FAQ

What is Ethereum Staking?

ETH staking involves locking up Ether (ETH) tokens to participate in the Proof-of-Stake (PoS) consensus mechanism. By staking, ETH holders can help secure the Ethereum network by verifying transactions and creating new blocks. This process not only supports the network’s stability but also allows participants to earn rewards, making it a potential source of passive income.

What are the risks when staking ETH?

While staking ETH offers many benefits, it also comes with certain risks. Partnering with professional service providers like Chainbase Staking can help mitigate these risks. We provide a 100% guarantee against missed rewards and slashing through our institutional-grade SLA contracts, ensure 99.9%+ historical uptime with ISO27001-certified technical infrastructure, and offer regulatory-compliant node setups. Below are some common risks of staking ETH and how Chainbase Staking can help mitigate them.

What is DVT Staking?

DVT, or "Distributed Validator Technology," allows a validator's responsibilities and risks to be shared among multiple participants, unlike traditional PoS (proof-of-stake) systems where each validator manages a single staking node. DVT’s primary goals are to enhance security, decentralization, and network resilience by eliminating single points of failure.

Chainbase Staking leverages DVT, primarily using SSV, to operate Ethereum Staking nodes. Our multi-region, multi-client setup ensures high availability and robust performance for validators.

What are the Advantages of Using DVT?

Enhanced Security and Fault Tolerance: DVT's distributed nature ensures that staking operations aren't reliant on a single node operator, significantly reducing the risks of system failures, security breaches, and attacks by sharing responsibilities across multiple providers.

Diversification and Risk Reduction: By distributing staking across various operators and locations, DVT lowers the risks associated with dependence on a single validator or site, leading to more stable and reliable staking outcomes.

Cost Efficiency: DVT optimizes operational costs by distributing tasks across multiple nodes, resulting in better cost-efficiency for clients.

High Performance and Reliability: With globally distributed nodes managed by top-performing operators, DVT systems offer higher uptime and consistent performance, potentially leading to greater staking rewards.

Why Staking Ethereum With Chainbase Staking?

Chainbase Staking simplifies the Ethereum staking experience with a comprehensive suite of enterprise-grade solutions tailored to your strategy. We are committed to delivering straightforward and effective Ethereum staking solutions for both institutional investors and individual clients.

• Complete Product Suite: Chainbase Staking offers a diverse range of Ethereum staking products designed to meet various staking needs and strategies. Our offerings include Chainbase Pool for wallet integrators, Stakewise Vaults for institutional and individual clients, direct staking, and partnerships with liquid staking services.

• High Availability Setup: As a professional node operator, we deploy highly reliable staking infrastructure across Tier 4 data centers located in different regions. Chainbase Staking’s infrastructure benefits from 24/7 monitoring and alerting, along with redundancy, to ensure maximum uptime and minimal missed rewards.

• Optimized Performance: MEV-Boost is enabled by default on all validators deployed through Chainbase Staking. For dedicated nodes and specific ETH staking requirements, we can customize the MEV strategy. Generally, redistributed MEV allows clients to achieve higher staking yields.

• Slashing and Missed Reward Guarantees: Through our institutional-grade SLA contracts, Chainbase Staking clients enjoy 100% protection against slashing and missed rewards. For added security, our clients can also benefit from additional coverage through our insurance partners.

• Enhanced Security: Chainbase Staking clients benefit from robust security measures to protect their staked ETH, ensuring assets are safeguarded, and rewards are maximized.

• Personalized Support: Our expert team provides personalized support, guiding you through every step of the staking process.

• Compliance and Transparency: When staking ETH through our direct staking services or dedicated vaults, we can accommodate a variety of regulatory requirements. This includes deploying nodes in specific geographies, providing fully dedicated client infrastructure without commingling assets, and fine-tuning the MEV strategy to meet your needs.

What is Restaking?

Restaking in Ethereum staking involves locking up staked ETH to support additional protocols built on top of Ethereum, such as certain Dapps or Layer 2 solutions. This process enhances the flexibility and utility of staked ETH, allowing it to secure multiple layers or protocols without needing to be unstaked. Rather than being limited to securing just the Ethereum mainnet, staked ETH can serve multiple purposes through restaking, potentially increasing the staker's returns. However, while restaking can boost rewards, it also introduces additional risks, as the staked ETH remains exposed to the security vulnerabilities of both the main blockchain and the secondary protocols it supports.

Currently, Chainbase supports restaking with Eigenlayer, further expanding the utility and earning potential for stakers on our platform.

What is Puffer Staking?

Puffer Staking is an Ethereum-native liquid restaking protocol that allows users to participate in Ethereum’s Proof of Stake (PoS) consensus with as little as 2 ETH, compared to the standard 32 ETH required to operate a validator node. This is achieved through a system of liquid staking tokens and restaking mechanisms, powered by EigenLayer—a decentralized service enabling stakers to earn additional rewards from actively validated services (AVS).

Key Features:

• Accessibility: Puffer Staking democratizes access to staking by pooling smaller amounts of ETH from multiple users to meet the 32 ETH requirement for validator nodes. This enables broader participation and additional earning opportunities.

• Safety Measures: Puffer incorporates advanced safety features, including an anti-slashing mechanism using Secure-Signer technology and Trusted Execution Environments (TEEs). These technologies safeguard validator keys and help prevent slashing penalties, ensuring the security and integrity of staked ETH.

• Incentives: Puffer has a points system that rewards user participation. Points can be earned through engagement with the platform and may be used in future airdrops or for additional rewards. Notably, Allnodes does not charge any fees on these points, ensuring 100% of rewards and points benefit the stakers.

• Validator Tickets (VT): VT are unique to Puffer and offer liquidity and flexibility for validators. They allow validators to trade their staking rights on a secondary market, providing a way to manage and potentially profit from their staked assets without the need to fully unstake them.

In summary, Puffer Staking enhances Ethereum staking by making it more accessible, secure, and rewarding, while also offering flexible options for managing staked assets.