Kiln is a protocol staking platform that allows you to lock your ETH to fund an Ethereum validator and get ETH rewards in return directly through Ledger Live.
This tutorial describes ETH dedicated staking with Kiln which requires you to deposit at least 32 ETH. You can leverage dedicated staking with validator-as-service provider Kiln through Ledger Live.
Don't have 32 ETH? You might want to consider pool-staking your ETH with Kiln instead. However, please note that for legal reasons, US-based users cannot use the pool staking service through Ledger Live.
ETH dedicated staking with Kiln
Here is how you can leverage dedicated staking with Kiln through Ledger Live:
- Open the Ledger Live app and connect your Ledger device.
- Navigate to the Discover section.
- Select Kiln.
- Select Dedicated Staking.
- Choose the amount you want to stake. In case of dedicated staking, the amount you want to stake must be a multiple of 32 ETH.
- Click Stake.
- Review transaction details.
- Press both buttons to allow My Ledger to access your device.
- Open the Kiln app on your device.
- Confirm and sign the transaction with your Ledger device.
You're all set.
In the case of dedicated staking, the time for your stake to activate and begin getting rewards depends on the queue of Ethereum validators awaiting activation. This can usually span days to weeks, during which your ETH will be inaccessible and won't accrue rewards. For an estimated completion time for the activation queue, please refer to: ethstakers.club or validatorqueue.com
With dedicated staking, you're locking your ETH to fund a validator and get ETH rewards. On the other side, with pooled and liquid staking, the service provider takes your ETH deposits, stakes them, and gives you rewards.
No, you can also leverage pooled staking or combine dedicated and pooled staking — stake a multiple of 32 ETH with dedicated staking and stake the remaining ETH with pooled staking. You can learn more about pooled-staking here.
Your ETH is deposited into the Eth2 deposit contract and associated with a validation key that Kiln generates for you. This validation key is then used to instantiate a validator deployed on Kiln infrastructure. The validator performs on-chain duties on the Ethereum Beacon Chain, namely attestations and block proposals. For this activity, rewards are accrued to your withdrawal wallet.
Only the wallet you use to issue your deposit can be used to withdraw your stake and accrued rewards. Kiln or any other party cannot do that. This means you must ensure you retain control of the wallet you use to deposit your stake.
Here's how to do it:
- In the Kiln dashboard, navigate to Rewards. You'll see the list of the validators you're using.
- Click on the three dots next to the validator you want to withdraw the rewards from.
- Click Withdraw available rewards.
- Open the Ethereum app on your device.
- Review and approve the transaction with your Ledger device.
Once the transaction has been confirmed, the rewards will land in your wallet.
Following the April 12th, 2023 and Shapella upgrade, the Ethereum protocol automatically checks the validator balances above 32 ETH and sends rewards to the Ledger Live staking smart contract address. Then you can withdraw your rewards.
The withdrawal address is managed by the Ledger Live staking smart contract. From that address, you can claim and withdraw rewards to your wallet.
- Navigate to the Discover section of Ledger Live.
- Click Kiln to access your staking dashboard.
- Click Rewards in the top right corner.
- In the Staked balance section, click Request exit.
- Review and approve the transaction with your Ledger device.
Once the transaction has been confirmed, your validator will enter the exit queue.
You can track the progress and estimated exit time at https://beaconcha.in/.
Once the validator has exited, you can claim your 32 ETH plus any outstanding rewards.
This is expected. The process of a validator exiting from staking takes various amounts of time, depending on how many others are exiting at the same time. Validators continue to participate in the network and receive rewards until they are fully exited.
With dedicated staking, there are two components to rewards as described here.
Execution-layer rewards were immediately withdrawable.
Consensus-layer rewards were enabled in the Capella upgrade. Rewards are automatically distributed every few days.
Here’s a tutorial showing how to withdraw rewards through Ledger Live. You'll be able to claim your original 32 ETH batch stakes and consensus-layer rewards.
When you stake with this service, Kiln will operate the validator(s) on your behalf. If these validators are incorrectly operated, it is possible for a portion of the funds you have staked to be slashed, meaning they are destroyed by the protocol.
This is very rare in general and has never happened in Kiln’s history of operating Ethereum validators; Kiln's infrastructure is purpose-built to reduce this risk. You should however be aware that the risk is not 0.
Two smart contracts introduce an additional risk:
- The deposit contract takes the incoming ETH and deposits it into the Beacon chain deposit contract.
- The withdrawal contract retrieves your rewards and sends them back to you minus a commission sent to Kiln/Ledger. Only you can trigger this withdrawal and it can only go to your depositor's address.
Both contracts were jointly developed with Ledger and are continuously audited by Halborn and Ledger Donjon. Please get in touch with Kiln to receive the Halborn audit report. Please read this article to learn more about Kiln monitoring, slashing, and downtime mitigation.
No token is issued when you use this product. Your ETH isn't exchanged for another token but deposited into the Beacon Chain deposit contract to fund your validator(s). This doesn't constitute a taxable event in most jurisdictions (UK, US, and others).
For informational purposes, please consult your tax advisor for confirmation.
Kiln runs a combination of Prysm and Teku validator clients.
In that case, validators' keys would be given to the owners or Ledger to switch infrastructure providers. This would minimize downtime, prevent slashing, and make sure validators only run in a single instance.
To access your rewards, head over to the Discover section of Ledger Live and select the Kiln app. Once inside the app, you'll find the Rewards tab at the top right-hand side of the app window.