Module 4: Validator Keys & Deposits

What this module covers

• Validator keys and credentials
• CSM vs vanilla validators
• Safe key generation practices
• Depositing validators on testnet (high level)

Validator keys & credentials

An Ethereum validator has:

• Validator signing key
• Used to perform validator duties (attest, propose)
• Must be online
• Misuse or duplication can lead to slashing
• Withdrawal credentials
• Define where withdrawals go
• Are set at key generation time
• Cannot be changed later for safety reasons

CSM vs vanilla validators

CSM validators are standard Ethereum validators.

The only difference compared to a vanilla validator is that the withdrawal credentials must be set to Lido’s withdrawal address.

Everything else is identical:

• Same validator duties
• Same EL and CL clients
• Same slashing conditions and risks
• Same operational responsibilities

If withdrawal credentials are set incorrectly, the validator cannot be used for CSM.

Generating validator keys (CSM)

Generating validator keys requires downloading the appropriate tooling and securely creating a new seed phrase.

For CSM validators, the withdrawal credentials must point to Lido’s withdrawal vault at key-generation time.

• For testnet, key generation can be done on your current machine and OS
• For mainnet, an air-gapped setup (e.g. using TailsOS) is strongly recommended

You can see a complete guide here: Generating Validator Keys | Lido Docs

Depositing validators

Depositing a validator:

• Registers it on the consensus layer
• Makes it eligible for activation

Before depositing, ensure:

• EL and CL clients are fully synced
• Validator keys are correctly generated
• Withdrawal credentials point to Lido (for CSM)

Deposits for CSM are done through the CSM widget csm.lido.fi.

Execute this step (CSM – key generation & deposit)

You are now expected to:

1. Generate validator keys following the CSM guide
2. Register (deposit) the validator on testnet

Follow the official instructions here:

🔑 Generating Validator Keys | Lido Docs

Before you can run validators in the Community Staking Module, you need to generate your validator keys. These keys secure 32+ ETH each and are tasked with signing attestations and proposing blocks, so generating them properly and securely is a must.

docs.lido.fi

Before depositing, ensure:

• EL and CL clients are fully synced
• Validator keys are generated correctly
• Withdrawal credentials point to Lido

Validator deposits are irreversible, do not proceed unless all of the above is true.

Read more here

1. Generating validator keys for Lido CSM https://docs.lido.fi/run-on-lido/csm/generating-validator-keys/

End of the module

Before moving on, you should be able to answer: