Institutional Ethereum Staking with P2P.org

Ethereum uses “Proof-of-stake” (PoS) as a consensus mechanism, where validator’s responsible for reaching a consensus on adding new transaction blocks to the blockchain. The network rewards validators for honest work or punishes them with penalties for bad performance. Anyone can take part in this consensus mechanism, all you have to do is run a validator (or ask to run it staking-as-a-service provider like P2P.org) and deposit 32 ETH to a special smart-contract to activate your validator. This act is called staking.

No, if you work with P2P, providing solely non-custodial services, you do not need to go through KYC because your assets do not get to our account and are sent directly to the Ethereum network.

You don’t need any Ethereum to run a node. However, you need to stake 32 ETH x [amount of validators] to activate validators and start getting rewards.

Withdrawal address is your Ethereum address for unstake and receiving rewards. This address is 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. So you must keep access to the private key for this withdrawal address to unstake (seed phrase). Important that P2P is not a custodian and has no exposure to the client’s withdrawal private key. P2P will never ask you, under any circumstance, at any time for the revelation of your withdrawal key.

Validator key is a private key for maintaining the validator’s work (setting up validators, updating software etc.). P2P owns the validator keys and guarantees the highest standards for protecting these keys from being compromised, breached, or otherwise misused. This is accomplished through Threshold signatures, which are the gold standard for internal/external security threats. This solution is used by leading custodians, crypto banks, and Multi-Party Computation solutions.

Yes, you can stake ETH with Ledger (via native connection) or Trezor (via metamask).

Ethereum rewards are comprised of 2 parts associated with performing validation duties and block creation.

1. Validation rewards are taken by performing such validator’s duties as an attestation for a block created by another validator, attestation for a block in sync committee, creating a block. Validation rewards are accrued every 6.4 min and account for ±70% of the total rewards. Rewards are withdrawable in the next ways:

   1. Full withdrawal all your deposit + rewards and deactivating validator

   2. Partial withdrawal when all ETH over 32 will be moved to the withdrawal address periodically

2. Block rewards (priority transaction fees + an additional fee from MEV) are accrued with block creation as a payment from transactions to the validator for including them in the block. It appears once per 62 days on average and accounts for ±40% of the total rewards. (note, that MEV-boost isn’t a separate type of reward but is a technique to build a block that will yield a maximum fee). Transaction fees accumulate on fee divider p2p smart-contract, then rewards are automatically delivered to the client monthly after the P2P service fee has been taken.

No, your ETH is locked in the Ethereum smart-contract.

P2P takes its service fee from the execution layer rewards. By default a special immutable smart contract is used to automatically split rewards between user and P2P by previously agreed rules. Other invoicing strategies can be employed by prior agreement.

The ustaking time is projected to be 2-3 days depending on the number of validators wanted to exit and this process consists of four steps:

1. You should authorize with your withrawal address on the unstaking page and click unstake button.

2. P2P sends validator voluntary exit message to Ethereum network, and your validators get into the exit queue. Validator stops participation in block attestation and creation (and stops getting rewards and penalties). The exit takes 16-24h.

3. After exit validator waits 27 hours because the network wants to ensure you haven't been slashed.

4. Finally, you get into the second queue (the last one!). This time validator is totally deleted from the network and returns its ETH with consensus layer rewards. It takes 16-24h.