The contracts pool users’ ETH, and automatically send 32 ETH batches into AWS-hosted ETH2 validators. Here is what is happening under the hood:
Users deposit ETH into a SharedStake smart contract through a deposit function on the SharedStake website.
This mints vETH2, a token representing the user's staked position.
The supplied ETH is held in a transparent smart contract until the predetermined threshold of 10 to 100 validators is met.
At this point, a SharedStake Core Dev creates the private keys and mnemonic via the command line, then deposits the ETH2 staking contract by calling a
deposit_to_eth2 function on the SharedStake contract.
This function transfers the ETH to the ETH2 staking contract by calling the deposit and passing the public key and additional required information.
This process allows holders to stake any amount of ether they want and pool infrastructure costs, maximizing their profits.