Dedicated staking allows you to deposit multiples of 32 ETH to set up a validator. Kiln takes care of operating the validator on your behalf, managing the necessary hardware and software (nodes) for running it.
Validators enter an activation queue and will not receive rewards until activated. The queue time is based on the number of other validators awaiting activation. Queue time is displayed on-screen before staking.
Once activated, your validator will continue to operate until you decide to withdraw your stake and rewards. You have the flexibility to initiate this withdrawal process whenever you prefer.
Staking fee
Kiln currently retains 6% from the total rewards your validator receives. This is a promotional offer, allowing you to get this staking fees as long as you don't unstake.
Staking rewards
You receive all of the rewards generated by the validator, with Kiln deducting a fee.
Your rewards rate will be based on the rewards your own validator earns from participating in the Ethereum network.
The rewards generated by validators are determined solely by the protocol, with no involvement from Kiln.
Staking Risks
Please review the risks and the following documentation to ensure your understanding of staking and the product's operation.
Staking doesn't guarantee rewards and involves risks, including a loss of funds.
When staking with Kiln, you deposit your 32 ETH (or multiples) into a smart contract:
When you stake, you activate your own validators that secure the Ethereum network and receive rewards on your behalf.
Validators enter an activation queue and will not receive rewards until activated. The queue time is based on the number of other validators awaiting activation.
Your rewards rate will be based on the rewards your own validator earns from participating in the Ethereum network.
You can view your validator(s) and the status at any time at 'Dedicated > Validators'.
Who holds the validator keys?
Kiln generates and stores the validator keys used to operate all validators in both the Staking Pool and Solo staking. These keys are safely stored according to practices that have received SOC2 certification.
The withdrawal keys, which control the address and is eligible to receive the original stake and any accrued rewards upon a withdrawal, are controlled on your Ledger device.
What are the different validator statuses?
The lifecycle of an Ethereum validator involves several stages, which we simplify within the Kiln Widget for clarity:
ActivatingYou have initiated the creation of a validator by depositing 32 ETH. The validator is in the process of being activated and will not generate rewards until it is activated by the protocol.
The activation queue length is presented in the deposit flow and in safe transaction confirmation page.
ActiveYour validator is active, participating on the network and generating rewards.
Exit requestedYou have requested a validator exit. The exit request will be processed and will join the protocol's exit queue within 72 hours. During this time it is still active and generating rewards.
ExitingYour validator is in the protocol's exit queue, waiting to be processed to exit the active set. During this time it is still active and generating rewards.
Withdrawal processingYour validator has exited the active set and has now joined the queue for its balance to be unstaked and withdrawn. It is no longer active nor generating rewards.
The validator exit queue length is presented in the withdraw flow and in safe transaction confirmation page.
Ready to withdraw
Your validator is fully exited, the funds have been unstaked and the 32 ETH balance is now ready to withdraw. You can select one or more validators with this status and execute a 'withdraw rewards' transaction.
Exited
Your validator is fully exited, unstaked and all funds have been withdrawn. There is no further action to take
Validator Rewards
What reward rate should I expect?
The current rate does not assure future performance.
The widget displays the netaverage reward rate of all Kiln validators from the past 7 days, net of fees. This rate is updated daily and is published by Rated.
It represents the annualized percentage of rewards generated by all validators in relation to the total staked amount, excluding fees.
Individual validators do not generate consistent or linear rewards. Please read this for more detailed information on validator rewards.
What types of staking rewards will I receive?
Rewards are not guaranteed.
We invite you to read this informative article that provides insights into the expected staking rewards on the Ethereum network. It covers the various types of rewards and their characteristics in detail.
Ethereum staking offers two types of rewards: consensus layer and execution layer rewards.
Execution layer rewards tend to be less frequent but more substantial in value. Consensus layer rewards are received more frequently but are relatively smaller in value.
These rewards become available for withdrawing once they have been automatically "skimmed" by the protocol, which can take up to 9 days.
Are Kiln validators MEV-enabled?
Yes, we use all of the relays that are listed here so there is a cross section of max profit, ethical and regulated.
How long before my validator is active and starts receiving rewards?
Your validator will not receive ANY rewards until it becomes active.
The queue length will vary and is primarily determined by the number of other validators trying to enter the network.
Why am I receiving more / less than the rest of the network or the estimated rate on the Kiln deposit flow?
We invite you to read our comprehensive blog post that provides a deeper understanding of how staking rewards work and explores the different types of rewards in detail.
The average reward rate visible on the widget represents the average backward-looking rate of all Kiln validators over the past 7 days.
Staking rewards for dedicated validators aren't received consistently on a fixed schedule. Rewards may vary monthly, and it takes time for your validator to gain more opportunities, leading to fluctuating rewards. Over a year, the reward rate tends to stabilize, approaching the network average.
Understanding the dynamics of staking rewards and their fluctuating nature will help you manage your expectations and make more informed decisions as a staker.
Are my rewards automatically sent to my wallet?
No, you need to withdraw your rewards from the Kiln widget.
Are my validator rewards pooled and shared with all users?
No. Each validator earns and receives its own rewards from the protocol. Rewards are not shared or pooled.
Is my withdrawal address the wallet I staked from?
No. The withdrawal address of your validator is a smart contract managed by the staking smart contract.
Only the wallet from where you deposited can withdraw the rewards.
Security and Business Continuity
What are the security risks, and how do you mitigate them? Where can I find audit reports?
When you stake with this service, Kiln will operate validator(s) on your behalf. If these validators are incorrectly operated, it is possible that up to 100% of the staked ETH can be slashed, meaning they are destroyed by the protocol.
This is very rare and has never happened to any Kiln validators. Our infrastructure is purpose-built to mitigate this risk. You should however be aware that the risk is never 0.
Please read this article to learn more about Kiln monitoring and slashing and downtime mitigation.
There are two main smart contracts that introduce additional risk:
The deposit contract which takes the incoming ETH and forwards it into the Beacon chain deposit contract
The staking contract which retrieves your rewards. When you make a claim for the rewards, the smart contract and sends them back to you minus a commission that is sent to Kiln/Enzyme. The only wallet that can claim your rewards is the wallet that you originally staked from.
Both contracts were developed by Kiln and have been audited by Halborn, Spearbit and Ledger Donjon twice. Please visit https://security.kiln.fi to request the full audit report.
Who holds the validator keys?
Kiln generates and stores the validator keys used to operate your validator. These keys are safely stored according to practices that have received SOC2 certification.
Your withdrawal keys, which control the address and is eligible to receive the original stake and any accrued rewards upon a withdrawal, are controlled on your wallet.
What happens if Kiln goes out of business?
In the unlikely event that Kiln becomes insolvent, we have a business continuity and disaster recovery plan which we were certified for as part of our successful SOC 2 Type 1 (in 2022) and SOC 2 type 2 (in 2023) audits.
We also have an Ethereum-specific policy involving exiting all validators or transferring validation keys in case Kiln can no longer operate the service.
Withdrawing Rewards
How do I withdraw rewards?
Please find a detailed user guide bellow.
What are 'Total Rewards'?
This refers to the total sum of rewards generated by your validator from both the consensus layer and the execution layer since the beginning of your staking journey less the fees.
What are 'Claimable Rewards'?
These are the rewards that are currently available for you to withdraw.
Execution layer rewards are are available to withdraw as soon as they are received, while consensus layer rewards are transferred to the smart contract by the protocol following the regular validator sweep cycle (~every 8-10 days).
Unstaking
How do I unstake and exit my validator?
Please find a detailed user guide bellow.
Can I exit a validator that is still in the activation queue?
No. You can only exit a validator once it has been processed and becomes active. Validators in the entry queue cannot be exited.
How long does it take to exit a validator and fully withdraw my 32 ETH ?
Upon requesting a validator exit, you'll see an estimated timeframe for the complete exit, indicating when your 32 ETH will be available for withdrawal.
This is the estimated worst case total time for completing the validator exit process.
You can see an estimate of the full process here by scrolling down to 'exit' and ‘withdrawal' queue length. The total time of both queues is the most accurate estimate.
What happens after I request a validator exit?
This is a multi-step process that is a core function of the Ethereum protocol and cannot be influenced by Kiln, Ledger or any other node operator.
Upon initiating a validator exit, you'll be presented with the estimated total exit time, which encompasses the entire process detailed below:
Request validator exit
Request is processed by Kiln
Validator enters the 'exit' queue. It continues validating and earning rewards until processed
Validator is exited and removed from the active set. It stops participating in the network and no longer receives rewards.
Validator enters the 'withdrawal' queue to become withdrawable.
Validator waits for its balance to be skimmed by the protocols automatic 'validator sweep' process.
32 ETH is available to withdraw from "Dedicated > Validators".
After step 4 above, find your validator here and access the 'withdrawals' tab for a more accurate estimate for when your ETH will be available to be claim.
example
this example shows the withdrawal of 32.003087 ETH will occur in about 2 days 10 hrs
Once processed, the balance is sent to the Kiln/Ledger smart contract ready for you to withdraw.
Step-by-step guide
Safe{Wallet} - Stake page
Use the navigation sidebare to go in the Stake page to see all of active your staking positions and assets eligible for rewards:
In the eligible asset section, you can see the assets you can stake from the current safe wallet, the net recurring rewards expected from the best available staking option, you can directly get redirected to the deposit flow by clicking on the estimated amount of rewards you can generate
Navigate to the "Stake" tab to see all available assets and positions that generate rewards, and start depositing your assets
Once you have an open position you will be able to track the rewards generated and overall net recurring rewards from this page.
Stake ETH
You need more than 32ETH have your own validator and generate rewards from Ethereum staking
You can click on the "MAX" button to automaticly fill the max amount your can stake
You can see the expected NET rewards rate in green, when you hover this amount you can have some details on the gross rewards rate and the fees of the selected option
Once you selected an amount greater than 32ETH you will be able to see exactly what will happen after the staking transaction, from how many validators you will own to how much rewards you can expect to generate over one year of staking, at the bottom you can see how much fees this operation will cost you
After clicking on EARN, you should see the stake transaction confirmation, with information about the transaction you want you and your co-signers to sign, with information about the deposit amount, estimated rewards, fees and activation time
Make sure you see this confirmation screen to know that you are staking on the right contract.
Reporting
On stake landing page, you can see your active position, when you click on it you will access advanced reporting for your validators performances and rewards
You can click on the validator public key to see them on the explorer
You can claim your available rewards by clicking on ETH claimable button link
