FAQs
Easy answers to difficult questions
Pectra Upgrade
How much ETH can be staked ?
You can stake a minimum of 32 ETH and a maximum of 2048 ETH per validator.
Additionally, clients can use our APIs to distribute stake across validators through our updated node provisioning APIs.
How long does it take for a validator to become live?
Previously, there was a 16-24hr waiting period for deposits to be processed on the beacon chain. This delay has been reduced considerably to ~13 minutes.
What will happen to my validators after Pectra ?
Existing validators have the option to continue earning rewards with their 0x01 withdrawal addresses. They also have the option to convert their 0x01 addresses to 0x02 type withdrawals addresses in order to auto-compound their rewards and be eligible for partial exits.
Validators also have the option to consolidate their stake into a single validator upto 2048 ETH. Consolidation can be only done for one source and target validator.
What will happen to my rewards after Pectra ?
Validators will still continue earning rewards if they do not decide to consolidate or switch their withdrawal addresses.
However, validators will need to switch their withdrawal addresses to 0x02 type if they want to auto-compound their rewards.
Are there any changes to Withdrawals ?
Previously, withdrawals required validator keys for exit message generation. Post Pectra, withdrawals can be triggered through the execution layer by the withdrawal address. This is only applicable to validators with 0x02 type withdrawal credentials.
Reward sweep will only happen at the new maximum effective balance of 2048 ETH, hence clients will have the perform partial withdrawals from the stake balance in order to withdraw rewards.
Will validators earn more rewards if they consolidate their rewards ?
Yes, there is a minor increase in rewards due to auto-compounding. However, the probability of being chosen as a block proposer remains the same and will be based on the effective balance of the validator. Ex: 10 validators with 32 ETH will have the same probability of producing blocks as 1 validators with 320 ETH.
Are there any changes to slashing in the Pectra Upgrade?
The penalty for a slashed validator will decrease from 1/32 of the validator’s balance to 1/4096. For a validator with 32 ETH as the effective balance, the immediate penalty for slashing will drop significantly, from approximately 1 ETH to 0.008 ETH.
Attestation penalty increases linearly with the effective balances.
Will I earn rewards when I consolidate my validators?
When consolidation is triggered, source validator starts enters the exit queue and will continue to earn rewards until it has exited from the network. Target validator will acquire stake of source validator once source validator has exited from the network.
Staking/Deposit
How much ETH can be staked?
You can stake a minimum of 32 ETH and a maximum of 2048 ETH.
Users also have the option to stake with classic configuration ( 32 ETH per validator )
A maximum of 100 validators (or 3200 ETH) can be staked in a single request. You can stake more with multiple requests and there’s no limit.
How can you stake Ethereum with Luganodes?
For comprehensive details about the APIs, please consult the API documentation available here.
Is staking with Luganodes non-custodial?
Yes, staking with Luganodes is completely non-custodial. Lugaondes doesnt maintain the custody of your funds or the private key of the withdrawal address
How long does it take for a validator to become live and start earning rewards?
The activation time for a validator depends on two factors:
Deposit Time: It takes approximately 13 minutes for the ETH to be confirmed on the beacon chain. In this duration, 65 blocks are added to the network (which ensures that the transaction was not missed in any potential reorgs) and 2 epochs occur which help with the verification of the deposit details.
Entry Queue: Depending on the total number of deposits, validators wait in a queue. With approximately 57,600 ETH activated per day (subject to change based on network conditions), the wait time is calculated based on the stake in the queue. For instance, if 192,000 ETH is in in the queue, it will take about 3.33 days (192000/57600) for the stake to go live.
For real-time wait time information, please contact our team. We shall reach out to you promptly.
What is the withdrawal address?
A withdrawal address is the address which will receive the staked ETH and all the rewards after the unstaking process. To initiate the unstaking process, and to access the rewards, the client must ensure that they have the private key for the withdrawal address. It's important to note that Luganodes does not have any access or exposure to the client's withdrawal private key.
Can the withdrawal address be changed after depositing the ETH in the ETH Staking contract?
It cannot be changed if the withdrawal address was already set.
Rewards
How are the total rewards calculated?
Total staking rewards consist of consensus layer rewards and execution layer rewards
Consensus layer rewards: Rewards received by validators for proposing and attesting to the consensus rules of the Ethereum protocol.
Execution layer rewards: Priority Fees received by validators for processing transactions on the Ethereum network. It will also include any MEV rewards (if applicable).
Total staking rewards equals the sum of Consensus Layer Rewards and Execution layer rewards.
How are the rewards distributed?
Consensus Layer Rewards Distribution (aka Partial Withdrawals):
For validators with 0x01 withdrawal credentials: Periodic processing of these rewards occurs, and they are sent to the withdrawal address through an automated withdrawal process facilitated by the Ethereum protocol. This sweep happens once your stake hits the maximum effective balance ceiling of 32 ETH. This process typically takes approximately 5-10 days.
Execution Layer Rewards (Priority Fee) Distribution: The reward from the Execution Layer is credited to the validator immediately after the block is proposed. Subsequently, the validator can distribute these rewards to the client's withdrawal address at regular time intervals.
Can I choose multiple wallets to receive my ETH rewards?
No, only your withdrawal address can receive the ETH rewards.
Exit Node/Full Withdrawals
How can you exit a node/withdraw your stake?
Via Intent:
Create Signed Challenge: The client creates a signed challenge with validator information and withdrawal address.
Send Challenge & Signature: Send the challenge and its signature through the Voluntary Exit API request.
Luganodes Initiates Exit: Luganodes broadcasts a voluntary exit request to the beacon chain, triggering the exit process for the specified validators.
For detailed information on the Voluntary Exit API, refer to the documentation here. Via Wtihdrawal Address
Generate unsigned transaction: Call the Partial Exit API to receive an unsigned transaction which needs to be signed with your validator withdrawal address and broadcasted to the network.
How long does it take to exit a validator?
The total time taken to exit a validator is the summation of the different factors
Exit queue (min 5 epochs, or 32 mins): This will increase based on the no. of exit requests at a given instance (since only limited exits can happen in each epoch).
Minimum validator withdrawability delay (rate limited by the Ethereum protocol): 256 epochs (27.3 hours)
Automatic withdrawal process/Validator Sweep: (5-10 days)
Where do the staked ETH and pending rewards go after exiting?
All of them go to the withdrawal address of the client.
Miscellaneous
Do I maintain custody of my ETH tokens?
Yes, you maintain the custody of your ETH tokens since only you have access to the withdrawal address. Luganodes ETH staking is non-custodial and does not manage/have access to the withdrawal wallet’s credentials.
How do you get slashed?
There are 3 ways in which a validator can get slashed:
By proposing and signing two different blocks for the same slot.
By attesting to a block that "surrounds" another one (effectively changing history).
"Double voting" by attesting to two candidates for the same block.
Despite the differences in these slashing scenarios, they are all addressed and handled in the same manner.
How much are the slashing penalties?
In the event of slashing, there are three penalties imposed, as outlined below:
Initial Penalty:
A penalty equivalent to 1/4096 of the effective balance is immediately slashed.
Attestation Penalties:
The validator will have a penalty for missing attestations during the slashing period. For an APR of 3.00%, the corresponding inactivity penalty would be around 0.0598 ETH for each 32 ETH validator. With the Pectra upgrade, these penalties increase proportionally with the validator's effective balance and would result in a penalty of approximately 3.828 ETH for a validator holding 2,048 ETH.
Correlation Penalty:
Description: This is a variable penalty occurring at the halfway point of the withdrawable period. The penalty is determined by the correlation formula:
Correlation Penalty = (3 * S * B) / TS: Sum of effective balances of all slashed validators in the network (over the last 36 days)
B: Effective balance of the affected validator
T: Total balance of all staked accounts in the protocol (over the last 36 days)
How does Luganodes prevent slashing?
Double signing Protection, External Signing Authority (Remote Signer), Local anti-slashing database.
What is an epoch?
A period of 32 slots (slot is the time taken to create a single block), each slot being 12 seconds, totalling ~6.4 minutes.
Does my stake include the gas fee?
Gas fees are the fees paid for executing transactions on the Ethereum blockchain. When staking 32 ETH, you will have to pay the gas fees separately for the transaction to go through. Before staking, ensure that you have enough ETH in your sending wallet to cover both the staking amount, and the gas fees.
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