05 September 2023

Effortless ETH Staking: P2P.org and SSV Team Up to Simplify Institutional Participation

Introduction

Since 2018, we have dedicated ourselves to creating the pinnacle of secure staking solutions, especially within the Ethereum ecosystem. As of June 2023, our operations span over 50 networks, managing staked assets exceeding $1.6B. Recent enhancements to our Platform bolster our enterprise-level staking service, enabling easy integration for custodians, wallets, and neo-banks through a streamlined API. P2P.org stands as a vanguard in the drive for non-custodial staking at the institutional level, consistently pioneering methods to boost its widespread acceptance.

We're now pleased to announce further enhancements as P2P.org and SSV Network are collaborating to bring an upcoming integration of SSV distributed validators staking within the P2P.org staking platform. This enhancement will become a significant milestone for us, making it easier for institutions to manage their portfolio of digital assets and staking strategies utilizing DVT technologies.

DVT, the institutional bridge

Our vision is to provide institutional investors, their preferred custodians, and B2B wallets with a single integration point to the staking-related services.

We've been working closely with custodians, self-custody services, and wallets and collected the following understanding of their key concerns:

Being risk-averse, a need for comprehensive controls for all the risks associated with staking, including counterparty and slashing risks, is needed.
They need the ability to use multiple staking providers based on the staker's preference and decentralization considerations.
They have little appetite for maintaining multiple integrations with these providers, so ease of use and integration are critical.

DVT technology represents an excellent opportunity to create a compelling offer for institutional investors that would address these needs. Once integrated with SSV, the P2P.org staking platform will also receive an additional differentiation that will help its positioning as a single integration point across various staking services, including direct and liquid staking across multiple networks and DVT-based staking.

While many can only offer staking across various providers as a part of a liquid staking option, P2P.org will provide a unique opportunity to stake directly to multiple institutional node operators.

Considering institution requirements

Institutional staking solutions need to reflect important aspects of how hedge funds, VCs, Family Funds, and other similar entities operate in various technical and legal environments:

Funds are typically managed via custody, a B2B wallet, or a crypto-friendly bank.
These intermediaries would typically be very risk averse and require explicit controls for counterparty risk, slashing risk (e.g., insurance), and legal risk, including OFAC compliance with the MEV relays.
They would often employ highly skilled professionals requiring control of the specific MEV relays in use and access to quasi-real-time monitoring.

With these points in mind, we envision the Platform built with the following approach:

API first: building for easy integration with the custodians and wallets
Whitelisted node operator set: Pick the locations and partners that would be capable of supporting each specific institutional requirements
Built-in reporting capabilities for better tax reporting and rewards management for their specific jurisdictions

Payment simplification

SSV Network operates on a tokenomics model where SSV tokens are essential for availing the validator services. On the other hand, institutional stakers are familiar with two prevalent fee structures: monthly billing and an automatic deduction of validator fees from their cumulative staking rewards. In the latter case, stakers receive slightly diminished rewards, for instance, 95% of the total if there's a 5% validator commission, ensuring a hassle-free payment process for the validator.

P2P.org will keep this arrangement as much as possible within the SSV integration, so we must navigate the discrepancy between the clients' preferred pay method and the SSV tokenomics model.

Only trusted operators need to apply

Due to the Platform's emphasis on institutional needs and the additional demands this places on node operators, we anticipate that the Platform will function with a pre-approved list of node operators, at least in the immediate to medium future. The P2P.org team will oversee the management and integration of node operators, drawing from the expertise we've gained through various partnerships with similar technical requirements.

Essential criteria for node operators will encompass the following:

Reputable providers with proven track records for managing large amounts of stake and working with institutions
High-performance track record, as measured by rated network or similar tools
Consent to operate with the standard SSV fees assigned by the Platform
Commitment to providing the infrastructure that would be diversified geographically, as well as client software-wise, and MEV relay-wise
Potentially, commitment to providing slashing insurance

In the future, node operator participation can be opened to a broader group of node operators.

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Kamil Jakub Natil

P2P.org to Support Vara Network as Core Validator

P2P.org is thrilled to extend our support for Vara Network, a L1-network built on the top of Gear Protocol. This step reflects our unwavering commitment to nurturing innovation within developer communities and facilitating easy and efficient access to decentralized technologies.Vara Network: Transforming Blockchain DevelopmentVara Network is built on the top of Gear Protocol technology, a Substrate based smart contract platform which presents a familiar environment for developers, allowing them to create innovative dApps for all industriesHere are the key highlights of Vara Network:<ol><li>Robust Operation and Scalability: Vara leverages Gear Protocol's technology stack and implements sharding to divide its network into smaller "shards." This approach significantly enhances network scalability as Vara continues to expand.</li><li>Message Delay Functionality: Vara Network allows users to schedule and execute actions at specific times in the future. This capability proves invaluable for various applications, including decentralized finance (DeFi) and time-sensitive operations.</li><li>Smart Contracts Powered by Substrate: Vara Network relies on Substrate's framework for its smart contracts, ensuring a solid foundation for decentralized applications.</li><li>Gas Reservation Mechanism: Vara introduces a gas reservation mechanism, allowing users to allocate computational gas for their transactions in advance. This ensures the prioritized execution of critical transactions, promoting efficiency and timely processing.</li></ol>Gear Protocol: Streamlining Smart Contracts with WebAssemblyGear Protocol represents a pivotal moment in smart contract development. It provides developers with a Substrate-based platform that streamlines the creation and deployment of decentralized applications (dApps).Let's explore the features of Gear Protocol:<ul><li>The Actor Model: Gear Protocol adopts the Actor Model, where each program functions as an independent "actor." These actors process and transmit messages asynchronously, guided by their unique logic. This architecture enables parallel processing, allowing multiple tasks to run concurrently, thereby enhancing scalability and efficiency.</li><li>Persistent Memory: This feature ensures data accessibility. Persistent memory guarantees the secure preservation of critical data, enhancing network reliability and resilience.</li></ul>"Gear Protocol and Vara's groundbreaking approach bridges Web2 and Web3 seamlessly. By simplifying development and enabling focus on messaging, it accelerates blockchain adoption. Vara simplifies the transition from Web2 and Web3 with its features, eliminating complexities and propelling blockchain into the mainstream." - Aleksandr Tishin, Data Analyst at P2P.orgAs one of the first validators and one of the largest non-custodial staking providers, P2P.org plays a pivotal role in securing and advancing the blockchain industry. With a track record of safeguarding over $1.5 billion in assets, our commitment to the blockchain ecosystem is unwavering. We excel in conducting comprehensive due diligence on digital assets, providing top-tier staking opportunities, and establishing valuable partnerships across the DeFi landscape.At the core of our mission is the shared vision of an open and decentralized future for all. We firmly believe in the power of decentralized technologies to drive positive change and innovation. Our support for projects like Gear Protocol and Vara Network underscores our dedication to developer communities, simplifying development processes, and fostering easy access to decentralized solutions. As we continue to forge ahead, our strengths as a company lie in our unwavering commitment to the blockchain industry's growth, security, and accessibility, aligning with a world where blockchain technology transforms industries and empowers individuals worldwide. Together with others in the ecosystem, we strive to build a more inclusive and decentralized future that benefits everyone.

Kamil Jakub Natil

from p2p validator

TheGraph The Graph: How can you migrate your delegation from Ethereum to Arbitrum

<h3 id="why-should-you-migrate">Why should you migrate?</h3>The Graph has decided to move the protocol to Arbitrum since gas fees are smaller for all operations there, including delegating & claiming query fees.Many query fees on Ethereum remained unclaimed as it was more expensive to claim than their value. As it is cheaper to claim them, delegators will finally have additional revenue to their stake with indexers.<h3 id="what-is-the-migration-schedule">What is the migration schedule?</h3>At the moment of writing, 5% of the total rewards of the protocol issuance happens on Arbitrum, while 95% of the rewards are still being distributed on Ethereum.Sometime around September 10th, a shift to 25% / 75% distribution is expected.If everything goes well, 2-4 weeks after that, the distribution will be changed to 50%/50%.As soon as enough stake will migrate to Arbitrum, the distribution will change to 95% Arbitrum / 5% Ethereum.<h3 id="when-is-it-better-to-move-your-delegation">When is it better to move your delegation?</h3>We have prepared a dashboard to help you make data-driven decisions and maximize your revenue during migration. <a href="https://reports.p2p.org/superset/dashboard/153?ref=p2p.org">https://reports.p2p.org/superset/dashboard/153</a>We have prepared the best date for you to start the process on this dashboard. <figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/qUGx-xI_6MnHMqd4G5ckGvDX6uARjJQtN-YD_QivM-Cb-KteAGwpx6n-RPXY_PE_nJLddxTQbX4bduqsUP8qE9n4OT2BLarTN4LtblrZFiKWb9Gkj6eWdWMy-NaLXLEbnPAKtrjSUYKmovoXwPz3FLA" class="kg-image" alt loading="lazy" width="602" height="104"></figure><h3 id="how-was-this-date-picked">How was this date picked?</h3>Below the dates, you can see our currently opened allocations on both indexers. You get your rewards when we close those allocations. So, if the allocation is open for 20 days, those rewards are stored on the smart contract, and when we close the allocations, the rewards for these 20 days are assigned to your address. The recommended days are when you get most of the rewards from L1, thus making you ready to move to L2.<h3 id="will-my-unclaimed-rewards-be-transferred-as-well">Will my unclaimed rewards be transferred as well?</h3>Yes.<h3 id="how-can-you-start-the-migration-process">How can you start the migration process?</h3><ol><li>Go to <a href="https://thegraph.com/explorer?ref=p2p.org">https://thegraph.com/explorer</a> and connect the wallet with your current delegation in the top right corner.</li><li>Expand the menu in the top right corner and click on the overview button to look at the general stats of your activity within The Graph.</li><li>There, you will see a notification that gives you an option to start the migration process</li></ol><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/14C-CDwh80UFsHSiO3MOV9lrdpjuPSOhdUmY7pFe7pQwDKjMoerTcWP-szx0KdIazxtgGnVkRoqZhM5aTs7U7QzoDO-MhNMTT0kVtYMbgQrHVZcAA8ur09tsfRunqGeJNj57axOBLbmoeMAgV0Yf-Fw" class="kg-image" alt loading="lazy" width="602" height="220"></figure>4. Click on the Transfer Delegation button. You will end up on this page:<figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/QAx84LQZXVPlUVw9-j1a6q_xVv57os8qvZg8NrrzXnybM4PBbWeTPZC80xb3KtVdPEy-W3X5tnFzpHBiw2Vwlv0FypEXFkYUgM6w9mOPWuiwYxUxShMfy0ca4QoATOVJVu1ATS_hsKGnxBfbJ4O7Qk4" class="kg-image" alt loading="lazy" width="602" height="383"></figure>5. The Receiving Arbitrum One Wallet Address will be pre-filled with the same address as your current Ethereum wallet.a) Make sure that you control that Arbitrum address! If that is an EOA (a common wallet labeled as “Address” in etherscan), you are good to go unless you want to specify another wallet address.b) IF YOU ARE USING SAFE OR OTHER SMART CONTRACT WALLET, THEN YOU PROBABLY NEED TO CHANGE THE ADDRESS IN THE RECEIVING ARBITRUM ONE WALLET ADDRESS ! Your Safe Wallet is a SMART CONTRACT! Thus, you most likely don’t control this contract address on Arbitrum. So, change this field to the address you control! It can be another Safe or smart contract wallet on Arbitrum and a regular EOA address, but make sure you own it!6. It is better to send some ETH to this wallet address via the official Arbitrum bridge <a href="https://bridge.arbitrum.io/?ref=p2p.org">https://bridge.arbitrum.io</a> if you don’t have ETH there to pay for gas. Optional: To ensure you control this wallet, you can make some transactions there, no matter which. Remember that the migration process can not be reverted, so sending the tokens to an address you do not control will lose them!7. Push the transfer delegation button. Your transfer will be initiated.<figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/MU3ceFGFV9DI_MDMwdSgBjzAQmSRux49rLytrVZwkvHopczlkRYwaKXAt6VES9v_x7kDP9kV3PaymD5XXtDkCD6Bn37D5WtLqRSJOi9t8CrKXDVFGGeIYAm7OeHfRbtM2wkJYzMJXHDFjDgtFD3VhhA" class="kg-image" alt loading="lazy" width="602" height="408"></figure> 8. You will see the countdown appear. It is better to stay nearby as the network can have gas spikes, and some additional actions might appear on the left part of the screen. After the countdown reaches 0, the migration will be completed.<figure class="kg-card kg-image-card"><img src="https://lh4.googleusercontent.com/HRE4texsUIJnS0Km0gVESmzpW2BsGn2PFq9RYSuupufPXwCnD4eknyVLY6XmXievJElDvHwWrXI77_1N7PM16dfU6DpWy9fFActnfu_Dbv0qai7lc7A-vFUa_kLNMECbhU0HtHoJk4rnnhfwQLCfzVw" class="kg-image" alt loading="lazy" width="602" height="332"></figure>There is also an official guide by The Graph Foundation with videos so that they might be helpful. In any case, if you have any questions, feel free to ask them on our P2P telegram chat: <a href="https://t.me/P2Pstaking?ref=p2p.org">https://t.me/P2Pstaking</a>And remember, no one from P2P.org or The Graph Foundation will DM you first! It is better to verify the identity of any person talking to you in the official telegram chat.

Kamil Jakub Natil

from p2p validator