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Pawel Pokrywka
@pawelpokrywka
From what I understand, one of the things that differentiates solo stakers from professionals is the attestation rate. It is lower in general. This results in lower attestation rewards and may discourage solo staking. How to prevent that from happening?
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Pawel Pokrywka
@pawelpokrywka
Here is an idea: What if Ethereum attestation rewards were capped at a certain level, allowing a certain percentage of missed attestations without impacting profits? This way most solo stakers would receive the same rewards that professionals. What do you think? @superphiz.eth @nixo @sassal.eth
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nixo
@nixo
love the brainstorming! i think the main sources of disparity are a few things: 1. execution rewards (pools = less variance) 2. economies of scale (thousands of validators on one node vs one on one) 3. more robust hardware / operators able to opt into external yield (e.g. eigenlayer) consensus rewards like attestation don't play a huge role in that disparity, though you're right, there's still some difference from the way that solo stakers have poorer effectiveness on average. i think it's important that we keep incentivizing good performance but just give solo stakers more ways to perform better (DVT?) i think brainstorming like you're doing is gonna be critical to implementing some solution that maintains solo stakers as a valuable and rewarded participant on the network - it's definitely going to be a combination of factors
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Pawel Pokrywka
@pawelpokrywka
Thank you for detailed reply. The things you mentioned are probably more important, maybe my idea is just microoptimization. I may be wrong, but at least from technological standpoint I believe it may be fairly easy to implement. A moment ago I compared first non-exited validator from Rated Network list with example Lido validator and I can see Lido is about 8% more efficient at attestations. Given attestations are much more common that block proposals and MEV, allowing validators to miss certain amount of attestations per epoch without impact on rewards would nicely improve solo stakers profits. Of course this is anecdotal evidence. If someone has good data on differences between consensus-layer (preferable attestation-only) profits of solo stakers vs pros, I would be grateful for sharing that. Here are the screenshots from beaconcha.in showing profit differences. I used custom time interval to focus on stable, attestation-only income.
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Thomas
@aviationdoctor.eth
Careful not to compare the reported effectiveness between Rated.network and Beaconcha.in, as I understand they are calculated differently. Missed attestations should not measurably be worse for solo stakers, but what might happen is slightly worse latency leading to lower Gwei rewards even for valid attestations. This is not due to the staking setup but rather to the network conditions of home staking (which can be anywhere in the world, sometimes with suboptimal ISP connectivity). On the other hand large operators like the 37 or so Lido operators will typically operate from data centers with excellent connectivity and low latency, so their reward per attestation is maximized
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