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SD Repayment

ETHx node operators can repay their utilized SD via a simple CLI command. Node operators should make timely repayments of their utilized SD and ensure that the Health Factors remain above 1. If the Health Factor for a node falls below 1, the node will be liquidated, and all validators will be exited from the node to recover the utilized SD.

Repay SD from node operator wallet​

Node operators can execute the re-payment command to repay their utilized SD. They have the option to make a full repayment or a partial re-payment to reduce their utilization position.

Below are the steps to repay SD to the Utility Pool and close or reduce the Utilization Position:

  1. Execute the following command on the CLI: (~/bin/stader-cli node repay-sd)
  2. You will be prompted to choose between doing a full repayment or repaying a custom amount.
  3. Select the preferred repayment option and provide confirmation.
  4. Once the repayment transaction is successful, you will see a confirmation message indicating the amount of SD repaid and the current Utilization Position

Repay using excess SD collateral​

If the SD collateral bond for a node operator is more than 200% (8 ETH worth of SD per validator), then the excess SD can be withdrawn. In case a node operator has utilized SD from the Utility Pool for SD bonding, this excess SD can be used for repayment. Below are the steps to repay SD to the Utility Pool and close or reduce the Utilization Position with excess SD collateral:

  1. Execute the following command on the CLI: (stader-cli node withdraw-sd-collateral --amount <amount>)
  2. The Stader node will check for an existing utilization position and inform you with a prompt based on the amount you are trying to withdraw.
    • If the amount you are trying to withdraw is less than the utilization position, then the Stader node will inform you that you have an existing Utilization Position, and the excess SD collateral you are trying to withdraw will be used to repay the utilized SD.
    • If the amount you are trying to withdraw is greater than the utilization position, then the Stader node will inform you that you have an existing Utilization Position, and the excess SD collateral you are trying to withdraw will be used to repay the utilized SD. The remaining SD will be sent to your Reward Address.
  3. Provide confirmation.
  4. Once the repayment transaction is successful, you will see a confirmation message indicating the amount of SD repaid and the current Utilization Position.