Solana Staking Madness

    Introduction

    Solana is a distributed ledger platform built for the purpose of running large-scale applications without a central server. In comparison to other blockchains like Ethereum, Solana is able to process a higher volume of transactions per second at a lower cost to users. In order to reach consensus, Solana employs a proof-of-history protocol. For the purpose of this algorithm, time stamps are used to determine the contents of the following block in Solana's chain. A proof-of-work algorithm is used by the majority of early cryptocurrencies, including Bitcoin and Litecoin, to define the blocks in their chains.

    Locking crypto tokens in a smart contract to earn more tokens is DeFi staking. Consider it a decentralized fixed deposit.

    Solana employs Proof-of-Stake (often abbreviated to PoS). Every validator on the network can vote for which blocks to add to the blockchain, verifying any legitimate transactions in those blocks. Validators' votes aren't weighted evenly. The more stake a validator has, the greater influence he or she has on the consensus vote. Validators with less stake have less influence on the vote outcome, while those with no stake can't affect a consensus vote [1].

    A SOL token holder assigns some or all of their tokens to a validator or validators to boost their voting weight. "Delegating" tokens means adding them to a validator's stake-weight. Delegating tokens to a validator doesn't grant them ownership or control. You always control delegated staked tokens.

    By staking tokens with a validator, the token holder shows trust in the validator. As validators amass more stake from token holders, this "proves" to the network that their consensus votes are trustworthy, and their votes are weighted proportionally to their stake. Proof of Stake reaches consensus by evaluating all validators' votes against their stake percentage [2].

    Method

    This dashboard examines the recent patterns of staking Solana's pools in light of FTX's demise.

    In order to this, I mainly used Flipside’s new staking pool table include solana.core.fact_stake_pool_actions.

    The stake pool actions table has a variety of action kinds in the action column. Therefore, I will refer to any operation involving a deposit or stake as a "Stake" action. all activities associated with a withdrawal are referred to as "UnStake" activities. A user can unstake their deposited SOL via the action order unstake, which of course has no volume. as well as a second operation called "claim", which is associated with collecting staked prizes. This dashboard only takes into account Successfull transactions during the second week of November, 2022, which begins on "2022-11-06" and ends on "2022-11-14." After analyzing staking pools and patterns, I plan to research bridging and swapping From/To Stablecoins activities on the Solana network during this time period.

    Analysis

    :hourglass_flowing_sand: Stake/UnStake Activities

    ✍🏻 Conclusion

    As of Findings above:

    • After November 7, there is a massive uptick in Unstakes, Order Unstake actions, and overall activity. What this means is that, starting on November 7th, Stakers have began to remove their SOL from the ground.
    • However, the increase in stake volume is meaningless and slow.
    • In total, $468.2M was exchanged from stablecoins to other assets, while $465.9M was exchanged into stablecoins.
    • As can be seen in the figures above, the volume of bridging stablecoins from Solana to other chains is bigger than the opposite side, even though the number of transactions and Bridgers involved in bridging from other chains to Solana was higher.
    • As shown in the chart on the right, the volume of bridged USDC from Ethereum to Solana is greater than that of any other stablecoin. This is in contrast to the situation with BUSD and USDT, which have lower volumes when crossing from Solana to the BSC chain.

    And finally, I’m glad to share this research with those who care about this issue via Twitter link, and will be pleased by your comments.

    About:

    Add Text Here

    How has staking pool behavior on Solana responded to recent events?

    Analyze Flipside's new staking pools data to analyze staking behavior in the Solana ecosystem over the past week. How are stakers responding to recent events? Have there been any notable inflows or outflows to staking pools? What staking pools have seen the most notable behavior? Can you link any staking behavior to other defi activity or other accounts on Solana?

    Note any trends or outliers you see.

    Hey there 👋!

    Firstly, I appreciate you sticking with it until the conclusion.

    I'm Hamed, a civil engineering Ph.D.

    student interested in data analysis.

    I've made many similar dashboards and visualizations since I started at Flipside in January.

    Please take a look at my various contact details and let me know what you think.

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    :mag_right: Findings:

    We can witness significantly growing activity of all types of actions throughout the course of the past week in the aforementioned charts. According to pools, the maximum activity levels were reached on November 9 and 10, along with the highest number of actions.

    Additionally, we can observe a substantial increase in Unstakes, Order_Unstake activities, and volume after November 7. This indicates that Stakers have begun to unstake their SOL since November 7.

    On the other hand, we can observe that the rise of the stake volume is meaningless and sluggish.

    :hourglass_flowing_sand: Swapping From/To Stablecoins

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    :hourglass_flowing_sand: Bridging Stablecoins From/To Solana Chain

    :mag_right: Findings:

    In this sections I deals to Swapping From/To stablecoins behavior on Solana.

    As of charts right, can be seen swapped volume from/to stablecoins peaked on Nov 9th, in both directions.

    There are no significant changed BUSD volume from/to other coins.

    In contrast, swapping from/to USDC has the most adoption, so that in Nov 9th, $122.75M swapped to other coins against to $13.7M swapped to USDC from other coins.

    The volume of swaps from/to stablecoins decreased in the days after Nov 9th.

    Totally, $468.2M swapped from Stablecoins to other assets against to $465.9M swaps to stablecooins from other assets.

    :mag_right: Findings:

    Bridging stablecoins from/to Solana chain has been assessed in this section.

    As of charts right its observable that in Nov 9th the bridging transactions count and number of Bridgers reached at the highest point.

    The number of Bridgers and bridge transactions count to Solana chain are significantly more than to other chains.

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    :mag_right: Findings:

    Although, transactions & Bridgers count for bridging from other chains to Solana was more, but as of above charts the volume of bridging stablecoins from Solana to other chains is greater than other side.

    So that, the volume bridging to Solana is $1.23B, while bridging from Solana to other chains is $3.56B.

    As of following charts, bridged volume of BUSD & USDT from Solana to BSC chain is greater than other stablecoins, while in the other side, as of chart below right, the volume of bridged USDC from Ethereum to Solana is more than others.