Solana Staking Madness

    Question in detail:

    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?

    Overview of analysis:

    This analysis contains 5 parts as below:

    • General stats related to decentralization of Solana
    • Over time stats for various actions
    • How users behave with Solana decentralization?
    • Investigation on Staking pools
    • Trading activity in the selected time period for SOL, Stable coins, FTX and Serum

    Methodology:

    The data provided by Flipside has been used to handle this analysis.

    • Used table:

      solana.core.fact_stake_pool_actions provided by Flipside has been utilized to handle this analysis

    • Various actions:

      • Stake→ action ilike '%deposit%'
      • Unstake→ action ilike '%withdraw%'
      • Claim→ action ilike '%claim%'
    • Used Metrics:

      • Users, transactions and volume of $SOL for each action
      • Cumulative, average and 7-day moving average amount for each action overtime
      • Participation of each staking pool on actions
      • Delegator distribution by count of action and volume of $SOL used for each action

    This analysis has been studied for the time period of past 2 weeks (since November 1st)

    Solana blockchain and its decentralization:

    Solana is an open-source, public blockchain that supports smart contracts, peer-to-peer tokens (NFTs), and a wide range of decentralized applications. Coin is a native of the Solana SOL network, which, in addition to the role of exchanges, is also used to secure the network through staking or depositing. Solana network has the ability to process 50 to 65 thousand transactions per second. For this reason, it considers itself a serious competitor for Ethereum.

    The core of Solana's scalability solution is the use of a decentralized time clock called Proof of History (PoH). This technology is presented in order to solve the problem of time in distributed networks where there is no centralized and trusted entity. Proof of history using Verifiable Delay Functions allows each node in the network to generate timestamps locally using SHA256 hash calculations. This eliminates the need to broadcast timestamps in the network and thus improves the overall performance of the network.


    The Solana network is a proof-of-stake network. Validators in this network process transactions and manage the network. Validators are selected based on their staking value, and the larger the value, the more likely they are to enter transactions into the blockchain.

    In return, they receive rewards in the form of SOL tokens. For this reason, validators encourage others to entrust their tokens to them, and in the meantime, validators take a commission and give the rest of the reward to the people who own the token.

    Part 1: General stats

    Part 2: Time base analysis

    Findings:

    This part contains the general numbers related to each action since November 1st:

    • According to the analysis, the -1.49 million SOL is the net staked amount means that users unstake more more than stake action.
    • The number of distinct users for stake action is more then other actions.
    • The average SOL amount per day for unstake is more than 171k in the selected time frame.
    • Users intended to unstake their SOL due to the recent awkward events on crypto universe.

    Part 3: How users interacted with Solana Decentralization

    Findings:

    Now lets see how decentralization of Solana changed since November 1st:

    • The highest volume of unstake in the selected period occurred on November 10 with over 932k SOL and its the considerable spike.
    • The net stake chart reveals the decreasing trend and reached its lowest level on November 10.
    • The 7-day moving average amount of staked SOL decreased over time but for unstake action this parameter has been followed the rising trend.

    Findings:

    In this part we want to know how users interacted with Solana decentralization since November 1st and how they respond to these events:

    • The distribution of users by count of transaction for each action demonstrated that for Unstake action there are more users with over 5 transactions rather then other actions.
    • About 75% of transactions related to the unstake SOL with amount higher than 10 SOL and its the dominated bucket. but for stake action it can be seen that users have been distributed in balance by amount of SOL compared to other actions.
    • The top delegator with highest amount of net staked SOL has been delegated about 1874 SOL since November 1st.

    Part 4: Analysis related to Staking pools

    Findings:

    In this part lets concentrated on the staking pools and find out the how decentralization changed since November 1st:

    • From the share of transactions for different actions on staking pools, it can be seen that the Daopool has the highest share related to unstake action and the Marinade staking pool has reward claim action in the selected time period.
    • From the users and volume of SOL, it can be seen that the domination belong to Lido staking pool with over 2.13 million SOL for stake action and its considerably high.
    • The average amount of SOL for staking pools shown that the highest average volume of unstake belong to Lido.

    Part 5: Trading activity of SOL, Stabelcoins, FTX and Serum

    Findings:

    Dive deeper into the staking pools and find out how users interacted with them since November 1st:

    • For this purpose, the actions have been divided into the stake and unstake actions and each action has been investigated individually by different staking pools.
    • From the stake point of view, the Marinade and Lido have the highest share from transaction, users and volume of SOL aspects.
    • For unstake action it can be seen that the domination belong to Lido staking pool since November 1st and the highest volume of unstake happened on Nobember 10 by 311 unique users.
    • The net staked SOL amount on various staking pools reveals that on November 10 the highest unstake occurred and the net amount of stake for Lido was -889.5k SOL and in the second rank Daopool stands with -22.2 k SOL as net staked volume.

    Findings:

    Finally in this part, the trade analysis of various currencies has been done and try to figure out the interdependency between these trading activities and decentralization actions.

    • First of all the trading activity of stable coins (USDC and USDT) have been determined. As can be seen, on November 9 the highest volume of swap to stable coins occurred with over 169 million USD.
    • Also, on November 9 users swap their SOL into other currencies more than swap to SOL and wants to avoid extra loss on SOL price drop.
    • Now lets investigate the trading activity of FTX and Serum which received early backing from FTX. On November 13 people swap their Serum tokens into other coins.
    • On November 8 people swap the FTX to another tokens with over 19.2k FTX tokens.
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    Conclusion:

    • The recent events related to the FTX or Alameda group has been affected the Solana decentralization more than usual as can be seen.
    • Users unstake their SOL from Solana staking pools with remarkable numbers since November 1st.
    • The Lido staking pool has the highest volume of unstaked SOL among staking pools.
    • Coincided with these actions, the trading activity of various currencies shown that users swap their SOL and FTX tokens into the stable coins specially on November 9.

    Author:

    Credited by MZG

    Discord handle: m.zamani#0361

    Twitter handle: @GargariZamani

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    Recent events related to the FTX and Alameda research:

    FTX exchange was originally developed by Alameda Research, a trading company founded in 2017. The company manages $100 million worth of digital assets and is one of the top market makers for BitMEX, OKEx and other derivatives exchanges. Alameda Research was founded by Sam Bankman-Fried, a former professional trader at Jane Street Capital's international ETF fund, and Gary Wang, a former developer at Google. Mr. Wang and Mr. Benkman formed a highly professional team of crypto and cryptocurrency trading experts who helped them build the FTX platform.


    It looks like it's been a rough year for billion-dollar cryptocurrency companies, as Sam Benkman-Fried (SBF) FTX is now in the headlines, with crypto brokers scrutinizing its data for signs. are from bankruptcy.

    The issue started a week ago when several researchers began looking deeper into SBF's finances, specifically its trading company Alameda Research, to determine that there was a funding risk due to the overrepresentation of the FTT token on its balance sheet.

    The crypto community is braced for the FTX crisis. Up until this point, most of the bearish crypto market was the result of macroeconomic conditions. Coinbase research noted that two-thirds of the selloff in the market is a direct result of the difficult macroeconomic outlook. As the general market fluctuates from news of inflation and recession, so does the crypto market.

    However, the current sale is a direct result of the actions of FTX and Sam Bankman-Fried.