New ETH Staking Product: How the Pectra Upgrade Changes Ethereum Staking

Following the Ethereum Pectra upgrade, Bitcoin Suisse is launching a new ETH staking product with strong improvements to how Ethereum staking works: from auto-compounding staking rewards and lower slashing risk to a modernized infrastructure built on distributed validator technology. The new product represents the latest chapter in a commitment to the Ethereum ecosystem that goes back to the crowd sale in 2014 and the launch of one of the first institutional staking services in 2017.

The Pectra upgrade (the Pectra hard fork, live on the Ethereum mainnet since 7 May 2025) introduces three protocol-level changes to how ETH staking works: consensus-layer rewards now compound automatically on the validator, the initial slashing penalty is reduced by a factor of 128, and validators can hold any amount above 32 ETH rather than being restricted to fixed 32 ETH increments. Bitcoin Suisse pairs these changes with a new infrastructure built on Obol's distributed validator technology (DVT). 

Here is what each of these changes means in practice: 

• Compounding rewards. With the Pectra upgrade, consensus-layer rewards now compound automatically as they accrue directly on the validator. This means staking rewards begin earning additional rewards as soon as they are created by the protocol.
• Lower slashing risk. The Pectra upgrade reduces the initial slashing penalty by a factor of 128 compared to the pre-Pectra standard. For a 1,500 ETH validator, the initial penalty amounts to approximately 0.02% of staked funds — down from approximately 3% under the previous model. Slashing risk is further reduced through the use of Obol's DVT infrastructure, which distributes validator operations across multiple independent nodes.
• Greater flexibility. Staking is no longer restricted to fixed 32 ETH increments. Any amount above 32 ETH can be staked, and subsequent top-ups are possible starting from 1 ETH. Each staking account also receives a dedicated, segregated withdrawal address, aligned with evolving regulatory guidance.
• Improved uptime. The new DVT infrastructure splits each validator across several nodes. If one node experiences downtime, the remaining nodes continue operating, which reduces the risk of missed attestations and improving overall validator performance.
• Modernized infrastructure. The new product runs on Obol, replacing the previous staking infrastructure that has been in place since 2020. The upgrade delivers both improved resilience and a more efficient operational footprint.

ETH staking rewards are split into two types, each handled differently in the new Pectra product. Consensus-layer rewards are now paid to the staking account as they compound automatically on the validator. Execution-layer rewards continue to be averaged across all validators and paid to the trading account. This structure has direct implications for ETH staking yield. 

Consensus-layer (CL) rewards — earned through attestation, block proposals, and sync committee duties — now accrue directly on the validator and therefore compound automatically. They are now paid to the staking account opposed to the legacy product, where they are paid to the trading account. Because each staking account has its own dedicated validators, CL rewards are no longer averaged across all clients. Most regular payouts stem from attestation activity, with larger, less frequent payouts occurring when the validator proposes a block (typically once or twice per year per validator). 

Execution-layer (EL) rewards — earned from transaction fees and MEV — continue to be averaged across all validators and paid out to the trading account, as before. Averaging remains appropriate for EL rewards because MEV-driven payouts can vary significantly between validators. 

As the Ethereum protocol continues to evolve, Bitcoin Suisse remains close to the ecosystem, working with technologies like Obol's DVT infrastructure and adapting its staking products to reflect the latest protocol developments. The new Pectra staking product is the latest step in that ongoing commitment.

How does Ethereum staking work after the Pectra upgrade?  
The Pectra upgrade changes several aspects of how Ethereum staking works. Validators can now hold up to 2,048 ETH (up from a fixed 32 ETH), consensus-layer rewards compound automatically on the validator, and the initial slashing penalty has been reduced by a factor of 128. At Bitcoin Suisse, these protocol changes are paired with a new DVT-based infrastructure for additional resilience. 

Do rewards from ETH staking compound?  
Yes. With the new Pectra product, consensus-layer  rewards compound automatically. Consensus-layer rewards accrue directly on the validator and increase its effective balance. 

How are ETH staking rewards paid?  
Consensus-layer rewards (from attestation, block proposals, and sync committee duties) accrue directly on the validator, compound automatically and are paid to the staking account. Execution-layer rewards (from transaction fees and MEV) are averaged across all validators and paid out to the trading account. 

What are the minimum staking requirements?  
The minimum staking account balance is 32 ETH, which is the amount needed to operate a single validator. For subsequent entries or exits, the minimum order amount is 1 ETH. 

What happens to existing validators during the migration?  
The consolidation process moves funds from legacy validators to the new validators without requiring a full unstake-and-restake cycle.  

Is there a maximum validator size?  
The Ethereum protocol allows validators with an effective balance of up to 2,048 ETH. Bitcoin Suisse sets an internal threshold to leave room for consensus-layer rewards to compound. 

What is distributed validator technology (DVT)?  
DVT splits a single validator's operations across multiple independent nodes. This means no single point of failure, so if one node goes offline, the others continue validating. The result is improved uptime and an additional layer of slashing protection.