We are thrilled to announce the launch of our Ethereum Staking dApp, which is designed to give you the ultimate control over your crypto assets while ensuring complete privacy, autonomy, and security. We have been working diligently behind the scenes to bring you a solution that simplifies the staking process without compromising your privacy.
By automating the staking process, we have created a permissionless dApp that is both user-friendly and highly secure.
If you have ever tried to delegate your stake to a staking provider, you are already familiar with the multi-step flow of selecting the amount to stake, setting your withdrawal address, entering an email address, and then… receiving an email from a sales representative for an intro call.
That’s why, when you stake with our staking dashboard, you can expect to complete the request in just a few clicks:
After receiving the request, your validators will be added to the Ethereum entry queue before becoming active (the amount of time depends on the network congestion).
For those of you that have a Safe wallet, we prepared a guide on how to use it with the dApp.
To celebrate the launch of our Staking dApp and the upcoming Shanghai upgrade, we are offering a limited-time promotional period with 0% validator fees until August 1, 2023. This means you can enjoy maximum returns on your staked Ethereum with absolutely no fees.
And there's more! We have not forgotten our loyal existing clients. If you are a current client and decide to add additional stakes to your account, you will also benefit from the 0% fee promotion. This is our way of thanking you for your continued support and trust in our platform.
In conclusion, our Ethereum Staking dApp is here to revolutionize the staking experience for Ethereum users. Our commitment to privacy, autonomy, security, and innovation is at the core of our product. We invite you to try out our Staking dApp and join us in this exciting journey towards a decentralized and empowered future.
If you have any questions or need assistance, please reach out to our BD team! Happy staking, and welcome to the future of Ethereum staking!
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<p>MultiversX is a recently redesigned blockchain that enables innovative applications in various fields, including the emerging metaverse. The platform has a bold vision, and its staking scheme is also quite unique. At P2P.ORG, we have decided to closely examine the rewards formula, analyze validators’ and delegators’ intentions, and try to predict the future of MultiversX's staking economy.</p><p><strong>MultiversX. A high-margin validator market. Less institutional, more community-oriented approach</strong><br></p><p>Unique facts about MultiversX staking:</p><ul><li>The Palm Tree Network takes a 70% higher commission from their clients than P2P.ORG and still their clients have a better APR P2P.ORG clients</li><li>White Label nodes services are not widely distributed</li><li>Institutional clients tend to distribute their stake across multiple validators, and do not heavily focus on one</li><li>Fees are higher compared to other blockchain networks. E.g: Let’s compare it with Near Protocol</li></ul><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2573.png" class="kg-image" alt loading="lazy" width="1680" height="944" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2573.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2573.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2573.png 1600w, https://p2p.org/economy/content/images/2023/04/2573.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>As we can gather from the official explorers, most of the heavily staked validators charge 15% fee or higher. This makes MultiversX attractive even for small validators looking to survive the severe bear market conditions.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2574.png" class="kg-image" alt loading="lazy" width="1680" height="944" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2574.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2574.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2574.png 1600w, https://p2p.org/economy/content/images/2023/04/2574.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>Many validators are also big community contributors and work hard on projects alongside the foundation. This is because nodes can currently only be allocated by the foundation or by the "queue". There are currently 79 nodes in the queue waiting to join the active set. During this period, they use stake but do not generate any profit. This queue can take several months due to high demand and a fixed number of nodes. This explains why white-label node services are not widely distributed.</p><p>In short, the interest in staking is consistently rising among MultiversX users. Due to the fixed number of nodes, there is high demand for each staking provider, and they can therefore charge higher fees. It is also worth noting that validating in MultiversX requires running multiple nodes instead of just one. Validators typically spend more on infrastructure and engineering teams.</p><p>The greater the stake a validator receives, the lower the APR it can offer. This is why institutional clients tend to distribute their stake across multiple validators, rather than heavily focusing on one.</p><p><strong>A detailed description of the MultiversX staking model. All the possible ways to maximize the number of rewards</strong></p><p>Stake in MultiversX is separated into 2 parts:</p><p>• Base stake</p><p>• Top-up stake</p><p>The base stake is allocated to nodes participating in network validation. The maximum number of nodes that can participate in validation is 3200, and each node must be staked with a minimum of 2,500 EGLDs. Validators can have as many nodes as they want, but there are a few points to keep in mind:</p><p>Imagine you have five nodes, all of which participate in the validation process and generate income for you. Your total stake is 12,500 EGLDs. Someone has given you an additional 5,000 EGLDs, which you can use to run two more nodes, increasing your stake to a total of 17,500 EGLDs across seven nodes. However, the maximum capacity of 3,200 nodes in the network is already occupied by nodes of other validators, which means that your two new nodes, with only 5,000 EGLDs each, must wait in a queue before they can begin validation. While they wait in the queue, they do not generate any rewards but still cost to maintain. Unfortunately, the queue moves slowly, and it's possible that you'll have to wait for months because there are other nodes ahead of yours and nodes in the validating pool don't leave very often. What's the solution? The solution is to top-up your stake.</p><p>The top-up stake is a type of stake that you can use if you don't have the possibility to run new nodes or wait in a long queue. In the example above, we have 5 nodes with 2,500 EGLDs each, totalling 12,500 EGLDs at stake. We have an extra 5,000 EGLDs of stake, but we can't run new nodes to stake it. In this case, these 5,000 EGLDs will automatically become a Top-up stake. Therefore, we have a total of:</p><ul><li>12,500 EGLDs of base stake, as we have 5 nodes allocated with 2,500 EGLDs each</li><li>5,000 EGLDs of Top-up stake</li><li>Total of 17,500 EGLDs<br></li></ul><p>So, what is the difference between Top-up and base stake? The difference lies in the number of rewards that the validator gains for each stake.</p><p>You can find all the formulas behind our calculations <a href="https://docs.multiversx.com/economics/staking-providers-apr?ref=p2p.org">here</a>:</p><p>Genesis Total Supply = 20M EGLDs<br>inflation Rate = 8.56% (year 3)<br>P = 2 000 000<br>Total Nodes = 3 200<br>Eligible Top Up Stake = 3 863 418,56 <br>Total Top Up Stake = 7 571 288,70<br>Protocol Sustainability Rewards = 10%<br>Num Days in A Year = 365<br>Top-up Factor = 0.5</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2575.png" class="kg-image" alt loading="lazy" width="1680" height="774" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2575.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2575.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2575.png 1600w, https://p2p.org/economy/content/images/2023/04/2575.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>As you can see, there is a reward of 2753 EGLDs for base stake and 1469 EGLDs for Top-up stake. The reward for base stake is twice as large as the reward for Top-up stake, and it will be distributed among validators. To calculate these rewards, use the following formulas:</p><figure class="kg-card kg-image-card"><img src="https://lh3.googleusercontent.com/XCjZMlY_E8eHou6miZvWZhzMuW5ghPl9vd7GnZ1pSgnAyZa4bWxAOtBHgNghMm50deO39RhWVxZ5T4TwsMGkWQBYNFAR9kq7MBP5H5KXT8ziqwvOIwlhUEMqDMNGLSzRzyrgJoiz3-hAIPiutXoYhcg" class="kg-image" alt loading="lazy" width="602" height="48"></figure><figure class="kg-card kg-image-card"><img src="https://lh5.googleusercontent.com/W5v_rqksWhmKMDevkORzCmELj6kD3Io8h72AQ1T_AGwiGBbq0o2RDFa7yw0HEfy2JHdgyuU6LuG_llcoAG5KqvA3FAQ0durjtw8lbZoruKzs1SH6zAqkvqbZD-FG4n7BuqfIp90Fh-jaKbj-QPAnyCs" class="kg-image" alt loading="lazy" width="602" height="48"></figure><p>We can calculate final rewards for an epoch. Let’s consider P2P.ORG and The Palm Tree Network:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2576.png" class="kg-image" alt loading="lazy" width="1680" height="331" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2576.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2576.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2576.png 1600w, https://p2p.org/economy/content/images/2023/04/2576.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>The main reason is that The Palm Tree Network's base stake accounts for 58% of their total stake, which is allocated on 76 nodes. On the other hand, P2P.ORG only has 39% of their base stake out of the total. The current APR for each type of stake is as follows:</p><p>Reward Base x 365/ Base Stake = 12.5% for base stake</p><p>Reward Top-up x 365/ Top-up Stake = 7% for Top-up stake</p><p>One key point is the idea that if you have a large amount of base stake, you can charge higher fees to your clients while still providing a good APR. To calculate a client's APR with the real validator fees of P2P at 10% and Palm Tree at 17%, use the following formula:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2577.png" class="kg-image" alt loading="lazy" width="1680" height="331" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2577.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2577.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2577.png 1600w, https://p2p.org/economy/content/images/2023/04/2577.png 1680w" sizes="(min-width: 720px) 720px"></figure><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2579.png" class="kg-image" alt loading="lazy" width="1680" height="974" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2579.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2579.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2579.png 1600w, https://p2p.org/economy/content/images/2023/04/2579.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>We have been delegated approximately 6,000 EGLDs twice. As a result, our overall stake has increased by almost 10%, while our top-up stake has increased by 20%. Although our TVL and share have both increased and our APR has dropped. The Palm Tree Network, on the other hand, has not experienced any major changes in their stake. They only received an additional 1,500 EGLDs, which is approximately 1% of their top-up stake.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2580.png" class="kg-image" alt loading="lazy" width="1680" height="974" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2580.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2580.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2580.png 1600w, https://p2p.org/economy/content/images/2023/04/2580.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>Should a validator increase their Total Value Locked (TVL) if they do not have enough nodes to allocate all stakes? Increasing your Top-up stake may result in a drop in client APR, making you less attractive to potential delegators. However, you must grow your TVL to be profitable or at least cover costs, which is not easy these days. Cryptocurrency prices are not as high as they were a year ago, while infrastructure costs have increased significantly.</p><p>After some research, we have found a solution that may seem strange at first, but will ultimately help us work efficiently, cover all costs, and provide a stable service for our delegators. The solution is to raise fees. While raising fees will increase our income, there is a good possibility that our delegators won't lose in the long run.</p><p>Initially, after the fee raise, our delegators may lose some of their rewards, and we should expect a churn of delegators and TVL. However, just as new delegations become a top-up stake due to a lack of nodes, in the case of an unstake, the top-up stake goes first. As a result, the share of the base stake increases, and the client's APR starts to grow along with the growth of rewards share for the base stake.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2581.png" class="kg-image" alt loading="lazy" width="1680" height="974" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2581.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2581.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2581.png 1600w, https://p2p.org/economy/content/images/2023/04/2581.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>The plot above illustrates how income and APR will change after a fee raise and the next stake churn. The blue vertical line represents our current APR, which is around 8.15%. The lowest blue horizontal curve shows our current state where we have the same fee at 10%, and how income and APR will change if we face churn of stake. Churn will lead us to a situation where our top-up stake and income drops at the same time. However, the client's APR will grow as the share of the base stake grows. The end of the line signals that all top-up stake was unstaked, and we are left only with the base stake. The result is a high client's APR; however, we face a loss of 1/3 of our current income.</p><p>All other lines show the same for different fees. The more fees we take, the more income we have. However, it also provides a very low client's APR, and we have to lose a significant amount of our TVL to return to the situation of our current APR.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/2582.png" class="kg-image" alt loading="lazy" width="1680" height="904" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/2582.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/2582.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/2582.png 1600w, https://p2p.org/economy/content/images/2023/04/2582.png 1680w" sizes="(min-width: 720px) 720px"></figure><p>To give you a better understanding of how it works, we have provided a plot above. The blue line indicates the optimal point for the current APR (~8.15%), which depends on stake, top-up stake, and fee. The top point on the blue line represents the current state with a fee of 10%, stake at 116,000 EGLD, and top-up stake near 71,000 EGLD.</p><p>If we were to raise the fee to 34-35%, we would need to lose nearly half of our stake (55,000 EGLD) to return to the value of 8.15% for the client's APR. This would occur if our TVL dropped to 62,000 EGLD from 116,000 EGLD, and the share of base stake became nearly 70% (currently only 39%).</p><p>However, after some time, the APR will return to its previous values as the share of top-up stake drops.</p><h3 id="future-prospects"><br>Future prospects.<br></h3><p>In the MultiversX network, the amount of staked tokens is rapidly increasing. According to the MultiversX roadmap, liquid staking is coming, which will cause a slight decrease in the average APR across the entire network. It's good that the foundation is not trying to increase the APR, it could affect the stability of the exchange rate and prevent the coin from becoming deflationary.</p><p>The next big change in MultiversX is called "Phase 4", in which the queue will be replaced by the auction list. Validators who are shuffled out of the Eligible list will be moved to this auction list, and only the ones with the highest top-up will be further promoted to the waiting list and made eligible. The amount of base stake per node will remain at 2,500 EGLD. Thus, validators will have the intention to attract delegation, making the field more competitive. This might transform validators into builders, while maintaining high margins for validators.</p><p>As shown in the previous section, P2P.ORG could be more efficient and save the current APR by reducing the TVL and increasing the fee. <strong>On April 25th, P2P.ORG will change the fee to 17%</strong> and for a short period of time, the APR will decrease from 8.1% to 7.5%, but we expect growth to the previous values after some time due to the churn of top-up stake.</p><p>We want to thank all our delegators for their continuous support and for staking with us!</p><p><br></p>
from p2p validator
<h1 id="introduction"><strong>Introduction</strong></h1><p>In this post, we will take a deep dive into the Ethereum network during the month of March 2023. Our goal is to provide a comprehensive analysis of the network and its various components. Here are the topics we explore:</p><ul><li><a href="https://p2p.org/economy/ethereum-staking/#:~:text=Ethereum%20staking%20ecosystem.-,Network%20Overview,-As%20of%20March">Network Overview</a></li><li><a href="https://p2p.org/economy/ethereum-staking/#:~:text=Staking%20review%20by%20segment">Review by staking segments</a></li><li><a href="https://p2p.org/economy/ethereum-staking/#:~:text=validators%20is%20public.-,Lido%20operators,-When%20staking%20involves">Lido operators performance</a></li><li><a href="https://p2p.org/economy/ethereum-staking/#:~:text=block%2016867030.-,P2P.org%20overview,-The%20top%203">P2P.org overview</a></li><li><a href="https://p2p.org/economy/ethereum-staking/#:~:text=Tweets%20and%20articles%20of%20the%20month">Best tweets and articles</a></li></ul><p>All the data was sourced from our own validators, <a href="http://beaconcha.in/?ref=p2p.org">beaconcha.in</a> and <a href="https://www.rated.network/?ref=p2p.org">rated.network</a>. We considered only staking providers whose information is publicly available, meaning this list isn’t a complete picture of the Ethereum staking ecosystem.</p><h1 id="network-overview">Network Overview</h1><p>As of March 2023, the total amount of Ethereum staked has reached <strong>17,963,528 ETH</strong>, which is <strong>5.26%</strong> higher than the previous month's total stake. This is a significant increase, demonstrating the growing interest in Ethereum staking. The amount staked now represents approximately <strong>15.04%</strong> of the total circulating supply of Ethereum, which is a strong indication of the confidence that investors have in the platform. It is worth noting that this is a considerable increase from just a few months ago, demonstrating the rapid growth of the Ethereum ecosystem.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/01-Network-Overview-1.png" class="kg-image" alt loading="lazy" width="1996" height="1199" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/01-Network-Overview-1.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/01-Network-Overview-1.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/01-Network-Overview-1.png 1600w, https://p2p.org/economy/content/images/2023/04/01-Network-Overview-1.png 1996w" sizes="(min-width: 720px) 720px"></figure><p>Despite the increase in the total amount of Ethereum staked, the current network-wide average annual percentage rate (APR) for Ethereum staking is around 4.1**%**, which is a 0.0738 percentage point increase from the previous month. The consensus rewards have increased by 0.2518 points, but the execution rewards have decreased by 0.178 points due to the increase in the number of validators in the network. The table below shows the top 5 block MEV rewards.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/02-Network-Overview-2.png" class="kg-image" alt loading="lazy" width="1978" height="669" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/02-Network-Overview-2.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/02-Network-Overview-2.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/02-Network-Overview-2.png 1600w, https://p2p.org/economy/content/images/2023/04/02-Network-Overview-2.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>For investors interested in Ethereum staking, it is important to be aware and understand the risks involved. Additionally, during March, 4 <strong>validators</strong> from the network were slashed, one of which belongs to Rocket Pool</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/03-Network-Overview-3.png" class="kg-image" alt loading="lazy" width="1978" height="584" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/03-Network-Overview-3.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/03-Network-Overview-3.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/03-Network-Overview-3.png 1600w, https://p2p.org/economy/content/images/2023/04/03-Network-Overview-3.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>This highlights the risks involved in Ethereum staking and the importance of carefully selecting validators to stake with.</p><h1 id="staking-review-by-segment">Staking review by segment</h1><p>The upcoming Shanghai update for Ethereum, scheduled for April 12, has holders of liquid staking tokens eagerly anticipating how the event will impact their holdings. Prior to the update, any ETH deposits into these protocols could not be withdrawn from Ethereum's deposit-only Proof-of-Stake (PoS) system. After the Shanghai event, users will be able to unstake their ETH, sell their stakes, or migrate to a different staking service.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/04-Staking-review-by-segment-1.png" class="kg-image" alt loading="lazy" width="1978" height="912" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/04-Staking-review-by-segment-1.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/04-Staking-review-by-segment-1.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/04-Staking-review-by-segment-1.png 1600w, https://p2p.org/economy/content/images/2023/04/04-Staking-review-by-segment-1.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>For the current period, liquid staking increased to a total of 33.33%. This value is 2.38 points higher than at the beginning of the year. Conversely, CEX stacking has decreased to 27.27%, which is 2.31 points lower than at the beginning of the year. Staking pools and unidentified validators have remained almost unchanged, at 16.97% and 22.43% respectively. As we can see, at the end of February there was a big amount of ETH deposited, one of them is the largest single daily inflow ever on the Lido platform in the amount of 150,000 ETH.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/05-Staking-review-by-segment-2.png" class="kg-image" alt loading="lazy" width="1978" height="1048" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/05-Staking-review-by-segment-2.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/05-Staking-review-by-segment-2.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/05-Staking-review-by-segment-2.png 1600w, https://p2p.org/economy/content/images/2023/04/05-Staking-review-by-segment-2.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>Lido is the largest liquid staking platform, which currently has over 31% of all staked ETH. Lido's popularity can be attributed to its ease of use and its ability to provide users with a flexible and secure way to stake their ETH. It is challenging to de-anonymize all validators, including their owners and whether they belong to centralized exchanges, staking pools or e.t.c. However, with Lido, all the information about the validators is public.</p><h2 id="lido-operators">Lido operators</h2><p>When it comes to ETH staking we should not only consider the APR as an important metric but also take into account validator effectiveness, which can be an even more accurate metric. Validator effectiveness indicates how much of your validator balance is being used for attestations, and is calculated as the effective balance as a fraction of the total balance. <a href="https://p2p.org/?ref=p2p.org">P2P.org</a> published an article explaining why validator effectiveness is a better metric than APR, and providing tips on how to choose the best staking operator.</p><p>In this regard, two of the highest-performing validators in the market are Allnodes and Attestant. These validators have an effectiveness rating of 97.25%, which means they are highly efficient in terms of attestation.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/06-Lido-operators.png" class="kg-image" alt loading="lazy" width="1978" height="1044" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/06-Lido-operators.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/06-Lido-operators.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/06-Lido-operators.png 1600w, https://p2p.org/economy/content/images/2023/04/06-Lido-operators.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>The top 3 by validator effectiveness is <strong><a href="https://p2p.org/?ref=p2p.org">P2P.org</a></strong> with the highest APR in the top 5 effectiveness rating over the last 30 days. We will explore this in more detail in the next section.</p><p>We would also like to note that Staking Facilities and Everstake had the highest APR in March. Staking Facilities has an APR of 9.96%, with an execution APR of 6.07%. This value is approximately 50% higher than their average APR, due to a very large MEV block reward of around 692 ETH for block <a href="https://beaconcha.in/block/16867030?ref=p2p.org">16867030</a>.</p><h1 id="p2porg-overview">P2P.org overview</h1><p>The top 3 by validator effectiveness is <strong><a href="https://p2p.org/?ref=p2p.org">P2P.org</a></strong> with the highest APR in the top 5 effectiveness rating over the last 30 days.</p><h2 id="rewards">Rewards</h2><p>For March, all active validators on the network generated a mean rewards rate of 0.1345 ETH. The average reward of P2P’s validators was 0.1386 ETH, around 3% higher than the mean performance of all the active validators on the network</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/07-AVG-validator-rewards.png" class="kg-image" alt loading="lazy" width="1978" height="649" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/07-AVG-validator-rewards.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/07-AVG-validator-rewards.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/07-AVG-validator-rewards.png 1600w, https://p2p.org/economy/content/images/2023/04/07-AVG-validator-rewards.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>This is mostly due to P2P's enterprise-grade infrastructure, which maximizes node uptime and rewards, while also utilizing MEV-Boost to extract additional value during block production.</p><h2 id="consensus-performance">Consensus performance</h2><p>The primary metric commonly used when choosing a staking provider is APR. However, due to Ethereum’s complex rewards structure, it’s better to compare staking providers by their validator’s effectiveness rather than APR. We conducted extensive research on the topic, and you can read about it <a href="https://www.stakingrewards.com/journal/choosing-the-best-using-metrics-and-data-to-choose-the-right-ethereum-validator/?ref=p2p.org">here.</a></p><h3 id="earned">Earned</h3><p>Validators may receive fewer consensus rewards due to missed attestations and errors that result in penalties. Here, we compare the average share of rewards of the network and <a href="https://p2p.org/?ref=p2p.org">P2P.org</a>.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/08Earned.png" class="kg-image" alt loading="lazy" width="1978" height="1225" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/08Earned.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/08Earned.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/08Earned.png 1600w, https://p2p.org/economy/content/images/2023/04/08Earned.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>The network average share of consensus layer rewards was 98.29%, while that of <a href="https://p2p.org/?ref=p2p.org">P2P.org</a> is 99.18%, which is 0.89 percentage points above the network average</p><h3 id="attestation-rate-correctness">Attestation rate & correctness</h3><p>The attestation rate measures how often a validator successfully attests new proposed blocks to the rest of the network. If a validator is down or cannot attest blocks for other reasons, its attestation rate and, therefore, rewards will decrease. Attestation correctness is another essential metric to consider, as it measures the accuracy of a validator's attestation. Validators must attest to the correct block or face penalties, including potential slashing. Accurate attestations are crucial for maintaining the integrity and security of the Ethereum network, making attestation correctness an essential metric to consider.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/09-Attestation-rate.png" class="kg-image" alt loading="lazy" width="1978" height="1074" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/09-Attestation-rate.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/09-Attestation-rate.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/09-Attestation-rate.png 1600w, https://p2p.org/economy/content/images/2023/04/09-Attestation-rate.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>In March, the network's average attestation rate was approximately 99.6%, while P2P's attestation rate was 99.98%, which is 0.38% higher than the network average. The network's average attestation correctness was approximately 98.91%. Meanwhile, P2P's attestation rate was 99.36%, which is 0.45% higher than the network average.</p><h2 id="execution-performance">Execution performance</h2><p>The execution layer is the layer on the Ethereum blockchain that provides the environment for applications and smart contracts to operate and process transactions within and between applications. In general, there are two types of execution layer rewards: transaction priority tips and MEV tips.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/10-Execution-performance.png" class="kg-image" alt loading="lazy" width="1978" height="457" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/10-Execution-performance.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/10-Execution-performance.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/10-Execution-performance.png 1600w, https://p2p.org/economy/content/images/2023/04/10-Execution-performance.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>There is a high risk of missing a block when the MEV relay proposes it for an extended period of time. Therefore, we create the block ourselves, which is why we haven't achieved 100% success rate. In March 2023, <a href="https://p2p.org/?ref=p2p.org">P2P.org</a> had 96.4% of the MEV blocks, with 3052 proposed blocks and a proposal rate of 99.97%. Here are the top 5 blocks with the highest MEV rewards:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/11-to-5-mev.png" class="kg-image" alt loading="lazy" width="1978" height="657" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/11-to-5-mev.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/11-to-5-mev.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/11-to-5-mev.png 1600w, https://p2p.org/economy/content/images/2023/04/11-to-5-mev.png 1978w" sizes="(min-width: 720px) 720px"></figure><h3 id="slashing">Slashing</h3><p>A slashing event occurs when a validator misbehaves on the network. This is the most severe penalty a validator can suffer, and it results in the loss of a portion of their staked tokens.</p><p>During March, P2P had no slashing occurrences. We are proud to maintain a flawless record of zero slashing events throughout our time running Ethereum validators.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/04/12-Execution-performance--1-.png" class="kg-image" alt loading="lazy" width="1978" height="509" srcset="https://p2p.org/economy/content/images/size/w600/2023/04/12-Execution-performance--1-.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/04/12-Execution-performance--1-.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/04/12-Execution-performance--1-.png 1600w, https://p2p.org/economy/content/images/2023/04/12-Execution-performance--1-.png 1978w" sizes="(min-width: 720px) 720px"></figure><p>P2P operates validator infrastructure securely, to minimize the risk of being slashed, and provides coverage to mitigate any losses in the event of a slashing incident.</p><h1 id="tweets-and-articles-of-the-month">Tweets and articles of the month</h1><p><br>Check out P2P.org best tweets and articles for March 2023</p><ol><li> <strong>A deep dive into withdrawals</strong>. What will the post-Shapella market look like? We researched the market landscape and withdrawal documentation comprehensively to highlight the pitfalls and insights about the upcoming changes. <a href="https://twitter.com/P2Pvalidator/status/1643974124145102849?ref=p2p.org">Read the Twitter thread and check the full post here</a></li><li><strong>Choosing the best validator</strong>. Dive into our ultimate guide on choosing the best Ethereum validator for the Shanghai update Metrics, slashing insurance, SLA & more. <a href="https://www.stakingrewards.com/journal/choosing-the-best-using-metrics-and-data-to-choose-the-right-ethereum-validator/?ref=p2p.org">Read article</a></li><li><strong>Calculate possible APR</strong>. Ethereum APR is highly influenced by random factors like the number of blocks created or MEV. But how do you know if your APR is good or not? We've developed an advanced APR simulator, that calculates the average expected APR and possible deviations. <a href="https://p2p.org/networks/ethereum/apr-simulator?ref=p2p.org">Try it out</a></li></ol>
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