🏞️Native ETH Staking

Native ETH Staking Integration Guide

🌐 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

✅ 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

Faster Activations

New validators can activate in ~45 minutes (when queue is empty), instead of ~12 hours. Kiln

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

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

🏗️ 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 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

Smart contract ABI:

79KB
Kiln-FeeSplitter.json
Open

2. Staking Flow

Step 1. Generate validator keys

👉 Ethereum Key generation reference: /eth/keys API

Step 2. Use READ - predictSplitter (0x3f62e9b7) to compute deterministic splitter addresses.

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

Step 4. Call WRITE - createSplitterAndCall (0x608c54d4) on the Fee Splitter Factory to stake ETH.

👉 Deposit transaction crafting reference: /transaction/deposit API

3. Reporting & Monitoring

  • Partners can track staking activity and rewards via the Kiln Connect API (/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 Integration

  • 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.

  3. Integrate deposit flow with the Kiln API or local crafting.

  4. Start generating revenue from Native ETH staking.

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