Bonded Validators
Last updated
Last updated
Conventionally, running an Ethereum validator node as a solo staker required you to deposit 32 ETH into the beacon deposit contract.
However, there are options available today to significantly reduce this capital requirement in the form of bonded validators. The basic mechanism works as follows:
Liquid stakers stakes native ETH into smart contracts of liquid staking protocols
Node operators provide some amount of ETH as collateral or bond (e.g., 1/2/4/8 ETH) to serve as the first line of defence against slashing events, poor performance, & MEV theft.
Liquid staking protocols assign some amount of staked ETH of liquid stakers to node operators to fulfil the 32 ETH minimum requirement per active validator key
Fee distribution: Liquid staker pay some fees (e.g., 10% or 14%) to the liquid staking protocol and a majority portion (or all) of this flows to node operators
Hence, bonded validators enable node operators to lower their capital requirements and boost their rewards rate as compared to native solo staking.
Option | ETH bond | ETH matched | Non-ETH bond | Fee % | Note |
---|---|---|---|---|---|
There are 2 methods of setting up bonded validators today.
You can also run multiple bonded validator clients on the same hardware, provided that you have sufficient resources (e.g., CPU, RAM, Disk) on your hardware to meet the minimum requirements of each additional service.
You can also run DVT clients alongside bonded validator clients.
Rocketpool
8
24
2.4 ETH worth of RPL
14% out of 14% total
8% APR on RPL staked
Stader
4
28
0.4 ETH worth of SD
6% out of 10% total
7.97% APR on SD staked
Lido
2
32
None
8% out of 10% total
Bond provided in stETH which also accrues rewards
Ether.fi (WIP)
Puffer (WIP)