> Choices are: use custodial staking (share your keys with custodian - risky), use non-custodial staking (keeps your keys private but has costs e.g. Lido charges 10% of your staking rewards), use an L2 coin (risks), use a financial proxy for Etherium (ugggh).
Rocketpool is non-custodial, allows you to run your own node with about 17.6 eth (16 eth + 1.6 eth worth of their token), and then earn a commission from the folks contributing the other 16 eth and not running a node. There is a decent amount of smart contract risk and risk around the value of the token, but it is a generally working protocol.
> I guess running your own node means you can’t use a cold wallet, so security costs/risks are high?
To answer the security concern - The staking keys can only be used for validation activities, and can't be used to spend the funds. When depositing the stake, you can specify a normal ethereum address where withdrawn funds will go to, and that address can be controlled with a hardware or cold paper wallet/signer. The worst an attacker who compromised your node and took your staking keys could do is get you slashed (a little more then a 1 eth penalty in normal circumstances), which would be of no benefit to them.
Rocketpool is non-custodial, allows you to run your own node with about 17.6 eth (16 eth + 1.6 eth worth of their token), and then earn a commission from the folks contributing the other 16 eth and not running a node. There is a decent amount of smart contract risk and risk around the value of the token, but it is a generally working protocol.
> I guess running your own node means you can’t use a cold wallet, so security costs/risks are high?
To answer the security concern - The staking keys can only be used for validation activities, and can't be used to spend the funds. When depositing the stake, you can specify a normal ethereum address where withdrawn funds will go to, and that address can be controlled with a hardware or cold paper wallet/signer. The worst an attacker who compromised your node and took your staking keys could do is get you slashed (a little more then a 1 eth penalty in normal circumstances), which would be of no benefit to them.