Try Quests to earn crypto$MATIC Staking
An exploration of matic staking in the polygon staking ecosystem
Introduction
Decentralized applications are developing rapidly, but the current blockchain ecosystem is not ready for the demands. Before we reach mainstream adoption, we need to solve problems like slow transaction confirmation and high fees. Above all, we need a good user experience here.
Matic aims to facilitate interaction between users and the centralized world. This network wants to make interacting with the decentralized world easy enough that anyone can do it without worrying about the complexity of the system. The staking system of this digital currency is very attractive and has gained many fans.
Matic staking prerequisites
There is no minimum amount to become an delegator on this network. This is despite the fact that there is a minimum in the network of some other digital currencies, and less than that cannot be used in the staking process. Any amount, even one token, is accepted in this system. Of course, it is up to the validators to set a threshold for accepting the delegator or not. Validators may charge a fee in exchange for their node services. It is up to the delegators to research validators, and delegators should compare the fees of different validators and, in addition, check the status of their nodes and whether they are working properly.
How to participate in matic Staking
First, it is necessary to get acquainted with the concept of delegation in this network. Delegators are token holders who don't want or can't set up a validating node themselves. They can hand over the staking tokens to a validator and in this way take part of the revenue. In effect, these Delegators share revenue and risk with validators. Delegators play an essential role in this system because they are the ones who determine the validators.
Among the readers of this dashboard, those who are interested in staking matic can refer to this link.
According to the site whose link was posted above, the number of matic staking validators is 116 nodes, of which 100 validators operate in the mainnet and 16 validators operate in the testnet.
By referring to this link, you can learn how to calculate Stakingmatic rewards: https://www.stakingrewards.com/earn/matic-network
The purpose of creating this dashboard
In this dashboard, we are going to calculate the amount of staked Matic token from the beginning of July 2022 and also see what the staking ratio of this token was and check the daily trends related to staking and unsticking of this token from the beginning of July 2022.
Methodology
In this dashboard, we will examine the process of staking and unstaking in 2 opposite columns, in other words, the right column is related to the matic unstaking process and the left column is related to matic token staking,From the beginning of July 2022.
These reviews include the total amount of matic staked and Unstaked and the ratio of staking and Unstaking as well as unique stakers and Unstakers as well as the top 10 stakers and top 10 Unstakers and visualizations about the amount of stake and unstake for each unique users and highest user and We will do the average and the lowest amount of the daily stick, as well as research about the relationship between the stick and unstick matic with the price of the matic token, and at the end of the dashboard, we will connect these two columns to get the daily net amount and the total stick.
And we will do the maximum, average and minimum amount of the daily stake and unstake, as well as research about the Correlation between the stake and unstake matic with the price of the matic token, and at the end of the dashboard, we will connect these two columns to get the daily net stake and the total net stake From the beginning of July 2022.
We used the ethereum.core.fact_event_logs table to call the data related to the stake and unstake columns. For this, we used three factors: ORIGIN_FUNCTION_SIGNATURE, CONTRACT_NAME, and EVENT_NAME.
To call the stake related data, we set the ORIGIN_FUNCTION_SIGNATURE value equal to 0x6ab15071, the CONTRACT_NAME value equal to StakingInfo, and the EVENT_NAME value equal to ShareMinted.
And to call the data related to the stake, we set the value of ORIGIN_FUNCTION_SIGNATURE equal to 0xc83ec04d and the value of CONTRACT_NAME equal to EventsHubProxy and the value of EVENT_NAME equal to ShareBurnedWithId.
We used EVENT_INPUTS:amount/1e18 to call the data related to the stake value and EVENT_INPUTS:user to call the users.
We also used the ethereum.core.fact_hourly_token_prices table to determine the price of the matic token.
This dashboard was created on September 22, 2022, and all its information, statistics, and visualizations are related to this date.
data analysis
According to the above graphs, the upward trend in the amount of staking and the downward trend in the amount of unstaking can be seen from the beginning of July.
In the process of staking, a medium jump can be seen on August 15 and two big jumps on August 25-30. It seems that the increase in the amount of staking in August is related to the news that 1.4 billion tokens were released from the vesting contract, in this release 200 million Matic tokens is dedicated to the reward of stakers and it can be said that the freed tokens went towards staking because it did not have much impact on the price of Matic tokens.
In this regard, it is not a bad idea to take a look at the tweet of Sam Martin, the author and researcher of the Blockworks website, and Sandeep Nailwal, the founder of Paligan, to quickly respond to this tweet to avoid creating fear in the market.
According to Unstake's chart, the largest withdrawal amount of this token was in July, and the peak of withdrawal can be seen on July 9, during this day, about 40 million Matic tokens, equivalent to approximately 24 million dollars, were Unstaked.
It seems that the withdrawal in July was related to the increase in the price of the Matic token. In this month, factors such as Polygon's selection for the Disney accelerator program helped to increase the growth rate of this cryptocurrency.
According to the graphs above, since the beginning of July, 737M Matic Token equivalent to $583M have been deposited by the Delegators of the staking process.
Since the beginning of July, 184M Matic tokens equivalent to $143 M have been withdrawn in the unstaking process.
According to the above statistics, it can be said that the amount of matic staking is about 4 times the amount of Unstaking of this token.
data analysis
The scatter plot of matic stakers shows the density of more stakers. This graph shows us that the number of stakers is more than the number of unstakers, and as we can see, this number is 2770 against 1458.
As we can see, the top matic staker has staked 190 million of the matic token since the beginning of July, and on the other hand, the top matic token harvester has unstaked almost 45 million of this token, that is, the top staker has staked more than 4 times.
The number of matic Token stakers is almost twice the number of Unstakers.
data analysis
The first thing that can be said is that the maximum amount of Unstaked per unique user is about $1.5M, and in the process of staking, the maximum amount of staked per unique user is about $6M, which is about 4 times.
The noteworthy point in the staking process is that the further we go from the beginning of July, a kind of risk tolerance and trust is observed in the depositor user, which means that for example on July 11, 44 users staked about $450K of Matic token each. For example, on August 30, as we can see, 26 users have deposited about $6M each.
Regarding the correlation between the behavior of the delegators and the price of Matic, it can be said that this correlation can be seen noticeably in the withdrawal process, as we can see, for example, on August 1, when the price of Matic went from below 50 cents to above 90 cents, the withdrawal of each user reached about $800K. The situation can also be seen on August 15.
On the other hand, in the staking process, this correlation seems negative, for example, on August 30, when the price fell from above 1 dollar to around 80 cents, we see the largest amount of deposits.
And in general, since the beginning of July, each depositing user has staked $216K of matic Token and each withdrawing user has Unstaked about $77K.
data analysis
The ratio of the daily average amount of staking to the average daily amount of unstaking is 4.09.
The ratio of daily maximum amount of staking to the maximum amount of unstaking is 6.5.
The ratio of daily minimum amount of staking to the minimum amount of unstaking is 29.1
As we can see, the average deposit amount of Matic token is about 4 times compared to the withdrawal amount of this token.
data analysis
The Maximum daily net steak was on August 25 and 30 and On July 9, we see the Maximum negative net Staking.
It seems that the amount of daily negative staking on July 9 and August 1 can be related to the behavior of some users whose strategy is to withdraw when the price increases.
And the same analysis can be extended for Matic Token stickers, as we can see that on August 25 and 30, the price of Matic dropped from over $1 to about 80 cents.
In general, since the beginning of July, more than 550 million Matic tokens, which is equivalent to approximately 440 million dollars, have been locked in the Matic network.
It is important to note that the values obtained in the above graphs are regardless of the amount of reward tokens re-staked by users, and it should be noted that some users re-stake their rewards tokens.
Conclusion
The results that can be obtained from this dashboard can be expressed as follows:
since the beginning of July, the staking trend of Matic has been increasing and the unstaking trend of this token has had a decreasing trend, considering the events of July such as the acceptance of the Disney Accelerator and the increase in the price of Matic. observed the increase of Unstake matic, and the increase of matic staking since the beginning of August is significant due to the release of 1.4 billion matics, the number of users of staking matic is also more than the number of withdrawers, and as we have seen, net staking was around $500M.
One of the significant points in this dashboard is the increase in risk tolerance of users in the Polygon network validation ecosystem, as we have seen, the amount of stake per user has been increasing over time.
Another noteworthy point can be considered the behavior of the delegators towards the price of matic. It seems that when the price increases, some users prefer to unstake their tokens, and when the price decreases, they prefer to deposit their tokens.
In the end, it should be said that depositing about $500M in 1.5 months in Polygon staking ecosystem shows the strength and attractiveness of this process in the eyes of users, and this amount of deposit can be a sign of high trust in this process by delegators.