Institutional Ethereum Staking with P2P.org

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.

• 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. Currently, these rewards aren’t withdrawable, but after the Shanghai update it would be possible to do:
  • Full withdrawal all your deposit + rewards and deactivating validator
  • Partial withdrawal when all ETH over 32 will be moved to the withdrawal address periodically
• 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.org 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.org by previously agreed rules. Other invoicing strategies can be employed by prior agreement.

Unstaking will be available after Shanghai upgrade, which is planed for March 2023. 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:

• There will be unstaking page, where you should autorize with your withrawal address and click unstake button.
• 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, but right after Shanghai, this queue may be much longer.
• After exit validator waits 27 hours because the network wants to ensure you haven't been slashed.
  
• 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.

Slashing punishes for actions that are very difficult to do accidentally, and it’s very likely a sign of malicious intent. It’s a really rare event: only 5 slashed validators within the whole network for the last month (or 0.001%). https://beaconcha.in/validators/slashings

‍What is “slashable” behavior? In a nutshell, it’s a violation of consensus rules in network. Now it’s a three conditions: proposal two conflicting blocks at the same time, double vote attestation and surround attestaton. It could be either a malicious specific action or misconfiguration (the most often it’s running two the same validators in network).

Slashing results in burning 1,0 ETH at once, and removing the validator from the network forever, which takes 36 days. During this time, the validator continues to work but can no longer participate in validation and block creation, getting a penalty of around 0.1 ETH in total.

Mostly, that’s all losses, but there is also an additional midpoint (Day 18) penalty that scales with the number of slashed validators, it’s called "correlation penalty”, which is currently theoretical, i.e., never encountered in mainnet, but we should understand it. This mechanism protects the network from large attacks. The math for calculation penalty is pretty complicated, but the summary is if there are only 1, 100, or even 1000 slashed validators within 36 days - it’s okay and penalty equals zero ETH. However, if the number of slashed validators increases to roughly 1.1% of all validators (currently 5.1k), this penalty becomes 1,0 ETH. And +1,0 ETH for every +1.1% slashed validators. So if 1/3 network is slashed, the penalty will nullify the whole stake (32 ETH).

There are a special mechanism in validators for preventing slashing conditions called slashing protection.This slashing protection is usually a database with a signing history, and the validator checks if the block can be signed. - in couple with monitoring and alerting it’s a default protection level. More. Additional protection levels depend on validator’s setup. P2P uses double-check with the separate database at the key-manager stage and secures validators key’s by Threshold (no single person, even a P2P engineer, can run a second validator, a quorum is required for that). And finally, institutional grade protection is slashing insurance, that seems the only way to be 100% protected.

If you stake with P2P.org you get your personal staking dashboard for tracking rewards and validator's performance (APR, staking balance, % of blocks created with MEV, attestation rate, missed block, comparison with the market etc.).

P2P.org direct staking infrastructure is located in Europe and distributed among 5 separate physical locations for protection from downtime.

P2P.org validators are downtime resistant because we have no single point of failure with back-ups of all critical infrastructure parts between 5 physical locations, including:

• Signing infrastructure - 3 location-independent key managers with 2-of-3 threshold quorum for consensus (aka multi-sig)
• Validator Node - we have reserve in a secure region ready to be activated within 1 min
• Consensus layer nodes - our setup has top-3 consensus layer clients (Lighthouse, Prysm, Teku) at the same time for diversity and preventing outrages related to soft bugs in one client. It’s also increases availability for validator.