As you all know Magento is notoriously slow. We have tried several caching systems and found Varnish to be the best so far.
Using the Turpentine extension by Nexcess setting it up becomes reasonably straightforward!
You can get the extension here: https://github.com/nexcess/magento-turpentine
Using Varnish all your pages will be fully cached. Turpentine uses a smart hole punching ESI block system to make sure all dynamic blocks are also loaded properly.
When using Varnish + Turpentine for your Magento store, your load times will probably go down to about 0.03 seconds or so.
If you need any help with the implementation, don’t hesitate to let us know!