Context

Relevancy: Pooled Staking Users Only (ETH on Ledger Live, and several other wallets)

Who: Users may notice a temporary decrease in their ETH staking rewards, particularly since early September. This reduction in rewards might raise concerns about technical issues or changes in the staking protocol.

Timeline: This will apply approximately only for a few weeks (up until middle of December).

Answer

The decrease in ETH staking rewards is due to a temporary situation following a security incident that required precautionary measures. Here's what happened and what to expect:

1. In early September, Kiln experienced a security incident that required the precautionary exit of all ETH validators

2. This exit process has resulted in lower than usual APY

3. The situation is temporary, and Kiln is actively working on spinning up new validators

4. Rewards will gradually recover and return to normal levels as new validators come online

Important notes:

• This situation is not related to any malicious or scam activity

• The smart contracts remain unaffected

• The recovery process is already underway

Source: Kiln Security Incident Announcement