Running an Ethereum validator might seem daunting and highly expensive, but with Dappnode and the Lido Community Staking Module (CSM), the process has become significantly more accessible, even for non-technical users. In this post, we’ll cover the highlights of a recent workshop hosted by Dappnode in collaboration with the Lido Community Lifeguards. This guide walks you through setting up a validator, using Dappnode's user-friendly interface and tools.

Why Use Dappnode for Staking?

Dappnode simplifies running Ethereum nodes, offering a seamless setup for validators. It supports multiple access methods, including local Wi-Fi and VPN, making it versatile for home or remote setups. By using Dappnode's intuitive dashboard, you can manage execution and consensus clients, keystores, and even advanced features like MEV Boost.

Setting up your validator step by step

This guide will walk you through the process step by step. By the end, you'll have a fully operational validator, empowering you to actively participate in Ethereum staking with ease. 

Step 1: Setting Up Your Dappnode

1. Local Access via Wi-Fi:

• Connect to the “Dappnode Wi-Fi” network (default password: dappnode).
• Navigate to http://my.dappnode. If you encounter issues, restart your computer to refresh the DNS mapping.

2. Remote Access with VPN:

• Generate a VPN profile through the Dappnode dashboard. This option is perfect for monitoring your validator remotely.

Step 2: Preparing for Validator Setup

To participate in the Ethereum network, you need:

• Execution and Consensus Clients: Choose one client of each type (e.g., Nethermind for execution and Lighthouse for consensus).
• Web3Signer (Staking Brain): This handles your validator keystores and ensures smooth integration with the Lido protocol.

Install these components through the Dappnode dashboard and allow time for synchronization:

• Consensus Client Sync: Takes a few minutes.
• Execution Client Sync: May take hours, depending on your client and machine specs.

Step 3: Installing the Lido CSM Package

Once your node is synchronized, install the Lido CSM package via the DAppStore. This package supports both the Holesky testnet and Ethereum mainnet, so ensure you select the correct version for your setup.

The CSM package provides a step-by-step guide through its built-in UI:

1. Confirm you have enough ETH or testnet HolETH for the bond deposit.
2. Validate your node setup and keystore integration.
3. Configure notifications to minimize downtime risks.

Step 4: Generating Validator Keys

For security, generate validator keys offline using a tool called Wagyu Keygen:

• Boot into a secure environment (e.g., Tails OS) to minimize exposure risk.
• Create or reuse a seed phrase to generate validator keys. A single seed phrase can produce multiple keys.
• Set up as withdrawal address the Lido Staking Router. Make sure you use the correct addresses, otherwise the Lido CSM Dashboard won’t let you move forward:
• Mainnet: 0xb9d7934878b5fb9610b3fe8a5e441e8fad7e293f
• Holesky: 0xF0179dEC45a37423EAD4FaD5fCb136197872EAd9

Store your deposit data and keystore files securely. These files will be used for staking deposits and validator setup.

Step 5: Submitting Your Validator Deposit

1. Upload Deposit Data: Ensure the withdrawal address matches the Lido Staking Router’s.
2. Import Keystore to Web3Signer: Use the Lido CSM package or the Staking Brain UI. Verify that you use the correct Staking Protocol label: Lido.
3. Bond Deposit: Submit the bond for your Lido CSM validators.

Once the beacon chain processes your deposit (16–24 hours), your validator will enter the activation queue. This may incur additional delays, depending on the current status of the Lido CSM and beacon chain, but you can always check Validator Queue for more info.

FAQs from the Workshop

Q: How much ETH is required to start?

• Early adopters need only 1.5 ETH for the first validator and 1.3 ETH for subsequent ones. If you’re not on the early adopter list, your first validator will be 2.4 ETH, then 1.3 ETH for subsequent ones as well.

Q: Can I add more validators later?

• Yes, you can generate and upload additional keys through the same process, provided you meet the bond requirements.

Don’t Have a Dappnode Yet?

If you’re eager to get started with staking but don’t have a Dappnode device yet, we’ve got you covered! Explore the Dappnode Home x Lido to kickstart your journey today! This all-in-one solution offers an easy setup, robust performance, and compatibility with the Lido CSM, making it perfect for both beginners and experienced stakers. 

Conclusion

Setting up a validator using Lido CSM and Dappnode is a straightforward process designed for both technical and non-technical users. With reduced entry requirements, boosted rewards, and intuitive tools, staking on Ethereum has never been easier. Explore more in the Dappnode documentation and join the Lido Community Staking Module today!