What is autocompounding?
Autocompounding is an automatic process of accumulating the CL rewards that a validator is liable for, which are then added to the validator’s stake. This increases the amount of staked tokens over time. Execution Layer rewards are still distributed to the fee-recipient address chosen.
Note
Rewards are determined by the Ethereum protocol and network conditions, are variable, and are not guaranteed. P2P.org does not control or set reward rates.
Slashing, validator downtime, and protocol changes can reduce or eliminate rewards. These risks are protocol defined and client borne. P2P.org does not insure against rewards loss.
Turning on auto-compounding for an existing validator can be done in the P2P.org dApp by upgrading 0x01 validator(s) to 0x02 (Pectra) type validator(s).
💡 IMPORTANT:
The upgrade is one-way. A 0x02 validator cannot be downgraded back to 0x01. If you no longer want auto-compounding, you'll need to fully exit the validator, withdraw the ETH, and create a new 0x01 validator from scratch.
The upgrade does not transfer custody to P2P.org. The ETH remains client controlled throughout.
Prerequisites
Validator must be 0x01 type
Validator must be active(not pending or exiting)
Action must be signed by the deposit address(address that initiated and funded the stake) or withdrawal address( address specified as withdrawal address when stake was initiated)
How to upgrade a validator
Connect your wallet in the dApp https://eth.p2p.org/staking
Click the 3 dots next to the 0x01 validator you want to upgrade and click Upgrade.
Sign the transaction in your wallet. The upgrade should take ~5 minutes.
After the validator is upgraded to 0x02, it should have a 0x02 tag and all functions applicable for autocompounding validators(Top up, Merge and Partial withdraw).
That’s it! The validator is now upgraded to 0x02.
For more information on staking Ethereum (ETH) with P2P.org and our special offer for large ETH delegations, visit https://p2p.org/networks/ethereum
For additional staking support, visit the P2P.org ETH Help Centre.
You can also get in contact with a live agent by selecting the speech bubble at the bottom right of this page, sending a message to the Telegram bot, or emailing [email protected].