Step 8: Deposit ETH and SD
ETH Deposit
Run the below mentioned command to deposit ETH bond and add validators to your node: ~/bin/stader-cli validator deposit --num-validators <number of validators you wish to add>
Please ensure to replace the placeholder <number of validators you wish to add> with the number of validators you want to add to your node by depositing the ETH bond.
SD Deposit
The SD token plays a vital role in the Stader platform, serving as the governance token. It allows the Stader community to actively participate in shaping the platform's direction. Therefore, to add a validator to the nodes on the Stader Network, permissionless node operators are required to bond SD collateral for each validator. In return, the node operators receive SD rewards for their bonded SD collateral.
The minimum deposit requirement is 0.4ETH worth of SD per validator, while the maximum allowed deposit is 8ETH worth of SD per validator. The exact value will vary dynamically based on the current price of ETH and SD.
If you have deposited SD earlier and there is enough SD bond in the SD collateral contract to create the number of validators you have specified, then your validator will be created directly.
If you have not deposited SD earlier then the CLI will give you two choices for SD collateral deposit
Set spend approval limit for SD deposit
SD Spend approval Limit allows users to set the allowance value in the ETHx Smart Contract for SD token spending, ensuring your control over your assets. It enables users to define a maximum amount of tokens that can be deposited without requiring re-authorization.
If you don't set the SD approval limit, you will have to provide approval every time you deposit SD tokens.
To set the SD approval limit, please execute the following command:
~/bin/stader-cli node approve-sd --amount <SD Amount>Please ensure to replace
<SD Amount>with the desired amount of SD for spending approval.
Important Note
SD collateral snapshots are taken daily at a random block. Therefore, due to price fluctuations if the SD collateral bond value for your validators drops below 0.4 ETH worth of SD per validator, then the node operators need to top-up the SD collateral else they won't receive SD rewards on their bonded SD for that day.
We recommend maintaining an SD collateral buffer (above the 0.4 ETH worth of SD per validator limit) to avoid any reward loss due to price fluctuations.
You can deposit more than 8ETH worth of SD per validator as collateral, but any SD collateral exceeding the 8 ETH limit per validator will not earn SD rewards.
For SD collateral withdrawal, the node operators can withdraw any collateral exceeding the 200% SD collateral limit (8 ETH worth of SD per validator). To withdraw the entire SD collateral, the node operator will need to exit the validators.
SD token address
SD token address (Mainnet) : 0x30D20208d987713f46DFD34EF128Bb16C404D10f
SD token address (Testnet): 0xB0FBfc4d8251a969D6Bd2d9C1CF95feE1689fd01
Testnet SD tokens: To receive the Testnet SD tokens for deposit, please visit our Discord ETHx channel and share your Operator Address with our moderators.
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