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Stake Ethereum with Kiln, enterprise-grade staking
Ethereum
What is Ethereum?
Ethereum is a decentralized blockchain network; its native token or cryptocurrency is called Ether or ETH. Launched in 2015, it is now the world's second-largest blockchain platform by market capitalization after Bitcoin and it is the first to introduce smart contract functionality.
On Ethereum, you can build a range of decentralized applications. As said by the nonprofit Ethereum Foundation: “Ethereum can be used to codify, decentralize, secure and trade just about anything.”
What is staking?
Staking cryptocurrencies consists in locking native tokens (e.g ETH) in a Proof-of-Stake blockchain to earn the right to participate in its security for a given period. It has overtaken mining as the primary way to secure blockchain networks.
It’s a way to secure a chain by proposing new blocks or attesting to other validator's blocks to earn rewards in form of additional coins or tokens.
Why should you stake your assets?
Staking generates one of the safest and most predictable ways to get rewarded in the crypto space. It is the most natural reward feature in crypto as the value originates from the blockchain native currency inflation and a share of transaction fees.
You can stake your ETH as well as other PoS cryptocurrencies to:
- 1Put your treasury to work
- 2Diversify and earn
- 3Bring new opportunities by enabling your users to earn staking rewards
How to stake Ethereum with Kiln?
To stake ETH in a few clicks, just follow the next steps. It should take you less than 5 minutes to complete your first transaction:
- Login to https://stake.kiln.fi/dedicated/stake
- Choose the amount of ETH you want to stake (must be a multiple of 32ETH)
- Connect your wallet (either web extension wallets or via WalletConnect)
- Click on the “Stake” button!
As easy as pie! No need to generate validation keys, send deposit information to the smart contract, connect with the Beacon chain… Kiln Onchain takes care of everything.
To stake ETH, you need 32 ETH to run your own validator and start staking. You can also participate in staking pools to mutualize your ETH (and staking rewards) with other users to reach the 32 ETH threshold.
Detailed information about Kiln validators can be found here
How the Pectra upgrade on Ethereum will change staking?
The Pectra update on Ethereum allows the merging of existing validators, significantly altering validator dynamics.
By consolidating 32 ETH validators into a single, larger entity with up to 2,048 staked ETH, this update promotes resource efficiency and reduces overhead for individual stakers, while maintaining the network's security.
Learn more about Pectra in our in-depth blog post.
Why should you stake your ETH with Kiln?
With more than 4.5% share of all ETH staked and heavy involvement within the community (Lido, Alluvial, Flashbots), Kiln has a strong track record running Ethereum validator. Kiln is the leading enterprise-grade staking platform enabling institutional customers to stake Ethereum, and build whitelabel Ethereum staking functionality into their offering.
- Stake ETH in 1 click
- Manage all your ETH stakes and rewards from a single dashboard
- Non-custodial, work with your existing custodians solutions e.g. Fireblocks
- SOC 2 Type II certified and Industry leading SLAs (0 penalties recorded and 99.95% effective uptime)
To learn more about Kiln's validator performance, go to our report page.
Protocol Card
Token
ETH
GRR
3-4%
Number of live validators
1M+
Consensus
PoS
Node type
Full archive node and validators
Stake Ethereum FAQ
What does Proof-of Stake mean?
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.
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.
When will I receive ETH rewards?
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.
Can I choose which wallet to receive my rewards on and can I split them between multiple wallets?
Yes, when staking Ethereum you can decide which wallet to receive your rewards.
Are gas fees automatically charged on top of the 32ETH from the sending wallet and if not, how will the network fee be charged?
Gas is the fee paid for executing transactions on the Ethereum blockchain. They will be charged on top of the 32 ETH.
What are the risks associated with staking ETH?
The main risk is slashing. An Ethereum validator can be slashed if:
- It signs two attestations with a different head
- It surrounds another attestation with its attestation
- It submits two attestations with the same target
To prevent any risk, Kiln works with the “Better down than slashed” motto and applies the best industry standards to its Ethereum infrastructure.
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.
Is there a minimum and maximum amount to stake for Ethereum?
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.
Do I maintain custody of my ETH tokens? Is ETH staking non-custodial?
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.
What is the lockup period to stake Ethereum? When can I unstake and withdraw my ETH?
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.
How do rewards and penalties work?
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.
What is the average block time on Ethereum?
The average block time on Ethereum is currently 12 seconds.
What is an Ethereum validator?
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.
What is MEV?
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.
What is a Gross Reward Rate (GRR) and how is it different from a Net Reward Rate (NRR)?
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.
Secure your Ethereum: How to keep your ETH safe?
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.
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.
Learn how Ledger can help you to create Ethereum wallet to secure your ETH.
Where can I learn more about Ethereum?
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.