A detailed guide on preparing all the validation tools for CSM can be found <a href="https://dvt-homestaker.stakesaurus.com/bonded-validators-setup/lido-csm" target="_blank" rel="nofollow noopener">here</a>.
A shorter flow of setting up a CSM validator for testnet looks as follows:
<ol>
<li><a href="https://dvt-homestaker.stakesaurus.com/keystore-generation-and-mev-boost/validator-key-generation" target="_blank" rel="nofollow noopener">Generate new validator keys</a> setting the <code>withdrawal_address</code> to the <a href="https://holesky.etherscan.io/address/0xF0179dEC45a37423EAD4FaD5fCb136197872EAd9" target="_blank" rel="nofollow noopener">Lido Withdrawal Vault</a> on Holesky: <a href="https://holesky.etherscan.io/address/0xF0179dEC45a37423EAD4FaD5fCb136197872EAd9" target="_blank" rel="nofollow noopener"><code>0xF0179dEC45a37423EAD4FaD5fCb136197872EAd9</code></a> and specify the deposit amount of 32 ETH (do NOT make a deposit)</li>
<li><a href="https://dvt-homestaker.stakesaurus.com/native-solo-staking-setup/validator-client-setup" target="_blank" rel="nofollow noopener">Configure your validator client</a> (and/or beacon node) setting the <code>fee_recipient</code> flag to the designated fee recipient address (Lido Execution Layer Rewards Vault) on Holesky: <a href="https://holesky.etherscan.io/address/0xE73a3602b99f1f913e72F8bdcBC235e206794Ac8" target="_blank" rel="nofollow noopener"><code>0xE73a3602b99f1f913e72F8bdcBC235e206794Ac8</code></a> and import the newly generated CSM keystores</li>
<li><a href="https://dvt-homestaker.stakesaurus.com/keystore-generation-and-mev-boost/set-up-and-configure-mev-boost" target="_blank" rel="nofollow noopener">Configure your MEV-Boost service</a>. Do not set the <code>min-bid</code> flag (or set 0) and set the <code>relay</code> flags only to <a href="https://www.notion.so/6d369eb33f664487800b0dedfe32171e?pvs=21" target="_blank" rel="nofollow noopener">the list of designated MEV relays for Lido CSM on Holesky</a></li>
<li><a href="https://dvt-homestaker.stakesaurus.com/bonded-validators-setup/lido-csm/upload-remove-view-validator-keys" target="_blank" rel="nofollow noopener">Upload the newly generated deposit data</a> file pertaining to your CSM keystores onto <a href="https://csm.testnet.fi/" target="_blank" rel="nofollow noopener">the Lido CSM Widget</a> and provide the required bond amount in Holesky ETH/stETH/wstETH. Before uploading, make sure that nodes are synced, running, and ready for the validator activation.</li>
<li>Wait for your CSM validator keys to be deposited through the protocol and make sure your node remains online in the meantime!</li>
</ol>

How to set up a validator for CSM testnet?

Submitting a bond serves as a risk mitigation measure for both the Ethereum network and the Lido protocol.
There are several major reasons for a CSM Node Operator's bond to be penalized, including:
<ul>
<li>The validator has been slashed. In this case, the initial (minimal) slashing penalty is confiscated. <code>Penalty amount</code> = <code>1 ETH (EFFECTIVE_BALANCE / 32)</code>;</li>
<li>The operator has stolen EL rewards (MEV). <code>Penalty amount</code> = <code>amount stolen</code> + <code>fixed stealing fine</code>;</li>
<li>The validator's withdrawal balance is less than 32 ETH. <code>Penalty amount</code> = <code>32</code> - <code>validator's withdrawal balance.</code></li>
</ul>

Why upload a bond?

The initial bond requirement for the first validator for the testnet is 2 stETH. However, for <a href="https://operatorportal.lido.fi/modules/community-staking-module#block-ef60a1fa96ae4c7995dd7794de2a3e22" target="_blank" rel="nofollow noopener">Early Adopters</a>, this amount is reduced to 1.5 stETH to incentivize early participation.
Subsequent bond amounts depend on the total number of validators operated by the node operator and follow a specific function known as the “<a href="https://operatorportal.lido.fi/modules/community-staking-module#block-2d1c307d95fc4f8ab7c32b7584f795cf" target="_blank" rel="nofollow noopener">bond curve</a>”, which adjusts the bond requirement based on the operator's validator count.
For the testnet, the values for the bond curve are the following:
<img src="/assets/curve-common.png" alt="curve.png">

How much bond is needed?

The initial bond requirement for the first validator for the testnet is 2 stETH. However, for <a href="https://operatorportal.lido.fi/modules/community-staking-module#block-ef60a1fa96ae4c7995dd7794de2a3e22" target="_blank" rel="nofollow noopener">Early Adopters</a>, this amount is reduced to 1.5 stETH to incentivize early participation.
Subsequent bond amounts depend on the total number of validators operated by the node operator and follow a specific function known as the “<a href="https://operatorportal.lido.fi/modules/community-staking-module#block-2d1c307d95fc4f8ab7c32b7584f795cf" target="_blank" rel="nofollow noopener">bond curve</a>”, which adjusts the bond requirement based on the operator's validator count.
For the testnet, the values for the bond curve are the following:
<img src="/assets/curve-ea.png" alt="curve.png">

<a href="https://operatorportal.lido.fi/modules/community-staking-module#block-2d1c307d95fc4f8ab7c32b7584f795cf" target="_blank" rel="nofollow noopener">The bond curve</a> is a function that determines the amount of bond required for each subsequent validator operated by the node operator. For <a href="https://operatorportal.lido.fi/modules/community-staking-module#block-ef60a1fa96ae4c7995dd7794de2a3e22" target="_blank" rel="nofollow noopener">Early Adopters</a>, a unique bond curve function is applied to incentivize early participation.
For the testnet, the values for the bond curve are the following:
<img src="/assets/curve-common.png" alt="curve.png">

What is the bond curve?

<a href="https://operatorportal.lido.fi/modules/community-staking-module#block-2d1c307d95fc4f8ab7c32b7584f795cf" target="_blank" rel="nofollow noopener">The bond curve</a> is a function that determines the amount of bond required for each subsequent validator operated by the node operator. For <a href="https://operatorportal.lido.fi/modules/community-staking-module#block-ef60a1fa96ae4c7995dd7794de2a3e22" target="_blank" rel="nofollow noopener">Early Adopters</a>, a unique bond curve function is applied to incentivize early participation.
For the testnet, the values for the bond curve are the following:
<img src="/assets/curve-ea.png" alt="curve.png">

Bonds are stored in the form of stETH to so that participation as a Node Operator is more capital efficient than if the bond were un-staked (or could only be staked if sufficient deposits to fill the submitted validators were present). While node operators can submit bond in ETH, stETH, or wstETH, any token other than stETH is converted to stETH for consistency in bond format.

Difference between bond types (ETH, stETH, wstETH)?

After key submission, and if keys have been successfully validated, two actions are required for a validator to be activated:
<ol>
<li>Deposit by Lido Protocol: The time to deposit a validator is unpredictable and depends on factors such as total stake inflows and outflows, gas considerations, module shares, CSM deposit queue size, and the Node Operator's place in the queue.
<ol>
<li>Initially, new stake enters the Lido protocol and is held in a buffer to accommodate any potential withdrawal requests. If the net flow of stake (inflows minus outflows) is positive, the stake is then distributed among various modules according to the Staking Router algorithm, including CSM.</li>
<li>Stake is allocated to modules taking into account the stake share limits for each module. To determine the destination module for the stake, all modules are arranged by the number of active validators. If the module with the fewest active validators has available capacity (i.e., it has depositable keys), stake is deposited there up to the limit of depositable keys or the stake share, whichever comes first. If there remaining deposits to be allocated, the next module in line has its turn, etc.</li>
<li>Upon reaching CSM, the next validator to be deposited is determined by <a href="https://operatorportal.lido.fi/modules/community-staking-module#block-4979446857e44503942bd80678465607" target="_blank" rel="nofollow noopener">the stake allocation queue</a>, which operates on a First-In, First-Out (FIFO) basis.</li>
</ol>
</li>
<li>Activation on Ethereum Network: Once deposited, the validator enters the Beacon Chain activation queue. The time to activation depends on the total number of validators in the queue awaiting activation and the rate of queue processing, which varies based on the total number of active Ethereum validators.</li>
</ol>

When does a validator become active?

Key deletion incurs a <code>removalCharge</code>, which is deducted from the node operator's bond. This charge covers the maximal possible operational costs associated with the queue processing.

Why pay for key deletion?

Only keys that have not been deposited yet can be deleted. If a key has already been deposited, the only way to retrieve the bond is <a href="https://dvt-homestaker.stakesaurus.com/bonded-validators-setup/lido-csm/exiting-csm-validators" target="_blank" rel="nofollow noopener">to exit the validator on the Consensus Layer (CL)</a>. Once withdrawn, the node operator can claim the excess bond.

Can't see the key for deletion?

Exiting CSM validator keys works the same way as exiting solo staking validator keys. The guide on how to exit the validator can be found <a href="https://dvt-homestaker.stakesaurus.com/bonded-validators-setup/lido-csm/exiting-csm-validators#manual-exit" target="_blank" rel="nofollow noopener">here</a>.

How to stop validating in CSM?

A referrer is a software provider specializing in node/validator setup that integrated CSM into their tools. When a referrer directs solo stakers to join CSM via its tool, these Node Operators are marked as being referred from this provider. It doesn’t affect the Node Operators rewards in any way and is used just for the funnel-tracking purposes.

What is a referrer?

For community assistance, join the "<a href="https://discord.com/channels/761182643269795850/1255114351120089148" target="_blank" rel="nofollow noopener">CSM-testnet</a>" channel on the <a href="https://discord.com/invite/lido" target="_blank" rel="nofollow noopener">Lido Discord server</a> to seek advice and guidance.