All Collections
LSD Networks
LSD Network & Three Pool Staking FAQ
LSD Network & Three Pool Staking FAQ

Answers to common LSD Network and Three Pool Staking questions.

Written by Stakehouse
Updated over a week ago

Q: What are LSD Networks?

A: LSD Networks is a Stakehouse dApp that provides automated match-making services for Node Operators and ETH Staker. It consists of a Three Pool Staking structure which gives users the flexibility and choice to stake their ETH according to their specific needs:

  1. Protected Staking - stake any amount of ETH in exchange for 100% of the staking yield (which earns 33% more than the Ethereum network rate).

  2. MEV Staking - stake any amount of ETH in exchange for 50% of MEV and tips (at the average rate of all validators in the LSD network).

  3. Node Operator Staking - stake a 4 ETH bond per validator in exchange for 50% of MEV and tips (at the validator’s rate).

Q: Is the LSD Networks dApp on Mainnet?

A: Yes! Please refer to the following official links:

Q: Are there any commissions in the LSD Network?

A: By default, LSD networks are commissioned and permissionless. However, LSD Network creators can set their own commission structures and gateway parameters on deployment.

Q: Is it true that I can stake a vaildator with only 4 ETH?

A: Yes you can. Node Operators can stake a validator in an LSD Network with only 4 ETH. The rest of the liquidity is automatically sourced from Protected Stakers and Fees & MEV Stakers. You can learn how to do this here.

IMPORTANT NOTE: Node Operator staking requires you to run your own node. This is a separate computer device which is specifically meant for this purpose. You can learn about common node providers here. If you do not have a node set up, we highly encourage you to participate in Protected Staking or MEV Staking instead.

Q: What’s the difference between Protected Staking and Fees & MEV Staking?

A: Protected Stakers allows can stake any amount of ETH and earn 100% of the staking rewards generated by all the validators across the LSD Networks protocol. Protected stakers earn staking rewards at a 33% higher rate than traditional ETH staking.

MEV Stakers can stake any amount of ETH and earn 50% of the MEV & Tips generated by the validators in their LSD network.

Q: Are there any staking limitations?

A: The minimum staking limit is 0.001 ETH. There is no maximum limit to stake in a Giant Pool. At any point LSD Networks utilize ETH from the pool for its validators on three-tier batches, for every validator maximum ETH allowance is set as follows: 4 (from MEV Staking pool), 4 (by node operator) and 24 (from Protected Staking pool).

Q: Why is my validator not earning?

A: Your validator must be staked to start earning rewards. Once you deposit 4 ETH as a Node Operator, you will have to wait until you can pair your deposit with 28 ETH sourced from other stakers before you can stake it.

Once your validator is ready to be staked, you will be able to complete the staking process on the "My Validators" tab on the "Manage" page in the LSD Networks dApp. In order for rewards to be distributed to stakers (including you, the Node Operator), you must mint the validator's derivative tokens. This can be completed on the same tab. (See image below)

Q: My validator has been staked but my LP tokens are still not earning rewards.

A: The Ethereum consensus layer has a dynamic queue for validator activation. If your validator status is active, check that derivatives for that validator have been minted to reflect the earnings on LP tokens. Also make sure that your node is working properly.

Q: Why can't I mint derivatives?

A: Most likely this is because you haven’t staked your validator yet or because you haven’t set up your node. You can learn about setting up a node here.

Q: How long does it take for my deposit to get staked into a validator?

A: This depends. Since your deposit must be paired with other stakers’ liquidity, the time until it is staked may vary. As a Node Operator, it is up to you to actively watch your validator’s status and stake it when it is ready.

Q: I have a staked position as a Protected Staker but I have no dETH available to claim. Why is this happening?

A: It takes some time for your ETH deposit to be staked into a validator. Once it is staked and the derivative tokens are minted, your position will become claimable in dETH and you will start accruing rewards.

Q: Does the DAO or the LSD network owner have direct access to the funds in the pool?

A: No. Every ETH deposited must be associated with a BLS public key. The LSD Network owner has the authority to manage node operator whitelisting and smart wallet. Funds in the pool can only be used to stake a validator. Stakehouse has no access to funds.

Q: Am I allowed to leave an LSD Network?

A: Every user has the right to leave an LSD network at any time. A depositor or staker can sell their LP tokens to someone else or burn them to redeem ETH or dETH. A node operator can withdraw their ETH (as long as it’s associated BLS public key is not staked). Once a node operator has withdrawn the ETH, the LSD Network will quarantine the BLS public key associated with that specific deposit. Also, depositors who bought LP tokens for this BLS Public key can rotate their tokens to a new BLS public key. After the node operator’s BLS public key is staked, he can opt to Rage Quit.

Q: Should I stake via the Giant Pools or an LSD Network specific pool? Which is better?

A: This depends on your individual goals. Giant pools serve as the default liquidity source upheld by the Stakehouse community. So unless there is a specific LSD Network that you want to join, Giant Pools is the ideal option to stake with. On the other hand, if there is a specific LSD Network that you want to stake with (perhaps you know and trust the node operators running the network’s validators), you can choose to stake your ETH in this network. Keep in mind that LSD Networks created by third-parties may have gatekeeping and/or commission structures in place.

Q: What happens to my LP tokens when the validator Rages Quits?

A: As long as the user holds on to their LP tokens, they can be redeemed for ETH or dETH. When a validator Rage Quits, all the LP token holders can claim rewards based on their share and burn the LP tokens.

Q: If I create an LSD Network, do I need to find my own liquidity?

A: If you are facing difficulty getting liquidity directly in your LSD Pools, then you can source liquidity from the Giant Pools. The Giant Pools have ETH from depositors that need an LSD Network. This is an opportunity for any LSD Network which is short of ETH. One of the main stipulations: you must deploy an LSD Network from the LSDN Factory.

Q: How do I create and deploy an LSD Network?

A: There are two ways:

  1. Easy Mode - You can use the Stakehouse LSD Network Deployer to create an LSD Network in 60 seconds without using any code. Check out this video to learn how to do this.

  1. Expert Mode - You can use the Stakehouse Academy SDK to manually deploy an LSD Network. Keep in mind that this method requires a high level of technical knowledge to complete properly.

Q: What is the Stakehouse Account Manager address for LSD Networks Node Operators?

Mainnet Account Manager Address: 0xDd6E67942a9566A70446f7400a21240C5f71377C

Testnet Account Manager Address: 0x952295078a226bf40c8cb076c16e0e7229f77b28

Join the Blockswap Discord for the latest updates, announcements, and community support.

Did this answer your question?