Easy answers to difficult questions


How much ETH can be staked?
  • You must stake a minimum of 32 ETH.

  • The amount of ETH staked must be in multiples of 32 only. For example, 32 ETH, 64 ETH, or 96 ETH, etc.

  • 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?

You can choose to enable staking either by utilizing Luganodes APIs (recommended) or by directly staking through the Ethereum launchpad at https://launchpad.ethereum.org/en/.

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:

  1. Deposit Time: It takes approximately 13.6 hours for the 32 ETH to be confirmed on the beacon chain. In this duration, 2048 blocks are added to the network (which ensures that the transaction was not missed in any potential reorgs) and 64 epochs occur which help with the verification of the deposit details.

  2. Entry Queue: Depending on the total number of deposits, validators wait in a queue. With approximately 2025 validators activated per day (subject to change based on network conditions), the wait time is calculated based on the number of validators in the queue. For instance, if 6000 validators are in the queue, it will take about 2.96 days (6000/2025) for the 6001st validator 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.


What is the staking APR?

On an average, Ethereum provides an APR of 3.43%.

How are the total rewards calculated?

Total staking rewards consist of consensus layer rewards and execution layer rewards

  1. Consensus layer rewards: Rewards received by validators for proposing and attesting to the consensus rules of the Ethereum protocol.

  1. 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?
  1. Consensus Layer Rewards Distribution (aka Partial Withdrawals): 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 process typically takes approximately 2-5 days.

  1. 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.

Are my rewards compounded?

No, the rewards must be restaked manually once a minimum of 32 ETH is available.

Can I choose multiple wallets to receive my ETH rewards?

No, only your withdrawal address can receive the ETH rewards.

Does Luganodes run any MEV relays?


Exit Node/Full Withdrawals

How can you exit a node/withdraw your stake?

Exiting a Node with Luganodes Voluntary Exit API:

  1. Create Signed Challenge: The client creates a signed challenge with validator information and withdrawal address.

  2. Send Challenge & Signature: Send the challenge and its signature through the Voluntary Exit API request.

  3. 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.

How long does it take to exit a validator?

The total time taken to exit a validator is the summation of the different factors

  1. 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).

  2. Minimum validator withdrawability delay (rate limited by the Ethereum protocol): 256 epochs (27.3 hours)

  3. Automatic withdrawal process: (2-5 days)

Where do the staked ETH and pending rewards go after exiting?

All of them go to the withdrawal address of the client.


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:

  1. Initial Penalty:

    • A penalty equivalent to 1/32 of the effective balance is immediately slashed.

  2. Attestation Penalties:

    • Validators facing slashing will be unable to attest in the network and, hence, will not receive any rewards for attestations. This penalty persists until the withdrawable epoch, set at 8192 epochs (36 days) after the slashing.

  3. 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) / T

    S: 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.

What clients does Luganodes run?
  1. Consensus Client: Prysm

  2. Execution Client: Geth

What geographies do the Luganodes ETH validators run in?

France, Lithuania, Frankfurt

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