ETH staking
Stake multiples of 32 ETH on your dedicated validators through the Kiln dApp.
Kiln Dedicated staking mainnet smart contract address is:
0xEF650d5DbE75f39e2ec18A4381F75c8a4D4E19C8
Do not interact with other addresses. You can find more security information in the 🔒 security > dedicated staking section.
Kiln dedicated staking
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 retains 8% from the total rewards your validator receives.
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.
Please review the following documentation to ensure your understanding of staking and the product's operation.
FAQs
General
What are the risks of staking?
Staking is not risk-free.
Read our detailed overview of staking risks here.
How to stake using the Kiln dApp
Connect a wallet with 32 ETH or more.
Before staking, read and fully understand the 'terms and conditions' and product documentation to ensure you are familiar with how the product works
Use the slider to select the amount you wish to stake and press 'stake'
Follow all the on-screen prompts to review and confirm the transaction on your wallet UI
What happens when I stake 32 ETH?
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'.
How to check your validator?
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. 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.
What are the different validator statuses?
The lifecycle of an Ethereum validator involves several stages, which we simplify within the Kiln dApp for clarity:
Activating You 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 accessible within the "Dedicated > Stake" page, where you initiated the staking transaction.
Active Your validator is active, participating on the network and generating rewards.
Exit requested You 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.
Exiting Your 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 processing Your 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 was displayed when you initiated the validator exit transaction, and is always accessible within the "Dedicated > Stake" 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 is the reward rate I should expect to receive?
The current rate does not assure future performance.
The dApp displays the average reward rate of all Kiln validators from the past 30 days, excluding 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 rewards can I expect from staking?
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.
In summary, 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.
On the other hand, consensus layer rewards are received more frequently but are relatively smaller in amount. These rewards become available for claiming once they have been "skimmed" or "withdrawn" by the protocol, which typically takes around five days.
It's important to note that all staking rewards are generated by the Ethereum protocol itself and are not determined or influenced by Kiln, Ledger, or any other external entity. The rewards are a result of actively participating in the network and contributing to its security and operation.
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.
Before staking, you should check the estimated entry queue length here (scroll down to 'activation queue length'), or directly from the Kiln dApp ('Validator activation queue'):
New validators will join the ‘entry queue’ which is a function of the protocol and cannot be influenced by Kiln.
The queue length is primarily determined by the number of other validators trying to enter and can take multiple weeks / months.
Why am I receiving more / less than the rest of the network or the estimated rate on the Kiln dashboard?
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. It will provide you with valuable insights into the rewards mechanism and help you make informed decisions regarding your staking activities.
When viewing the estimated reward rate on the Kiln dApp, please keep in mind that it represents the average backward-looking rate of all Kiln validators over the past 30 days. It is important to note that staking rewards are not earned in a linear fashion on a daily, weekly, or monthly basis.
The rewards earned by your validator will vary from month to month, and it may take time for your validator to have more opportunities to participate in the network's validation process, resulting in increased reward potential. Over time, the reward rate tends to smooth out, and after a year, you can expect your validator's actual rewards rate to be closer to 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 claim your rewards from the Kiln dApp.
See here for guidance on claiming your rewards.
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 you, the wallet from where you deposited, can claim and withdraw the rewards from the smart contract.
When you withdraw your available rewards, you will receive these to your wallet minus the staking fee. For example, if you are claiming 1 ETH rewards and the staking fee is 8%, you will receive 0.92 ETH while 0.08 ETH is sent to Kiln.
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?
To claim your rewards in the Kiln app, follow these steps:
Connect your wallet
Navigate to the 'Rewards' section.
Select the validators from which you want to claim the rewards.
Click on the 'withdraw rewards' button.
Follow the on-screen instructions to approve the transactions.
In the case you received both EL and CL rewards, you will need to sign one transaction to withdraw CL rewards and another one for EL rewards, in Q4 we plan to make this flow smother so that you can withdraw everything in one transaction.
Once the transaction is confirmed, you will be able to see your claimed rewards in your wallet.
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.
What are 'Withdrawable Rewards'?
These are the rewards that are currently available for you to withdraw.
Execution layer rewards 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 5-7 days).
Why are 'Total' and 'Withdrawable' rewards different?
'Total' includes all rewards the validator has ever received, including those you have previously claimed and those consensus layer rewards the validator has earned but not yet received.
Who can withdraw my rewards?
Only the wallet used for the initial deposit can be utilized to withdraw your rewards from the Kiln smart contract.
Kiln nor any other entity has access to your ETH. It is therefore imperative that you maintain control over your wallet and take precautions to prevent any loss or compromise of access.
Why am I seeing withdrawals from my validator? I did not initiate them!
Since the Shapella upgrade on April 12th 2023, the Ethereum protocol has introduced an automated process known as "sweeping" for validator balances exceeding 32 ETH.
This process occurs regularly and typically takes ~5-7 days to complete across the entire network. During this sweeping process, rewards are transferred from the validator to the withdrawal address (an address held by the Kiln Staking Smart Contract), where they can be withdrawn by the wallet that originally staked.
To view and withdraw your rewards, simply open the Kiln app and navigate to the "Rewards" section. From there, you will be able to see the accumulated rewards and proceed with the withdrawal process.
Unstaking
How do I unstake and exit my validator?
To exit your validator from the Kiln dApp you can follow these steps:
Connect the wallet you initiated your original stakes from
Click ‘Rewards’
Select one or multiple validators that you wish to exit
Select ‘request exit’,
Follow all the on-screen prompts to review and confirm the transaction
Once the transaction has been confirmed your validator will enter the protocol exit queue. This may take up to 48hrs before joining the exit queue.
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 ?
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.
There are three main steps to the process:
validator exit
validator balance is withdrawable, and
automated withdrawal of balance.
All steps involve queues and waiting times that are automatically managed by the Ethereum protocol.
Validator Exit
Choose your validator in the Kiln app, and select "Request Exit". The status will change to 'Exit Requested', waiting to be processed by Kiln (up to 48hrs).
Once processed, validator will join the validator exit queue. The status will change to 'Exiting' and waits to be processed by the protocol. It will continue validating and earning rewards until fully exited. NOTE: Processing time depends on the number of other validators exiting.
Validator is processed and is removed from the active set. The status will change to 'Exited'. Validator stops participating in the network and no longer receives rewards.
Balance is 'withdrawable'
Validator then enters a queue to become 'withdrawable'
Validator is processed by the protocol and the status changes to 'withdrawable'.
Validator / ETH Withdrawal
The balance of 32 ETH + outstanding rewards is now eligible to be withdrawn via the automated protocol via the 'validator sweep' (skimming) process.
Once the "validator sweep" reaches your validator, your balance will be fully withdrawn to the Kiln smart contract. NOTE: This could take 5 days or more, depending on where the automated process is. It processes all validators in order, based on index number, with only a small amount processed every epoch. Find your validator here and view 'withdrawals' for an estimate. 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.
Withdraw rewards
Open the Kiln app, ‘withdrawable rewards’ will update to include the balance
NOTE: at all times throughout this process you can click through to your validator via the Kiln dashboard (or view directly at https://beaconcha.in/ by searching for your validator) to see more details on timing, queue position, and where it is in the entire process.
Kiln cannot influence the automated protocol process or queue.
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