Preferred Node Operators Yield More

Derek
Restaking Cloud Blog
3 min readJan 11, 2024

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Introduction

Restaking Cloud’s K2 protocol is positioned to redefine what the Ethereum ecosystem views as restaking. The community has restaked $600 million in ETH, demonstrating the inclusiveness and ease of use for K2. For node operators, this isn’t just an update; it’s an invitation to step into new opportunities and yield.

Key Takeaways

  • Preferred Node Operators currently have an additional six tiers of yield available to them.
  • Anybody with questions or an interest in becoming a Preferred Node Operator try out the testnet then join the team on Discord.
  • Preferred Node Operators earn 20% of all the rewards from the ETH delegated to them.
  • All validators are compatible including DVT, Eigenlayer, solo stakers, and any other ETH validator.

Native Delegation: The Gateway to Expansion

Native Delegation is the core of Restaking Cloud’s K2 protocol, exemplifying the dedication to inclusivity and making restaking solo staker friendly. It’s a seamless bridge for Ethereum validators — from solo stakers to DVT clusters and Eigenlayer validators — to step into a space where flexibility meets security. Native Delegation upholds the essence of Ethereum by enabling every validator to participate without altering any business logic or asking for any withdrawal credential. Add all validators on a node simultaneously and maintain protected principle within your validator.

Native Delegation in 10 minutes

Preferred Node Operators (PNO)

Ethereum node operators who have an active validator through native delegation in K2 can register to become Preferred Node Operators (PNO). PNOs can offer node operations for hire; They can support middleware or networks with slashable security. As a PNO, the node operator is allowed to receive ETH delegation from any K2 restaker. K2 will manage all node delegations, payouts restakers, and slashing incurred by node operators in real-time.

Preferred Node Operators get 100% of the additional yield they earn for self-delegated restaked ETH. For outside delegations they receive, they earn 20% of the additional rewards distributing 80% back to the ETH restakers who entrusted them.

Steps to Become a Preferred Node Operator

  1. Stress test Native Delegation in testnet by restaking your Goerli validators.
  2. Have at least one validator restaked in mainnet. Goerli tutorial.
  3. Apply to become a PNO.
  4. Run middleware and networks’ software.
  5. Allow K2 to automatically pay you 20% of the rewards for all ETH delegated to you.

Yield Tiers for Preferred Node Operators

This could be a blog post in and of itself, so I’ll keep this brief for now. Preferred Node Operators have many tiers of yield available to them, and this is just the beginning. Below you will see a brief overview of yield available.

Conclusion:

Many exciting things are coming to those who begin participating in Restaking Cloud’s testnet. If you have any questions, or comments, or want to get involved. Please reach out.

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DISCLAIMER: The text above is just a description of how Restaking Cloud works in theory. Any figures mentioned serve only as an illustration. Engaging in any blockchain activities with or without the necessary skills or experience can result in a loss of funds. This is a very experimental tool, so please treat it as such.

Before participating please read the disclaimer here.

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