What is Staking-as-a-Service?

tl;dr

• Staking as a Service (SaaS) allows ETH holders to earn rewards without running their own validator nodes by delegating operations to professional providers.
  
  
• Users generate validator and withdrawal keys—providers only get access to signing keys, while users retain full custody of their funds.
  
  
• SaaS options include non-custodial (users keep control of assets) and custodial (typically via exchanges, where users deposit ETH and give up control).
  
  
• Compared to solo staking, SaaS lowers the barrier to entry, reduces operational complexity, but introduces some counterparty risk and service fees.

An Introduction to Staking as a Service

The Ethereum Merge was executed successfully on September 15, 2022, marking its transition from Proof-of-Work to Proof-of-Stake and replacing mining with staking. Even before the Merge, developers began exploring ways to stake ETH on the Beacon Chain. 

This led to the rise of new staking models, including liquid staking and, notably, staking as a service (SaaS).

What is Staking as a Service?

SaaS allows users to delegate their crypto assets to professional validators who handle the technical requirements of staking on their behalf. The model benefits users who want to earn staking rewards without running a validator node or managing infrastructure. SaaS providers manage keys, uptime, and penalties, often charging a small commission in return.

How does Staking as a Service Work?

SaaS is a streamlined way for users to participate in Ethereum staking without managing their own validator nodes.

Users begin by generating two key types: validator keys and withdrawal keys. The validator (signing) keys are shared with the service provider and used for day-to-day operations like block proposals and attestations. Withdrawal keys remain fully under the user’s control, giving them custody over their staked ETH and rewards, unlike liquid staking platforms. This makes SaaS a self-custodial approach.

To get started, users deposit 32 ETH, upload their signing keys to the provider, and let the provider handle the infrastructure. There’s no need to worry about uptime, maintenance, or slashing protection, as that’s managed by the service.

Fees vary by provider and can be fixed, percentage-based, or subscription models. Risks include slashing penalties and trusting a third-party provider, but with proper due diligence and secure key management, SaaS offers a powerful, low-effort staking solution.

What are the Types of Staking as a Service

Whether you value control or convenience, Ethereum’s SaaS options offer flexible paths to earning rewards. Choose the right model that fits your comfort level with risk and custody.

Non-Custodial Staking as a Service

In this model, users keep full control of their assets and withdrawal keys, while the SaaS provider runs the validator infrastructure. It offers strong security and aligns with Ethereum’s ethos of decentralization. However, users are responsible for generating and securely storing their own keys. This option suits users who want more control without running their own hardware.

Popular providers include: Figment, Kiln, Stakefish, Bloxstaking

Custodial Staking as a Service

Custodial SaaS is typically offered by centralized exchanges. Users deposit ETH directly, and the provider handles everything—from key management to validator operations. This model is beginner-friendly but comes with a higher risk, as users relinquish control of their funds.

Popular providers include: Coinbase, Kraken, Binance

Staking Comparison: Solo vs. Staking as a Service

Solo Staking involves running your own validator node, requiring significant technical expertise, substantial capital (e.g., 32 ETH for Ethereum), and dedicated hardware with 24/7 uptime. While it offers maximum control and direct receipt of all rewards, it also carries higher operational complexity and risks. Risks include slashing if the node performs maliciously or goes offline.

Staking as a Service simplifies this by allowing users to delegate the technical aspects to a third-party provider. This method requires less technical knowledge and often a lower capital commitment, making staking more accessible. However, it introduces counterparty risk and typically involves service fees, reducing the overall rewards.

Why Should You Consider Staking as a Service?

SaaS offers a simple, secure way to earn Ethereum staking rewards without managing your own validator hardware. It’s ideal for users with 32 ETH who want to participate in network consensus but lack the time, expertise, or desire to run a node. With SaaS, the provider handles all technical operations while you retain control of your withdrawal keys in non-custodial setups.

Pros and Cons of SaaS

SaaS offers a convenient way to earn ETH rewards without running your own validator. Pros include simplified setup, professional node management, and non-custodial options that let you retain control over withdrawal keys. It’s ideal for users who want to stake 32 ETH securely with minimal effort. 

However, cons include reliance on third-party providers, potential downtime or slashing penalties if the provider performs poorly, and varying fee structures that may reduce net rewards. While safer than full custodial staking, SaaS still involves some trust in the provider’s infrastructure and uptime guarantees.

FAQs

What are the fees for staking-as-a-service?

Fees vary by provider. Some charge a fixed monthly fee (e.g., $5/month), while others take a percentage of rewards (typically 5–10%, including MEV and tips). A few use subscription models with 0% fees on ETH rewards.

Is staking as a service risky? 

Yes, but less so than custodial options. Risks include provider downtime, technical errors, or slashing. However, if you retain control of your withdrawal keys, you reduce custody risk significantly.

Can I withdraw my rewards?

Yes. With Ethereum’s withdrawals enabled post-Shanghai upgrade, rewards and staked ETH can be withdrawn. You must control your withdrawal key to initiate this.

Is it possible to get slashed in staking as a service? 

Yes. Slashing can occur due to validator misbehavior (e.g., double signing). Reputable SaaS providers often implement slashing protection to reduce this risk.