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FAQs

1. Are there any commissions in the LSD network?

LSD Network deployer can set the commission parameters for node runner revenue. It can be queried any time from the Wizard SDK so that a node runner is happy to accept the commission before staking their 4 ETH. Commissions can be disabled by setting it to 0%.

2. Is there any staking limit?

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 Fees and MEV pool), 4(by node operator) and 24 (from Protected Staking pool).

3. How much ETH do I need to deploy my own LSD network?

The LSD network does not require any ETH apart from the gas fees for deploying smart contracts.

4. Can I become a node operator with less than 4 ETH?

Yes. A group of users can pool their ETH to run a validator. This feature is not default in the LSD Network, but users are free to do so.

5. Does the DAO or the LSD network owner have direct access to the funds in the pool?

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.

6. Am I allowed to leave the LSD network?

Every user has a right to leave the LSD network anytime. A depositor/staker can simply sell their LP tokens to someone else or burn 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operator can withdraw their ETH (as long as it’s associated BLS public key is not staked), once a node operator has withdrawn the ETH the LSD network will quarantine the BLS public key associated to that specific deposit for any further deposit via LSD network. Also depositors who bought LP token 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 for Rage Quit.

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

The Ethereum consensus layer has a dynamic queue for validators activation, if your validator status is active, do check derivatives for that validators has been minted to reflect the earning on LP tokens.

8. Should I stake via Giant pools or the LSD pool directly? Which is better?

Both the pools will be used for staking and the user will receive LP tokens upon depositing in both the cases. If a LSD pool falls short of ETH, Giant Pools can provide the fund. LSD pools will ask depositors which BLS public key they want to stake with whereas the Giant pool does not.

Please verify the address of the pool before depositing ETH.

9. Can I restrict my LSD network to run only certified/trusted validators?

Yes, if you deployed the LSD Network and you have the rights. DAOs or the LSD deployers can set whitelisting to true, this will make sure that only the addresses provided by the DAOs or the LSD deployer can become node operators. They also have authority to remove particular addresses from whitelist status. Additionally, Gatekeeping can be activated to prevent KNOTs from outside of the LSD network from joining the house created by the LSD.

10. What happens to my LP tokens when the validator Rage Quits?

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

11. If I create an LSD Network, do I need to find my own liquidity?

If you are facing difficulty getting liquidity directly in your LSD pools, then you can allow the Giant Pools for sourcing liquidity. The Giant Pools have ETH from depositors that need an LSD Network to get staked and hence, it’s 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.

12. I'm a developer, where do I get started?

LSD Wizard SDK is the answer. The SDK allows you to deploy your very own LSD and interact with existing LSD Networks and Giant pools.