Step 3: Setting up Validator Keys

Install dependencies, the Ethereum Foundation deposit tool and generate your two sets of key pairs.

Each validator will have two sets of key pairs. A signing key and a withdrawal key. These keys are derived from a single mnemonic phrase. Learn more about keys.

You will also set your ETH Withdrawal Address, preferably from your Ledger or Trezor hardware wallet.

🛑🛑 DO NOT USE AN EXCHANGE ADDRESS AS WITHDRAWAL ADDRESS. 🛑🛑

🛑🛑 Double check your work as this is permanent once set! 🛑🛑

The Withdrawal Address is:

where your ETH is returned upon "voluntary exiting a validator", or also known as full withdrawal.
where you receive partial withdrawals, which is where any excess balance above 32 ETH is periodically scraped and made available for use.

You have the choice of using the Wagyu GUI, downloading the pre-built Ethereum staking deposit tool or building it from source.

Install dependencies.

sudo apt update
sudo apt install python3-pip git -y

Download source code and install.

cd $HOME
git clone https://github.com/ethereum/staking-deposit-cli
cd staking-deposit-cli
sudo ./deposit.sh install

Make a new mnemonic and replace <ETH_ADDRESS_FROM_IDEALLY_HARDWARE_WALLET> with your ethereum withdrawal address, ideally from a Trezor, Ledger or comparable hardware wallet.

🛑🛑 DO NOT USE AN EXCHANGE ADDRESS AS WITHDRAWAL ADDRESS. 🛑🛑

🛑🛑 Double check your work as this is permanent once set! 🛑 🛑

./deposit.sh new-mnemonic --chain mainnet --eth1_withdrawal_address <ETH_ADDRESS_FROM_IDEALLY_HARDWARE_WALLET>

Download staking-deposit-cli

cd $HOME
wget https://github.com/ethereum/staking-deposit-cli/releases/download/v2.5.0/staking_deposit-cli-d7b5304-linux-amd64.tar.gz

Verify the SHA256 Checksum matches the checksum on the releases page.

echo "3f51859d78ad47a3e258470f5a5caf03d19ed1d4307d517325b7bb8f6fcde6ef *staking_deposit-cli-d7b5304-linux-amd64.tar.gz" | shasum -a 256 --check

Example valid output:

staking_deposit-cli-d7b5304-linux-amd64.tar.gz: OK

Only proceed if the sha256 check passes with OK!

Extract the archive.

tar -xvf staking_deposit-cli-d7b5304-linux-amd64.tar.gz
mv staking_deposit-cli-d7b5304-linux-amd64 staking-deposit-cli
rm staking_deposit-cli-d7b5304-linux-amd64.tar.gz
cd staking-deposit-cli

Make a new mnemonic and replace <ETH_ADDRESS_FROM_IDEALLY_HARDWARE_WALLET> with your ethereum withdrawal address, ideally from a Trezor, Ledger or comparable hardware wallet.

🛑🛑 DO NOT USE AN EXCHANGE ADDRESS AS WITHDRAWAL ADDRESS. 🛑🛑

🛑🛑Double check your work as this is permanent once set! 🛑🛑

./deposit new-mnemonic --chain mainnet --eth1_withdrawal_address <ETH_ADDRESS_FROM_IDEALLY_HARDWARE_WALLET>

Wagyu (formerly known as StakeHouse) is an application aimed at lowering the technical bar to staking on Ethereum 2.0.

Dubbed a 'one-click installer', it provides a clean UI automating the setup and management of all the infrastructure necessary to stake without the user needing to have any technical knowledge.

🛑🛑DO NOT USE AN EXCHANGE ADDRESS AS WITHDRAWAL ADDRESS🛑🛑

🛑🛑 Double check your work as this is permanent once set! 🛑🛑

Download Wagyu: https://wagyu.gg

Github: https://github.com/stake-house/wagyu-installer

After creating the validator keys locally, you'll want to copy these validator keys via USB key or rsync file transfer to your staking node.

To align with this guide's steps, first make a default path to store your validator keys

mkdir -p $HOME/staking-deposit-cli/validator_keys

If using USB key, mount the key then copy.

cp <directory-with-keys>/*.json $HOME/staking-deposit-cli/validator_keys

If using rsync, copy your validator keys from your local computer to your staking node with the following command. Change ssh port if needed.

rsync -a "ssh -p 22" <directory-with-keys>/*.json <username>@<remote_host>:/home/<username>/staking-deposit-cli/validator_keys

🔥 Pro Security Tip: Run the staking_deposit-cli tool and generate your mnemonic seed for your validator keys on an air-gapped offline machine booted from usb.

You will learn how to boot up a windows PC into an airgapped Tails operating system.

The Tails OS is an amnesic operating system, meaning it will save nothing and leave no tracks behind each time you boot it.

Part 0 - Prerequisites

You need:

2 storage mediums (can be USB stick, SD cards or external hard drives)
One of them must be > 8GB
Windows or Mac computer
30 minutes or longer depending on your download speed

Part 1 - Download Tails OS

Download the official image from the Tails website. Might take a while, go grab a coffee.

Make sure you follow the guide on the Tails website to verify your download of Tails.

Part 2 - Download and install the software to transfer your Tails image on your USB stick

For Windows, use one of

For Mac, download Etcher

Part 3 - Making your bootable USB stick

Run the above software. This is an example how it looks like on Mac OS with etcher, but other software should be similar.

Select the Tails OS image that you downloaded as the image. Then select the USB stick (the larger one).

Then flash the image to the larger USB stick.

Part 4 - Download and verify the staking-deposit-cli

You can refer to the other tab on this guide on how to download and verify the staking-deposit-cli.

Copy the file to the other USB stick.

Part 5 - Reboot your computer and into Tails OS

After you have done all the above, you can reboot. If you are connected by a LAN cable to the internet, you can disconnect it manually.

Plug in the USB stick that has your Tails OS.

On Mac, press and hold the Option key immediately upon hearing the startup chime. Release the key after Startup Manager appears.

On Windows, it depends on your computer manufacturer. Usually it is by pressing F1 or F12. If it doesn't work, try googling "Enter boot options menu on [Insert your PC brand]"

Choose the USB stick that you loaded up with Tails OS to boot into Tails.

Part 6 - Welcome to Tails OS

You can boot with all the default settings.

Part 7 - Run the staking-deposit-cli

Plug in your other USB stick with the staking-deposit-cli file.

Copy the deposit file to your home directory.

Add execute permissions

chmod +x deposit

Make a new mnemonic and replace <ETH_ADDRESS_FROM_IDEALLY_HARDWARE_WALLET> with your ethereum withdrawal address, ideally from a Trezor, Ledger or comparable hardware wallet.

🛑🛑DO NOT USE AN EXCHANGE ADDRESS AS WITHDRAWAL ADDRESS. 🛑🛑

🛑🛑 Double check your work as this is permanent once set! 🛑🛑

./deposit new-mnemonic --chain mainnet --eth1_withdrawal_address <ETH_ADDRESS_FROM_IDEALLY_HARDWARE_WALLET>

The Withdrawal Address is where your ETH is returned upon "voluntary exiting a validator", or also known as full withdrawal. This address also receives partial withdrawals, which is where any excess balance above 32 ETH is periodically scraped and made available for use.

If you ran this command directly from your non-Tails USB stick, the validator keys should stay on it. If it hasn't, copy the directory over to your non-Tails USB stick.

🔥 Make sure you have saved your validator keys directory in your other USB stick (non Tails OS) before you shutdown Tails. Tails will delete everything saved on it after you shutdown..

🎉 Congrats on learning how to use Tails OS to make an air gapped system. As a bonus, you can reboot into Tails OS again and connect to internet to surf the dark web or clear net safely!

Alternatively, follow this ethstaker.cc exclusive for the low down on making a bootable usb.

Part 1 - Create a Ubuntu 20.04 USB Bootable Drive

Video link: https://www.youtube.com/watch?v=DTR3PzRRtYU

Part 2 - Install Ubuntu 20.04 from the USB Drive

Video link: https://www.youtube.com/watch?v=C97_6MrufCE

You can copy via USB key the pre-built staking-deposit-cli binaries from an online machine to an air-gapped offline machine booted from usb. Make sure to disconnect the ethernet cable and/or WIFI.

2. If using staking-deposit-cli, follow the prompts and pick a KEYSTORE password. This password encrypts your keystore files. Write down your mnemonic and keep this safe and offline.

Caution: Only deposit the 32 ETH per validator if you are confident your execution client and consensus client will be fully synched and ready to perform validator duties. You can return later to launchpad with your deposit-data to finish the next steps.

3. Follow the steps at https://launchpad.ethereum.org/ while skipping over the steps you already just completed. Study the eth2 phase 0 overview material. Understanding eth staking is the key to success!

🐳 Batch Depositing Tip: If you have many deposits to make for many validators, consider using Abyss.finance's eth2depositor tool. This greatly improves the deposit experience as multiple deposits can be batched into one transaction, thereby saving gas fees and saving your fingers by minimizing Metamask clicking.

Source: https://twitter.com/AbyssFinance/status/1379732382044069888

4. Back on the launchpad website, upload yourdeposit_data-#########.json found in the validator_keys directory.

5. Connect to the launchpad with your Metamask wallet, review and accept terms

6. Confirm the transaction(s). There's one deposit transaction of 32 ETH for each validator.

For instance, if you want to run 3 validators you will need to have (32 x 3) = 96 ETH plus some extra to cover the gas fees.

Tip for Ledger Nano Hardware wallet users: If you encounter difficulty making the deposit transaction, enable blind signing and contract data.

Your transaction is sending and depositing your ETH to the official ETH2 deposit contract address.

Check, double-check, triple-check that the official Eth2 deposit contract address is correct.0x00000000219ab540356cBB839Cbe05303d7705Fa

Critical Crypto Reminder: Keep your mnemonic, keep your ETH.

Write down your mnemonic seed offline. Not email. Not cloud.
Multiple copies are better. Best stored in a metal seed.
Make offline backups, such as to a USB key, of your validator_keys directory.

PreviousStep 2: Configuring Node NextStep 4: Installing execution client