Effortless ETH Staking with P2P.org and SSV

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.