# Native ETH Staking

### 🌐 Overview

This guide explains how partners can integrate **Native Ethereum (ETH) Staking** through Kiln, enabling their users to stake ETH natively while platforms monetize staking rewards in a secure, onchain way.

**Native ETH staking x Kiln fee splitter offers:**

* Reduced smart contract risk
* Full support for the latest Ethereum protocol features (Pectra upgrade)
* Seamless monetization for platforms through onchain fee-splitting

<figure><img src="https://1911902555-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fnye3yqpuOzdfrtWAlwng%2Fuploads%2FY0sJjWcnZxHGWE5wHqQB%2FFee%20Splitter%20Kiln%20Products%20(1).png?alt=media&#x26;token=bd871ce7-a17d-4f20-bfbf-f4e1a0dea7ae" alt=""><figcaption></figcaption></figure>

### ✅ New feature for Stakers

By supporting Ethereum’s Pectra upgrade, Kiln unlocks new features that directly improve the staking experience. Here’s what users gain:

| Feature                                                           | Benefit to Users                                                                                                                                                                                                                                                                               |
| ----------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Higher Effective Balance (up to 2,048 ETH) & Auto-Compounding** | Users can benefit from compounding of rewards — e.g. staking rewards reinvest automatically within a validator — leading to a \~1.5 % relative uplift in APR vs. static staking. [Kiln](https://www.kiln.fi/post/ethereum-pectra-upgrade---everything-you-need-to-know?utm_source=chatgpt.com) |
| **Faster Activations**                                            | New validators can activate in \~45 minutes (when queue is empty), instead of \~12 hours. [Kiln](https://www.kiln.fi/post/ethereum-pectra-upgrade---everything-you-need-to-know?utm_source=chatgpt.com)                                                                                        |
| **Partial Withdrawals & Top-Ups**                                 | Users can withdraw or add ETH from an active validator (so long as it stays ≥ 32 ETH) without needing to exit fully. [Kiln](https://www.kiln.fi/post/kiln-dashboard-goes-pectra-compounding-consolidation-made-simple?utm_source=chatgpt.com)                                                  |
| **Flexible Withdrawal Control**                                   | Via EIP-7002, withdrawals can be triggered via execution-layer transactions, giving users more control and removing dependency on operators for exits. [Kiln](https://www.kiln.fi/post/ethereum-pectra-upgrade---everything-you-need-to-know?utm_source=chatgpt.com)                           |

***

### 🏗️ How It Works

1. **Operator Setup**
   * Partners configure their operator once, defining fees and revenue share.
   * Example: Acme x Kiln Operator with 25% fee on block rewards, split 50/50 between Acme and Kiln.
2. **Fee-Splitter Mechanism**
   * End-users stake ETH through the **Kiln Fee Splitter contract**, which automatically handles both:
     * The deposit to the Ethereum staking contract, can be in batch of 2048 ETH
     * The partner revenue share on execution fees dispatching
3. **User Experience**
   * From the end-user perspective, staking requires a **single transaction**, all staking interactions are done via the vanilla ETH staking flow while the partner monetization is seamlessly enforced onchain.

***

### 💰 Revenue Model

* Service fees are taken as a percentage of **Execution Layer (EL) rewards**.
* Partners and Kiln share the fee revenue automatically via the Fee Splitter contract.

**Illustrative Example (at $1B TVL):**

| Item                                        | Value  |
| ------------------------------------------- | ------ |
| ETH Price                                   | $4,200 |
| Yearly EL Rewards (USD)                     | $2.8M  |
| EL Service Fees (80% - 8% of total rewards) | $2.24M |
| Partner Share (50%)                         | $1.12M |
| Kiln Share (50%)                            | $1.12M |

***

### ⚙️ Technical Integration

#### 1. Fee Splitter Setup

* Kiln will use the [Kiln Fee Splitter Factory](https://etherscan.io/address/0x8659EEFF31CFcff580D37AF8e7Af250F8998aA83#code) to create their the partner operator.
* Parameters:
  * **Owner** – partner address
  * **Operator name** – identifier for the staking product
  * **Operator fee** – percentage fee charged
  * **Recipients & percents** – fee split across stakeholders

👉 Reference: [Fee Splitter Audit](https://security.kiln.fi/resources?s=cja9w9kwvmnbs4klbntxyu\&name=fee-splitter-audit-2024-04-04-.pdf)

Smart contract ABI:&#x20;

{% file src="<https://1911902555-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fnye3yqpuOzdfrtWAlwng%2Fuploads%2F8JIpSJIozJaBwBeGXSDS%2FKiln-FeeSplitter.json?alt=media&token=7b630c2a-7d07-4211-a257-5abe9a09014d>" %}

***

#### 2. Staking Flow

**Step 1.** Generate validator keys

👉 Ethereum Key generation reference: [/eth/keys API](https://docs.api.kiln.fi/reference/postethkeys#/)

**Step 2.** Use **READ -** [**predictSplitter (0x3f62e9b7)**](https://etherscan.io/address/0x8659EEFF31CFcff580D37AF8e7Af250F8998aA83#readContract#F5) to compute deterministic splitter addresses.

**Step 3.** Craft the deposit transaction with the Fee Splitter as the recipient.

**Step 4.** Call **WRITE -** [**createSplitterAndCall (0x608c54d4)**](https://etherscan.io/address/0x8659EEFF31CFcff580D37AF8e7Af250F8998aA83#writeContract#F4) on the Fee Splitter Factory to stake ETH.

👉 Deposit transaction crafting reference: [/transaction/deposit API](https://docs.api.kiln.fi/reference/postethdeposittx#/)

***

#### 3. Reporting & Monitoring

* Partners can track staking activity and rewards via the [Kiln Connect API](https://docs.api.kiln.fi/reference/getethstakes#/) (`/stakes` endpoint).
* Full compatibility with existing Kiln reporting infrastructure, for any staking provider.
* Note: now the validators can have +32ETH in their balance, and support partial deposit and exit as referred in the API specs

***

#### 4. Optional: [Widget](https://docs.kiln.fi/v1/kiln-products/widget) Integration

<figure><img src="https://1911902555-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fnye3yqpuOzdfrtWAlwng%2Fuploads%2FvFwSrd8uKeVzbAlsa5yY%2FWidget%20design%20(2).png?alt=media&#x26;token=26738a17-c11d-4e45-ba9b-f3de2a48e757" alt=""><figcaption></figcaption></figure>

* Partners can integrate Kiln’s staking **widget** for:
  * Upgrade from previous validators to compounding validators.
  * Deposits (from 32 ETH to any amount in one Tx)
  * Validator top-ups
  * Partial withdrawals
  * Complete withdrawals

This reduces integration effort while providing a ready-made UI for end-users.

***

### Key Benefits for Partners

* **Revenue stream**: Monetize ETH staking directly via protocol-native rewards.
* **Seamless UX**: One-step staking process for end-users.
* **Future-proof**: Aligned with Ethereum upgrades (Pectra and beyond).
* **Security-first**: Minimized smart contract exposure with audited Kiln Fee Splitter.

***

## 📌 Next Steps

1. Define your **operator parameters** (fee, revenue share, recipients).
2. Kiln deploy operator via the [Fee Splitter Factory](https://etherscan.io/address/0x8659EEFF31CFcff580D37AF8e7Af250F8998aA83#code).
3. Integrate deposit flow with the [Kiln API](https://docs.api.kiln.fi/) or local crafting.
4. Start generating revenue from Native ETH staking.