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Lido Community Staking Module (CSM)


Lido CSM Overview

Lido is a liquid staking solution for Ethereum that addresses the liquidity issues of traditional staking. Instead of locking up assets and losing access to them, users can stake through Lido and receive liquid tokens. These tokens retain the value of the staked assets and can be used elsewhere while still earning staking rewards.

Lido, with over 9 million ETH staked on its platform, is a significant contributor in the Ethereum ecosystem. To broaden and diversify its network of node operators, Lido recently introduced the Community Staking Module (CSM), the first Lido module with a permissionless entry for Ethereum staking. By first providing an ETH-based bond, anyone can now become a node operator by running validators in the Lido protocol. Designed with solo and community stakers in mind, the CSM lowers the barrier to becoming an Ethereum validator, requiring far less than the standard 32 ETH, and offers a user-friendly experience. While tailored for smaller stakers, it is open to all, including professional operators.

info

Becoming a Lido Node Operator is recommended for users with some experience in running validators. The process requires a basic understanding of the Ethereum network and the Lido protocol. If you are new to staking, we recommend setting up a validator on the Testnet first to familiarize yourself with the process, see Staking on the Ethereum Testnet.


Become a Lido Node Operator with Dappnode

Dappnode provides an easy-to-use and intuitive interface for most of the infrastructure needed to become a Lido Node Operator. The process is straightforward and requires only a few steps to set up a node operator and start earning rewards. An overview of the process is how the Lido CSM UI will greet you when first connecting your wallet to the dApp:

Lido-CSM1


First Steps to create a Node Operator in Dappnode

  1. Getting your Dappnode ready:

    warning

    It is mandatory to choose at least one relay to ensure the node operator does not propose vanilla blocks. When uploading the keystores with the "Lido" tag, this requirement will be automatically checked. As a Lido Node Operator, it is your responsibility to ensure that your infrastructure is properly using MEV Boost.

2 Create the Keystores & Deposit Data: In order to run a validator, you need to generate the necessary keystores and deposit data. The keystores must be created with the withdrawal credential of Lido:

  • Holesky: 0xF0179dEC45a37423EAD4FaD5fCb136197872EAd9.
  • Ethereum: 0xb9d7934878b5fb9610b3fe8a5e441e8fad7e293f.
  • We recommend using official tools like Staking-Deposit-CLI or the Wagyu Key Gen Tool to create the keystores. This step is crucial and mandatory.

The validator Keystores will be used to run the validators on the Ethereum network, while the deposit data will be used to register the validators in the Lido protocol.

Lido-CSM2

warning

Make sure you correcly set the withdrawal address up, otherwise the Lido CSM won't let you move forward with the validator deposits.

  1. Upload the Keystores in your Dappnode:

    • Go to the Web3signer UI for Ethereum or Holesky.
    • Upload the keystores and tag them with "Lido".
    • The fee recipient will be automatically set to 0xE73a3602b99f1f913e72F8bdcBC235e206794Ac8 for Holesky and 0x388C818CA8B9251b393131C08a736A67ccB19297 for Mainnet. It is not editable.

Lido-CSM3

caution

Double-check that your Lido keystores are tagged correctly. This is crucial to ensure that the node operator is properly set up, and has the correct fee recipient set.

danger

Do not edit the fee recipient address. Doing so will result in penalties.

  1. Register as a Lido Node Operator & your validators:

    • Navigate to the Lido Deposit UI and complete the deposit process by submitting the deposit_data.json file you generated with your keystore(s). Lido-CSM4
    • You'll be prompted to sign an ETH bond depending on the number of validators you're submitting to the CSM.
    • Once the deposit has been confirmed, the CSM and then the Beacon Chain will process your deposit. Keep in mind you'll have to wait 16-24 hours plus the Becaon Chain's entry queue for your validators to activate. Your node operator setup is now complete!

Refer to the Lido Community Staking Module documentation for more details: