The Importance of Staking SSV

Have a closer look at rewards when staking SSV with Goerli ETH in the incentivised Testnet.


The Importance of Staking SSV

Stake SSV for testnet

In this post, we’ll explain why, as a staker and investor, you should give serious thought to staking SSV, along with your goerli ETH, on the ssv.network Primus Testnet. In case you didn’t know, in addition to using your SSV tokens to pay operator fees, you can stake them as well! And, it soon becomes easy to understand why this is a good idea once you grasp the important role SSV token plays in staking on ssv.network, along with the maximized rewards the DAO has allocated to those that stake SSV.

By staking SSV tokens, you’ll have access to a dedicated testnet prize pool reserved exclusively for token holders. Why? The DAO recognizes that rewarding those who stake SSV with a bigger prize pool effectively prohibits GoEth whales running many validators while staking 0 SSV from obtaining a large portion of the incentivized testnet rewards.

Previous Rounds of ‘Primus’ Rewards

Now, let’s dive in and take a closer look at those rewards… The first 3 rounds of the Primus Testnet are complete, and we have some data we’d like to share with you so you can see for yourself how staking SSV will earn you maximum rewards. Because the DAO knows that staked SSV is important for the overall health of the network, it has allocated only 15% of all SSV token rewards to “All Validators” and 50% of them to “Validators (+SSV Holders)”. As you can see in the following chart, this equates to 22,400 additional tokens available to those that stake SSV!

The Importance of Staking SSV

Next, let’s take a look at actual validator reward data for three different validators over the course of all three rounds to see how this has played out so far in the “real world” (or as close as we can get on a testnet). The first column in the grid below indicates the validator #, followed by the amount of SSV the validator has staked, the total SSV earned and finally, the average APR (annual percentage rate), as calculated over the time period of those 3 rounds and then extrapolated out to one year. The duration of each round is about 14 days.

The Importance of Staking SSV
APR Rewards for staking SSV

Starting at the left with Validator 1, you can see that this user has staked 0 SSV and their total rewards for the three rounds are only 1.10 SSV. In addition to these low earnings, this validator really has no APR as the SSV it has earned was simply a calculation of the SSV amount available to the ‘validator only’ pool divided by the amount of ‘validator only’ validators on the network.

Moving over to Validator 2, with 105.8 SSV staked, you will see this one has a total reward of 5.15 SSV for the three rounds. At first you might think this is low, however, when you calculate this out using 26 days per round, it has an amazingly high average APR of 42.3%!!!

And, finally, with Validator 3 on the right, this user has staked 24,232 SSV with a total reward of a little over 1,180 SSV for all three rounds. And, just like Validator 2, this validator has the same high average APR of 42.3%!

So, it’s easy to see there are BIG differences in return based entirely on whether or not the user staked SSV along with their GoETHd on testnet. It’s also very apparent after 3 rounds of testing that earnings for SSV stakers are consistently high. Don’t be like Validator 1 with 0 staked SSV… be like Validators 2 and 3 and earn maximum SSV with an APR over 40%!

Conclusion

In summary, if you’re running a validator on Primus Testnet but didn’t stake SSV (have SSV in your wallet) when you registered it, you’re missing out on a big piece of the rewards pie. And, it’s easy to stake SSV, so why not do it? There are 2 ways:

  1. Add SSV tokens to the wallet you used to register your existing Primus Testnet validator. The amount of SSV in your wallet is measured on a ‘per round’ basis and a snapshot is taken at the end of each round. When you add SSV to your wallet in the middle of a round, it will be taken into account at the beginning of the next round and you will earn SSV at the end of that round.
  2. Create a new validator by following the step-by-step guide written by Crypto Tester, and be sure the wallet you use to sign the registration transaction contains the amount of SSV you want to stake. Or, if you’d rather watch a video than follow a written step-by-step guide, check this one out that outlines the whole process.

Happy Staking!

P.S. For those of you that choose to create a new validator and already know the general process, @Hellman has developed a tool to generate both a keystore file and a HEX, and made it as simple as it gets. Simply input your wallet address and generate the HEX, then copy that HEX and you’re ready to go! Find that helpful tool here.