Tokenized Validators

Onchain

What is Tokenized Validator?

Tokenized validators offer institutional Ethereum stakers, such as ETFs, regulated funds, and asset managers, a capital-efficient solution for participating in staking.

Using Kiln’s infrastructure, institutions can tokenize their Ethereum validators, benefiting from liquidity and flexibility without needing to fully unstake their assets.

This approach optimizes capital management while allowing participation in Ethereum's Proof-of-Stake network, making it easier for institutions to balance staking rewards with liquidity needs.

The benefits of Tokenized Validator

Maximise capital efficiency and liquidity

Institutional stakers can leverage Tokenized Validators to unlock liquidity during the unstaking and unbonding process of ETH.

Institutions can realize the value of their validator without waiting for the full exit and withdrawal process by partnering with liquidity providers, such as OTC desks, allowing institutions to access liquidity promptly while transferring the underlying validator ownership.

Dedicated validators

Staked ETH remains fully segregated from other institutions’ ETH, with the creation of a dedicated validator that the institution controls.

Institutions can implement their own compliance procedures by creating a permissioned network of participants through built-in whitelist functionalities. This ensures that only approved wallets—such as those belonging to qualified custodians, liquidity providers, and authorized participants—are able to participate in the process.

Validator agnostic

Institutions can onboard their preferred staking partner to operate validators, allowing for tailored support and services.

A diversified staking strategy with multiple providers helps mitigate dependency on a single provider, enhancing risk management and flexibility.

Comprehensive reporting

Institutions can easily collect and present detailed staking data for their tokenized validators through real-time and historical indexing of all Ethereum validator data, regardless of the validator operator.

This feature ensures comprehensive visibility and streamlined reporting across their staking activities.

REMINDER

Dedicated Validators

Kiln Dedicated Validators allows customers not only retain full ownership but also enjoy all the benefits of our onchain products, including automatic rewards’ dispatch and auditable processes through smart contracts.

Kiln Dedicated Validators is a native and non-custodial staking solution underpin by our audited smart contracts. It facilitates deposits of any multiple of 32 ETH for dedicated validators hosted and managed by Kiln or another node operator already connected to the platform.

If you prefer a more traditional approach, Kiln's standard Dedicated Validators is also available. Choose the option that suits your staking needs.

Kiln Dedicated Validators

Anatomy of Tokenized Validator

Example of metadata associated with a Tokenized Validator

Current ETH balance

Validators status

Historical performance (e.g. effectiveness, uptime, profitability)

Validator client (e.g. Prysm, Teku, Lighthouse)

Node operator (e.g. Kiln)

Hosting location (CH, FR, UK)

Current ETH Hosting provider (e.g. AWS, Azure, OVH)

Back to Kiln Dedicated Validators

Unsure which staking products suits you best?

Kiln Dedicated Validators

Staking by batches of 32 ETH without issuing a receipt token

Kiln Tokenized Validators

Staking by batches of 32 ETH with a non fungible token

Kiln Staking Pool

Staking for any amount of ETH without issuing a receipt token

Kiln Liquid Staking Pool

Staking for any amount of ETH with a dedicated liquid staking receipt token

Tokenized Validator FAQ

What is Kiln Tokenized Validator product?

Kiln Tokenized Validator is a staking solution for native Ethereum protocol staking in 32 ETH batches, but with the ability to generate a transferrable NFT that represents ownership and withdrawal credentials of the validator.

What are the main advantages of Kiln Tokenized Validator?

Representing a dedicated Ethereum validator as an NFT enables seamless transfer of ownership and withdrawal credentials. With Tokenized Validator, users can easily access or enter native staking with a dedicated validator by buying or selling a Tokenized Validator.

What are the main risks of Kiln Tokenized Validator?

The primary risks associated with Ethereum staking include smart contract vulnerabilities, slashing, and downtime. Kiln addresses these risks through the implementation of strong anti-slashing strategies and monitoring processes, which have received endorsement from the Ethereum Foundation. Our smart contracts have undergone thorough audits conducted by reputable industry leaders such as Spearbit and the Ledger Donjon.

‍

Since the launch of our first validators, Kiln has not encountered any slashing events, underscoring the efficacy of our anti-slashing strategies and our dedication to upholding the security and integrity of the staking process through best efforts.

‍

Please also note that the availability and suitability of this product may vary across jurisdictions and may not be accessible or suitable for use in all regions.

What is Kiln's latest ETH staking performance?

You can download our Ethereum monthly performance reports on this page.

Has this product been audited?

Smart contracts have undergone comprehensive audits conducted by industry leaders such as Spearbit and the Ledger Donjon. Access reports and read more about our security practices here.‍