffc">Oracle</a>, <a href="https://www.coindesk.com/swift-startup-winner-demos-smart-contract-trade-5-financial-firms">SWIFT</a>, and many other large enterprises, as well as many of the world's best smart contract projects/teams such as <a href="https://medium.com/web3foundation/web3-foundation-and-chainlink-announce-collaboration-df55ed462a3a">Web3</a>, <a href="https://medium.com/hashgraph/hedera-hashgraph-and-chainlink-collaborate-to-provide-a-decentralized-oracle-network-for-hederas-3d1c77a6bcb9">Hedera</a>, <a href="https://medium.com/reserve-currency/reserve-partners-with-chainlink-to-bolster-the-future-of-decentralized-stablecoins-5d486f37e92b">Reserve</a>, <a href="https://blog.openzeppelin.com/chainlink-partnership/">OpenZeppelin,</a> <a href="https://medium.com/@OpenLawOfficial/openlaw-teams-with-chainlink-to-bring-real-world-info-to-smart-contracts-4e7a3dac80a8">OpenLaw</a>, <a href="https://medium.com/celer-network/celer-chainlink-combining-real-world-information-and-layer-2-scalability-24e5d478a4aa">Celer</a>, <a href="https://blog.synthetix.io/synthetix-and-chainlink/">Synthetix</a>, <a href="https://www.cryptoninjas.net/2019/07/30/zilliqa-smart-contracts-will-utilize-chainlink-decentralized-oracle-network/">Zilliqa</a>, <a href="https://blog.oceanprotocol.com/ocean-protocol-chainlink-integration-e7335f880ea3">OceanProtocol</a>, <a href="https://medium.com/amberdata/smart-contract-oracles-with-amberdata-io-358c2c422d8a">Amberdata</a>, <a href="https://www.forbes.com/sites/sarahhansen/2018/11/08/consensys-kaleido-launches-full-stack-marketplace-platform-for-enterprise-blockchains/#6d849d2ad8ca">Kaleido</a>, <a href="https://medium.com/harmony-one/harmony-to-partner-with-chainlink-for-off-chain-connectivity-fc0372819aca">Harmony</a>, and many more.</p><p>Learn more by visiting the <a href="https://chain.link/">Chainlink website</a>, <a href="https://twitter.com/chainlink">Twitter</a> or <a href="https://t.me/chainlinkofficial">Telegram</a>. To discover Chainlink use cases read the <a href="https://blog.chain.link/44-ways-to-enhance-your-smart-contract-with-chainlink/">blog post</a>. If you’re a developer, visit the <a href="https://docs.chain.link/">developer documentation</a> or join the technical discussion on <a href="https://discord.gg/FGNyjhF">Discord</a>.</p><h3 id="about-p2p-validator"><strong>About P2P Validator</strong></h3><p><a href="https://p2p.org/">P2P Validator</a> is a world-leading staking provider with the best industry security practices and proven expertise. We provide comprehensive due-diligence of digital assets and offer only top-notch staking opportunities. At the time of the latest update, more than 3 billion of USD value is staked with P2P Validator by over 10,000 delegators across 25+ networks.</p><hr><p><strong><strong>P2P Validator</strong></strong> offers high-quality staking facilities and provides up to date information for educational purposes. Stay tuned for updates and new blog posts.</p><p><strong><strong>Web:</strong></strong><a href="https://p2p.org/"> https://p2p.org</a></p><p><strong><strong>Twitter:</strong></strong><a href="https://twitter.com/p2pvalidator"> @p2pvalidator</a></p><p><strong><strong>Telegram:</strong></strong><a href="https://t.me/p2pvalidator"> https://t.me/p2pvalidator</a></p>

Alex Bond

from p2p validator