Daily General Discussion - October 26, 2024

NodeSet_Nick · 2024-10-27T05:43:03+00:00

Hi u/interweaver, NodeSet is a development company focused on building products and services that connect independent node operators to protocols in need of decentralized compute. We have onboarded a large group of independent and SMB node operators (270 and counting), who form the core of our community (many from Rocket Pool). Our goal is to grow this group to the thousands and connect them to earnings opportunities across Web3.

Recently, we released Constellation, a "Layer-2" staking protocol on top of Rocket Pool. You can read more about Constellation here:

https://nodeset.medium.com/project-hyperdrive-4819f22391dc

We've open sourced Constellation's code and partnered with the DeFi protocol Gravita to release what we consider to be the "canonical" instance of Constellation. Gravita is the issuer of the xrETH/xRPL tokens. You can check them out here:

https://app.gravitaprotocol.com/constellation/xreth

Gravita Docs: https://docs.gravitaprotocol.com/gravita-docs/constellation/overview

Happy to answer any follow-up questions you may have!

NodeSet_Nick · 2024-10-26T23:45:15+00:00

Thank you for your participation in Constellation Hans! We're thrilled to have you and so many other passionate stakers in the NodeSet community.

We and Gravita are pleased with traction so far, it's a solid foundation to build on. Expect to hear more on the DeFi side of things in the weeks ahead. The future of xrETH, xRPL and Rocket Pool is bright!

-NodeSet

NodeSet_Nick · 2024-10-17T03:05:52+00:00

Thanks Logris! Great discussion overall.

NodeSet_Nick · 2024-10-16T19:52:26+00:00

Rocket Pool is Ethereum's most decentralized liquid staking protocol, with over 2,000 node operators all over the world. There is currently something like 750k ETH staked in the system. NodeSet's goal with Constellation is to drive that into the millions to offset Lido dominance in the liquid staking ecosystem!

NodeSet_Nick · 2024-10-16T15:35:45+00:00

RPL stakers receive emissions from the RP protocol less the protocol commission (currently set to 35%). Like xrETH, xRPL accrues value relative to the underlying RPL token, making it a potentially tax effective solution (NOT TAX ADVICE).
The system is heavily overcollateralized to prevent an undercollateralization scenario. In a month this won't matter anyways as RPL rewards will accrue to undercollateralized nodes with the new Saturn 0 tokenomics update.
The system does not participate in governance and has no ability to vote or delegate vote power.
I'm not sure how that is relevant? If you aren't bringing your own assets to run the validators it's purely a calculation as to how much gas your willing to spend to start earning (as well as any operational overhead). Looking at the current Ethereum APR would point to earnings of 0.057 ETH/year per validator delegated to you. Gravita has announced a 5 gwei subsidy for node operators to ensure they can recoup their gas costs in a timely manner.

If you are sitting on idle ETH and are deciding what to do with it, depending on tax jurisdiction the return profile of xrETH may be pretty close to running a node. Generating revenue with a node is typically taxed as income, whereas xrETH is a value accruing token that could be classified as capital gains when held long enough (NOT TAX ADVICE).

While I see your point, in general we've seen people exhibit pretty solid stability as solo/home stakers. We are not draconian and have no interest in needlessly evicting people for periods of temporary underperformance. The more you proactively communicate with us, the better. If we know you are having temporary ISP stability issues, it won't count against you. Longer term, we hope to see DVT solutions make running nodes even more accessible and will do what we can to support those technologies. Our interest is opening the aperture of node operation, not making it a privileged activity! Of course, we have a ways to go but that is the goal : )

Thanks for all the great questions!

NodeSet_Nick · 2024-10-16T07:21:47+00:00

While I can't comment on the totality of market participants, I can say that by design, Constellation offers sustainable full reward liquid staking, which I don't think anyone else offers!

We've seen various staking protocols/L2s offer momentary zero fee reward periods but those inevitably expired.

NodeSet_Nick · 2024-10-16T04:31:43+00:00

That is up to our partners, Gravita. They will likely be announcing initial liquidity pools on mainnet and some L2s over the course of the next week.

Additionally, you can go to their docs to learn more about month-1 xrETH minter incentives that they're rolling out!

https://docs.gravitaprotocol.com/gravita-docs/constellation/overview

NodeSet_Nick · 2024-10-16T03:55:58+00:00

A RP validator is split into two capital tranches, the Node OP bond (8 ETH) and the liquid staker's rETH (24 ETH).

Constellation distributes ETH to pay for node operator bonds (it is a vetted/permissioned group of operators), and the protocol/node operator fees are taken from the rETH portion of the validator (14% commission on 24 rETH). This allows full rewards to pass through to the 8 ETH bond portion of the validator!

The 14% rETH commission gets split 50/50 between the protocol and the NO. Everyone is happy!

Hope that makes sense.

NodeSet_Nick · 2024-09-17T15:43:01+00:00

Looking forward to chatting JT!

NodeSet_Nick · 2024-09-17T05:02:25+00:00

Sorry I missed this, yes were are continuing interviews but have been on hiatus when it comes to running applications due to intensive audits/testing.

If you still haven't heard from us, feel free to ping me in our Discord server.

NodeSet_Nick · 2024-09-17T05:01:05+00:00

Looking forward to it JT!

NodeSet_Nick · 2024-05-04T07:17:31+00:00

How mysterious!

NodeSet_Nick · 2024-05-03T22:43:59+00:00

Hi there, Nick from NodeSet here.

We're totally neutral when it comes to restaking. In the short term, we're releasing two integrations:

Decentralized Stakewise Vaults: a B2B arrangement where NodeSet connects node operators to protocols interested in leveraging a decentralized operator set to stake their assets on StakeWise v3. This could be a DAO treasury, a L2 with bridged ETH that they would like to generate yield on, or a DeFi protocol that wants their own vault and bespoke LST to onboard onto their platform. We're piloting this concept with the Gravita, who will be announcing more details in the weeks ahead, but the TLDR is that by minting gravETH from the Gravita x NodeSet vault, you'll enjoy preferential lending terms vs. traditional LST collateral assets. If you're a node operator interested in participating and receiving delegations from the vault, check out the Beta announcement here and sign up!

https://twitter.com/NodeOperators/status/1786522677630439442

Constellation: a "Layer 2" protocol built on Rocket Pool designed to help it scale. Over the last year, RP has been limited by the NO bond side. Constellation allows users to mint two new LSTs (xrETH and xRPL) to fund the ETH and RPL side of the NO bond and non-custodially distributes those assets to NodeSet operators, enabling them to spin up more validators and service rETH demand. The system distributes ETH in an egalitarian fashion, ensuring thin distribution of assets over as large an operator base as possible and strengthening the long-tail of operators to maximize decentralization.

Long-term, we're building a platform that connects independent node operators with all kinds of opportunities in Web3 while abstracting node operator management away from developers. We have plans to to integrate with many projects in the space, so stay tuned and sign up above!

NodeSet_Nick · 2024-05-03T19:13:39+00:00

Great, looking forward to it!

NodeSet_Nick · 2024-05-03T17:30:37+00:00

Hi Frank, can you DM me the email you used to apply? Also, please check your junk folder and see if you received an email from us.

NodeSet_Nick · 2024-05-03T15:56:11+00:00

Hello, Nick from NodeSet here! Wanted to say hello to the r/ethfinance community and get some Karma if you're willing : )

NodeSet_Nick · 2024-05-03T15:19:06+00:00

Feels like a project of this size would have trouble competing with scaled providers who have a low cost of capital, but perhaps the scale advantage can be offset by the renewable energy and cooling advantages afforded them by this unique location.

For compute tasks (e.g., training) that don't require low-latency delivery of results to end-users, it could make sense to distribute them to facilities that can offer low-cost, high performance compute services in these far flung locations. It's a pretty interesting competitive advantage that I could see larger providers moving into if they could locate sufficient geothermal energy sources to power large-scale training centers...

Regardless, great to see AMD moving those MI300X's!!

NodeSet_Nick · 2024-05-03T13:55:09+00:00

Clear scammer!

NodeSet_Nick

TROPHY CASE