Some interesting observations/analysis for Pool Operators and ADA Stakers

I have been using https://pooltool.io/ to determine where to stake. It has been interesting to see how Stakers are moving around the Stakepools. Also, I noticed some challenges for Pool Operators. These are some of my observations:

  1. For a majority of Pool Operator to regularly win the right to create blocks or it seems are able to create blocks, they must have greater than 2 million ADA staked in the Pool. I found this by doing a sort on the ‘Lifetime Blocks’ column and then looking at the ‘Live Stake’ and ‘Epoch Block’ columns.

  2. When sorted by ‘Current ROI’, shows that the highest ROI does not imply that rewards are also the highest. See the ‘Lifetime Rewards’ column.
    Also although the ROI seem amazingly high compared to other Financial products (eg Shares, Property, Bank Interest rates), the key information here for the Staker is whether the Pool is producing a maximum possible Epoch Blocks in order to maximise Actual ADA rewards. But one also needs to be BEWARE that some of the Pool Operators have exhorbitant multiple fees (Fixed, Variable and Max Fees) as shown in their respective columns.

  3. A possible contention worth discussing is - given that for the hundred or so of Pools that are generating more than 8% ROI (after all fees), for the Investor, such a high return means that even if the Pool is saturated, this may still be very profitable. This is mostly true because the saturated Pools seem to have regularly higher Epoch Block creation thus guarantee higher Rewards.

  4. Another contentious proposition is - Given the current Staking trends, it appears highly probable that a major consolidation of the Stake Pools must occur. And the sooner the Pools that have less than 2million ADA do so the better for them, if they are to become profitable and survive the competition.

  5. It is not clear that equity in winning the opportunity create an Epoch Block for all Pool operators is occuring. This can be seen by sorting using the Epoch Blocks and the Lifetime blocks. My suggestion is perhaps for the creators of the website: https://pooltool.io/ should create a new column Pool StartDate. This will then enable a more accurate analysis of the equity of opportunity given that newer Operators may take some time to gain Stakers. At the moment, it is a presumption, but may not be true.

Look forward to your feedback

Stevod

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