A virtual machine functions like a physical computer, allowing applications and operating systems to be run on it. The largest smart contract development platform, the Ethereum Virtual Machine (EVM), utilizes the computational power of a network of nodes distributed worldwide.
The Ethereum network is by far the biggest and most popular smart contract network, so there is immense utility in developing EVM-compatible applications. By creating an EVM-compatible blockchain, a lot of developer attention can be captured, allowing some of these dApps to be ported over from the Ethereum network.
Neon EVM is an Ethereum virtual machine on Solana, developed by Neon Labs, that allows Ethereum-based smart contracts and dApps to take advantage of Solana native functionalities.
Neon EVM
The Ethereum virtual machine (EVM) does not exist as a tangible machine but as an entity maintained by all the nodes running the Ethereum client. More than a decentralized ledger typically used to define blockchains, the EVM defines the rules by which changes happen from block to block. In essence, the EVM functions as a decentralized computer which allows smart contracts to exist on the Ethereum Network. From DeFI to games and other dApps in the ecosystem, the EVM allows these to function.
While Ethereum bolsters the biggest on-chain economy of any blockchain, gas fees and transaction speeds can be counterproductive to the development of its ecosystem. In comparison, Solana allows users to transact at low cost and at faster rates thanks to its ability to process transactions in parallel. A highly optimized EVM chain can process up to 1,500 transactions per second (TPS), whilst Solana can reach upwards of 50,000 TPS.
One of the challenges when developing a blockchain ecosystem is attracting developers to work on it. The difference in programming languages and developing tools used by both chains makes porting popular Ethereum-based applications to the Solana network a difficult task. By making Solana EVM compatible, Ethereum developers can make use of their already existing code base and expertise on the Solana network.
How does Neon EVM work?
Neon EVM is an on-chain solution that works by wrapping Ethereum-like transactions into Solana transactions and then sending them to the Solana network. One of Ethereum's limiting factors is how transactions are processed. Solidity smart contracts need to be executed sequentially so that only one contract at a time can modify the blockchain state.
In contrast, Solana allows for parallel execution of transactions through a functionality called Sealevel, which uses as many cores as are available to the validator. Because Solana transactions describe all the states a transaction will read or write during its execution, they can be processed in parallel, thus avoiding unwanted overlaps.
Neon EVM enables any Ethereum native application to run on Solana without requiring any changes to its codebase. Developers can continue to write smart contracts in Solidity, and users can continue to use MetaMask. Anyone using Neon EVM can port over Ethereum transactions to Solana. This approach allows popular applications such as Uniswap, Curve and MakerDAO to be built natively on Solana with much less friction and resources. This reduces development requirements and time savings while granting access to Solana's large liquidity.
What are Neon EVM key features?
Neon Web3 Proxy
Neon EVM Proxy operators are key players in the Neon EVM ecosystem. They run special servers, known as Neon Proxies, that enable Ethereum-based applications (dApps) to function seamlessly on the Solana network with minimal reconfiguration. The primary task of a proxy operator is to set up and manage these Neon Proxy servers. They provide an interface that accepts transactions formed according to Ethereum rules, transform Ethereum-like transactions into a series of Solana transactions, and ensures these transactions are successfully executed on the Solana network, enabling dApps to benefit from the speed and efficiency of the Solana network.
Neon EVM proxy operators are crucial in enabling Ethereum-based applications to run smoothly on Solana's network. As they manage Neon Proxy servers, they incur transaction costs on Solana, paid in lamports, for executing the Solana portion of Neon EVM users' transactions. To compensate for these costs, Neon EVM automatically retrieves an equivalent amount of ERC-20 tokens from the users plus a small additional fee, which is shared between the operators and the Neon treasury. Initially, users will only pay these fees in Neon tokens, but as per the project roadmap, they will eventually be able to choose from any supported ERC-20 tokens. While these fees are minimal from a user's perspective, they can accumulate to a significant sum for proxy operators, depending on the number of Neon EVM users and their activity level. Therefore, this fee structure covers the operational costs of the proxy operators and serves as a revenue stream for the Neon proxy operators and the Neon DAO treasury, making it a pivotal part of the Neon EVM economy.
Why is P2P.org working with Neon Labs?
How Neon EVM could benefit the Solana ecosystem
Projects that are supporting Neon EVM
How to start using Neon EVM?
NEON token is necessary to make transactions in the Neon EVM as it is used as gas required for covering the Neon EVM transaction fees (more tokens will be supported in the future), so ensure you have enough NEON tokens for your planned activities. Here's an instruction on how to get Neon tokens and transfer them to Neon EVM:
1. Purchase NEON tokens: buy NEON tokens from CEXes such as Gate.io, ByBit, or CoinList.
2. Transfer NEON tokens to a Solana-compatible wallet: create or open a Solana-compatible wallet like Phantom / Solflare / Key App and copy the wallet address. Withdraw NEON from your CEX wallet to the Solana wallet following the instructions provided by the CEX platform.
3. Setup an EVM-compatible wallet: install an EVM-compatible wallet like MetaMask in your browser and set up your wallet:
Option A: Automatic Setup with Chainlist.org
Option B: Manual Configuration
5. Click "Save".
4. Use NeonPass to transfer NEON to Neon EVM: once the NEON tokens are in your Solana-compatible wallet, use the NeonPass (https://neonpass.live) transfer interface to move your tokens to Neon EVM. You can cover the transaction cost in NEON or SOL tokens. After completion, your funds will be available on the Neon EVM network, i.e., in your EVM-compatible wallet.
5. Start Using NEON on Neon EVM: now that your NEON tokens are in your EVM-compatible wallet on the Neon EVM, you can start using them for transaction costs or other uses in the Neon EVM ecosystem (you will be able to interact with the protocols deployed on the Neon EVM via corresponding dApps using Metamask). You can find the protocols that are supported by Neon EVM here: https://neonfoundation.io/ecosystem
<p></p><p>P2P.org is thrilled to announce the release of our latest feature, the Staking API. </p><p>Our new product lets you kickstart robust staking solutions as part of your own product offering, backed with comprehensive analytical tools, providing unparalleled insights into staking activities and volumes. </p><p>Additionally, powerful dashboards, enriched with granular data, enabling informed decision-making and better strategies for your teams. These analytical capabilities simplify tax and financial obligations, ensuring compliance while keeping you on top of your staking strategy for your users. Let's jump into some of the key features.<br></p><p><strong>A Gateway to Robust Infrastructure</strong><br></p><p>P2P.org's Staking API isn't just a new feature to our already robust portfolio of tools and services. It's a gateway to a high-performance validator infrastructure for your business. Staking API offers a seamless avenue to stake assets on our industry leading platform.<br></p><p><strong>Unsurpassed Security</strong><br></p><p>Security is always our number one priority. We've designed the Staking API with security measures that surpass industry norms, stringent Service Level Agreements (SLAs), comprehensive slashing protection, and various insurance options. Additionally, we've gone a step further by creating a unique insurance bundle that combines traditional insurance policies, blockchain-based alternative insurance, and an internal P2P.org treasury fund, providing optimal protection for your stakes.<br></p><p><strong>Simplicity at Its Best</strong><br></p><p>Staking API is user-friendly and readily accessible, thanks to comprehensive documentation, multi-language code examples, and a straightforward workflow. We've taken extensive measures to simplify staking, enabling easy navigation of the DeFi ecosystem.<br></p><p>You can review the API documentation here: <a href="https://docs.p2p.org/docs?ref=p2p.org">https://docs.p2p.org/docs</a> <br></p><p><strong>Unparalleled Support</strong><br></p><p>We're committed to delivering excellent customer service at P2P.org. With dedicated private Telegram chat support and round-the-clock node monitoring, we're always here to assist you on your staking journey and integration requirements to get you set up with ease.<br></p><p><strong>Tailored Staking Strategies</strong><br></p><p>With our Staking API, you can customize your staking strategy to suit your unique needs. Advanced node configuration lets you define node requirements, location, MEV relay, and much more. This flexibility enables a personalized staking experience tailored to your preferences and helps you build a tailored staking strategy to meet regulatory needs in an ever changing environment.<br></p><figure class="kg-card kg-image-card"><img src="https://lh6.googleusercontent.com/BjYDwz4hMQ8c1cAtVbZ64PoqjvWCsjCVOL883p9P52W0V0vW0LRoYfuoDF4zwox-5UPBVKfeNqURqlLi4zZo1UwWTIAAyGx9iGPFVszBgpNpnCEi_NKmItXC1D1pZlrGZr_nOwPEUiI7_mko_kqY-SA" class="kg-image" alt loading="lazy" width="568" height="358"></figure><p><strong>Comprehensive Analytical Tools</strong><br></p><p>In the age of big data, having comprehensive analytical tools at your fingertips can be a game-changer. Our Staking API delivers just that. Its insightful dashboard provides granular data about your staking activities and total volume, supported by real-time monitoring via our Data API. This powerful feature keeps you informed about the status of your assets at all times, allowing you to make data-driven decisions.<br></p><p><strong>Easy Integration for Greater Innovation</strong><br></p><p>For busy teams, time is always of the essence and a valuable commodity to any company. That's why we've designed our Staking API for quick and easy integration. Our thorough API documentation includes multiple code examples to expedite your integration process. Easy-to-follow guides allow your development team to get to grips with our integration requirements easily and efficiently.<br></p><p>Staking API isn't only about ease of use, it's also about flexibility. A single integration allows clients to streamline all their networks, saving substantial time and resources. This added convenience accelerates your product offering, letting you focus on business goals and growth.<br></p><p><strong>The Future of Staking</strong><br></p><p>Our mission is to propel a decentralized future, rooted in our conviction that custodians, wallets, and exchanges should not just observe, but actively participate in this transformational era for both crypto-native and traditional finance businesses. By providing a platform that opens a gateway to the immense potential of staking, we're enabling you to take a pivotal role in shaping the future of decentralized finance. With our Staking API, you can provide staking services to your customers, diversify your staking strategies, increase your revenue streams, and simplify integration processes across different networks.<br></p><p>With P2P.org's Staking API, we are elevating the staking space, providing an all in one solution that is powerful, secure, easy to use, and adaptable to your needs. We invite you to join us on this exciting journey as we continue to shape the future of staking, turning passion into performance at P2P.org. <br></p><p>To discover more, please book a demo with our team <a href="https://p2p.org/products/api?ref=p2p.org#contact-us">https://p2p.org/products/api#contact-us</a> <br><br><br><br></p>
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<h3 id="eigen-layer-restaking-alive">Eigen Layer restaking alive!</h3><p>EigenLayer <a href="https://twitter.com/eigenlayer/status/1669065156427681792?s=20&ref=p2p.org">successfully launched</a> Stage 1 Mainnet. This is a significant milestone and we are happy to be a part of this historical moment as one of the EigenLayer <a href="https://www.blog.eigenlayer.xyz/eigenlayer-stage-1-mainnet-launch/?ref=p2p.org#:~:text=Dimitry%20Ukhanov%20%2D%20P2P">community multisig members</a>!</p><p>Restaking doesn't generate any rewards right now since the launch of Actively Validated Services (AVS) generating these rewards is planned for a stage.</p><p>However, EigenLayer <a href="https://www.blog.eigenlayer.xyz/eigenlayer-mainnet-launch-benefits-of-early-restaking-2/?ref=p2p.org">highlights</a> that restaking early provides the earliest possible access to AVS rewards, as some services may cap their initial restake amounts.</p><p>EigenLayer launched with initial usage limits of 3200 for stETH, rETH, cbETH and 9600 ETH for native staking. The stETH cap of 3200 ETH was reached <a href="https://twitter.com/eigenlayer/status/1669085279020527616?ref=p2p.org">within the first hour</a> with rETH and cbETH following shortly afterwards! The team promises to increase limits progressively over the coming weeks and months. Although all liquid staking token (LST) options have already reached <a href="https://restaking.nethermind.io/?ref=p2p.org">their caps</a> native stakers still have time to become a part of early adopters (considering all risks that it might have)</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/06/Untitled--2-.png" class="kg-image" alt loading="lazy" width="2000" height="464" srcset="https://p2p.org/economy/content/images/size/w600/2023/06/Untitled--2-.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/06/Untitled--2-.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/06/Untitled--2-.png 1600w, https://p2p.org/economy/content/images/2023/06/Untitled--2-.png 2378w" sizes="(min-width: 720px) 720px"></figure><h3 id="restaking-with-p2porg">Restaking with P2P.org</h3><p>You are already able to restake your ETH with <a href="http://p2p.org/?ref=p2p.org" rel="noopener noreferrer">P2P.org</a> Ethereum staking dApp. Our non-custodial staking dApp already supports customization of validator withdrawal addresses, which is the basic requirement for native restaking to an EigenPod. Below we have prepared a step-by-step guide on how to do this. However, before restaking, please take note:</p><div class="kg-card kg-callout-card kg-callout-card-yellow"><div class="kg-callout-emoji">⚠️</div><div class="kg-callout-text">Withdrawal address is used for getting your ETH deposit back. Its specified once, and nobody can change it after the staking deposit is sent because the network cements the association of a particular validator and withdrawal address. When you decide to put EigenPod Address as a withdrawal address, you accept Eigen Layer smart contract risk and understand that <a href="http://p2p.org/?ref=p2p.org" rel="noopener noreferrer">P2P.org</a> can't change this address.</div></div><p>To restake you first need to set up an EigenPod address that will be connected with your wallet. This EigenPod address will be used as the withdrawal address in the P2P.org staking dApp. To do this:</p><ol><li>Go to <a href="https://app.eigenlayer.xyz/?ref=p2p.org">https://app.eigenlayer.xyz/</a> and connect a wallet:</li></ol><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/06/Untitled--3-.png" class="kg-image" alt loading="lazy" width="2000" height="1225" srcset="https://p2p.org/economy/content/images/size/w600/2023/06/Untitled--3-.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/06/Untitled--3-.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/06/Untitled--3-.png 1600w, https://p2p.org/economy/content/images/size/w2400/2023/06/Untitled--3-.png 2400w" sizes="(min-width: 720px) 720px"></figure><p>2. Click “Create EigenPod” and confirm this transaction in your wallet:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/06/Untitled--4-.png" class="kg-image" alt loading="lazy" width="2000" height="1180" srcset="https://p2p.org/economy/content/images/size/w600/2023/06/Untitled--4-.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/06/Untitled--4-.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/06/Untitled--4-.png 1600w, https://p2p.org/economy/content/images/size/w2400/2023/06/Untitled--4-.png 2400w" sizes="(min-width: 720px) 720px"></figure><p>3. A confirmation message will confirm your EigenPod was created successfully:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/06/Untitled--5--1.png" class="kg-image" alt loading="lazy" width="2000" height="1130" srcset="https://p2p.org/economy/content/images/size/w600/2023/06/Untitled--5--1.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/06/Untitled--5--1.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/06/Untitled--5--1.png 1600w, https://p2p.org/economy/content/images/size/w2400/2023/06/Untitled--5--1.png 2400w" sizes="(min-width: 720px) 720px"></figure><p>4. Click “Pod Details” and copy your EignePod address:</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/06/Untitled--6-.png" class="kg-image" alt loading="lazy" width="2000" height="1276" srcset="https://p2p.org/economy/content/images/size/w600/2023/06/Untitled--6-.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/06/Untitled--6-.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/06/Untitled--6-.png 1600w, https://p2p.org/economy/content/images/2023/06/Untitled--6-.png 2364w" sizes="(min-width: 720px) 720px"></figure><p>5. Visit <a href="http://eth.p2p.org/?ref=p2p.org" rel="noopener noreferrer">eth.p2p.org</a> to complete the next step in the process: Staking your ETH to an Ethereum validator. This step takes around 2 min and does not require registration or KYC. The below image shows how to complete this simple process, but note that <strong>you must set your EigenPod address as the validator withdrawal address</strong>.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/06/Untitled--7-.png" class="kg-image" alt loading="lazy" width="1752" height="1372" srcset="https://p2p.org/economy/content/images/size/w600/2023/06/Untitled--7-.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/06/Untitled--7-.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/06/Untitled--7-.png 1600w, https://p2p.org/economy/content/images/2023/06/Untitled--7-.png 1752w" sizes="(min-width: 720px) 720px"></figure><p>6. After this step is complete your ETH will enter the validator entry queue, and by the time your ETH validator is live your EigenPod balance will immediately reflect the stake. <strong>Note that current entry queue time is approximately 45 days</strong>. You can check the current activation time in our <a href="https://reports.p2p.org/superset/dashboard/128/?ref=p2p.org">Ethereum queue dashboard</a>.</p><p>7. The last but not least step is changing the execution rewards address (rewards for proposing new blocks). By default, it is set to the withdrawal address. However, since you have set up EigenPod as the withdrawal address, <strong>you need to choose a different wallet to receive these execution rewards</strong>. This is because the EigenPod address does not accept direct transactions from MEV bots. To accomplish this, you should reach out to P2P.org support through the dedicated chat in the staking dApp.</p><figure class="kg-card kg-image-card"><img src="https://p2p.org/economy/content/images/2023/06/Untitled--9-.png" class="kg-image" alt loading="lazy" width="1608" height="884" srcset="https://p2p.org/economy/content/images/size/w600/2023/06/Untitled--9-.png 600w, https://p2p.org/economy/content/images/size/w1000/2023/06/Untitled--9-.png 1000w, https://p2p.org/economy/content/images/size/w1600/2023/06/Untitled--9-.png 1600w, https://p2p.org/economy/content/images/2023/06/Untitled--9-.png 1608w" sizes="(min-width: 720px) 720px"></figure>
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