Stake Ethereum with Kiln, enterprise-grade staking

Proof-of-Stake (PoS) is a type of consensus mechanism used to validate cryptocurrency transactions. Through PoS, validators can contribute to the block production of a chain while keeping environmental concerns to a minimum, which is becoming an increasingly large issue in Proof-of-Work.

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By staking capital rather than energy, validators risk losing a portion of their value and future potential for staking by misbehaving while creating blocks. This incentives collaboration and fair practices while validating information in a similar way that PoW has with incentives and punishments to curtail malicious activity while creating consensus.

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Staking rewards start to accrue as soon as the validator is active. Part of the rewards are liquid and immediately retrievable (so-called execution-layer rewards, consisting in about half the yield). The other part are ‘locked’ until withdrawals are enabled on the Ethereum network, which is expected 6-12 months after the Merge upgrade.

Yes, when staking Ethereum you can decide which wallet to receive your rewards.

Gas is the fee paid for executing transactions on the Ethereum blockchain. They will be charged on top of the 32 ETH.

The main risk is slashing. An Ethereum validator can be slashed if:

1. It signs two attestations with a different head
2. It surrounds another attestation with its attestation
3. It submits two attestations with the same target

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To prevent any risk, Kiln works with the “Better down than slashed” motto and applies the best industry standards to its Ethereum infrastructure.

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Kiln also partnered with Nexus Mutual and offers a coverage policy to protect against middle slashing events. Nexus Mutual is the trusted partner for tier-1 institutional funds, family offices and custodians that seek protection across the crypto industry. 

Apart from the risk of slashing, there can also be a downtime risk that means that a node is not signing transactions. However to prevent it, Kiln provides for a strong monitoring process.

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Yes, currently you must first have 32 ETH or a multiple of 32 ETH to participate. However we are working on a ‘pooling’ product for lower amounts.

You can maintain custody of your ETH through any wallet or custodian solution of your choosing. Kiln’s ETH staking is non-custodial, only you can access your funds by controlling the underlying wallet which holds a claim to the funds.

On Ethereum, there is no longer a lockup period thanks to the Shappella upgrade implemented in April. Withdrawals (full and partial) are now possible, although it's important to note the presence of an exit queue on the Ethereum network. To gain a better understanding of how the exit queue functions, we recommend referring to the provided article.

For every slot, the validator is expected to sign attestations. If submitted attestations are good, the validator receives rewards, otherwise it receives penalties. In case the validator is offline it will also receive penalties.

The average block time on Ethereum is currently 12 seconds.

From an infrastructure point of view, an Ethereum validator is just a validation keypair. Multiple validation keys can run in one light program called a “validator”. This validator is connected to a Beacon Chain node which is paired with the rest of the network and constantly fetches the state of the chain. Over 15, 000+ live validators on Ethereum are deployed on Ethereum through Kiln On Chain.

MEV means “Maximal Extractable Value” and it refers to the maximum value that can be extracted from block production. Kiln was the first node operator to deploy Flashbots’ solution on PoS Ethereum. You can check our latest article about MEV from our experts.

In the context of Proof-of-Stake blockchains, the gross reward rate (GRR) refers to the total or gross amount of rewards earned from staking before deducting any fees or expenses. This is a reward rate that fluctuates with the operations of the protocol and the performance of validators, it is not set by Kiln. The net reward rate (NRR), on the other hand, takes into account the deductions or expenses, providing a measure of the actual rewards received after subtracting fees or costs.

To ensure the security of your Ethereum (ETH) and other crypto-assets, it is crucial to utilize a hardware wallet such as Ledger. Ledger is a renowned cold storage wallet that provides an additional layer of protection against the increasing risks of online attacks.

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The Ledger Live interface, available with all Ledger devices, provides a comprehensive platform for managing assets stored on a Ledger device. With Ledger Live, users can not only buy and transfer assets but also directly engage in staking through the Kiln application. This seamless integration offers a convenient and secure way to maximize the potential of your assets.

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Learn how Ledger can help you to create Ethereum wallet to secure your ETH.

There are many existing resources but we invite you to visit the Ethereum foundation's website and to check our latest articles about the Merge and the Ethereum blockchain on our blog.

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