How to install & run the Elixir 2.0 Validator Node

🗻Difficulty level: Hard, requires managing a VPS server

⏱ Time: 15 mins initially, 5–10 mins ad hoc for server updates

💲 Investment needed: Could be to $100 — $150 in VPS rental fees

📈 Possible return: $$$

💰 Risk/Reward Ratio: Low Risk — High Reward

Airdrop Opportunity

This airdrop opportunity is based around setting up and running a validator node on the Elixir network. It will require some technical expertise and coding experience as it will require managing the node on a VPS.

Although no airdrop information has been confirmed by Elixir Finance we shouldn’t ignore the possible opportunity of an Aptos style reward for node validators.

What is Elixir Finance?

SAccording to the Elixir Finance website:

Elixir is fully composable — exchanges can natively integrate Elixir to unlock retail liquidity for market making on their platform, vastly improving overall liquidity and capital efficiency.

The protocol enables active market making on concentrated liquidity AMMs. Both projects and venues can access active MM on pairs, enabling tighter bid-ask spreads and ensuring liquidity exists throughout the entire curve.

Elixir supports most API-based central limit orderbooks (CLOBs), allowing projects and venues to build algorithmically deployed liquidity on orderbook pairs.

Simply put other protocols can access Elixir’s liquidity pools for their own needs to ensure they are liquid from day one.

Funding

Elixir raised $2.1m in Seed funding from VC groups such as FalconX, OP Crypto, Chapter One and BitMex. Given its early stage it has time and opportunity for further rounds of investments.

What will it cost to run this airdrop?

To become a node validator you will need to get a VPS (Virtual Private Server) on which to install and run your node.

A VPS comes at a cost and is usually charged monthly so you’ll need access to a debit or credit card to be able to pay for the service. There are some providers that offer a free VPS server for a period of time but in my experience you’ll have uptime issues and this is critical when running a validator node, so it’s a case of you get what you pay for.

Reputable VPS providers can cost anywhere between $8-$25 a month and this cost can alter from node to node with some requiring more or less computing power than others and therefore the monthly cost can vary. You will also need to pay a set up fee for each VPS also which is usually around $10.

I don’t recommend using a domestic PC or laptop as other applications might interfere with the node running properly, you’ll need a publicly accessible IP and uptime is a major factor in the reward that you receive.

So definitely do not run on your kids gaming PC or work laptop!!

What do I need to take part in this airdrop

Apart from a device with an internet connection you will need:

1. VPS

The first item you will need is a VPS, this is essentially a virtual computer that runs in the cloud. I highly recommend Contabo. They are based in Germany and I run all my validator nodes on them.

2. Terminal Application such as PuTTY or Termius

The second item you need is software like PuTTY or Termius. These are software applications that allow you to connect from your computer or mobile device to the VPS in order to install software or make updates.

3. Metamask wallet with Goerli test network set up.

You will need some gETH for transaction fees — I recommend having at least 0.1 gETH to cover all the transactions needed.

If you don’t have Goerli test network in your Metamask wallet you can add it via https://chainlist.org/chain/5.

You can request testnet funds via the Elixir Finance discord group. Under Community section go to the goerli-eth-requests channel and enter your wallet address.

Setting up VPS

Let’s get started!

The Elixir server requirements are:

• 30 GB SSD storage
• Quad core CPU
• 4 GB of Ram

So by looking at the 4 VPS options on Contabo we can see that CLOUD VPS S is the most suitable as it has 4 CPU cores, 8GB RAM and 50GB SSD for $8.49 per month.

Click the Select Button under the CLOUD VPS S server option. It will cost $8.49 a month and you will need a debit or credit card to pay for it. You will also have to pay a setup fee every time you take out a new VPS subscription, but it’s only for the 1st month.

To run validator nodes you just need to accept that you’ll have to run your node on a VPS server for a few months before you may see any rewards, so have in your head that each validator node may cost you somewhere between $100-$150 each in VPS fees.

If you can’t afford that then focus on the less costly airdrop opportunities otherwise you’ll get frustrated paying for a VPS for a couple of months and then getting disconnected and losing all your validator rewards.

So please be warned!

Once you have selected the CLOUD VPS S server you will see a page of options as below:

To start select your term length, options are 1 month, 3 Months, 6 Months and 12 months. The longer term you select the lower the set up fee. With 12 months having no setup fee.

Personally I just choose the 1 month option as the savings are not that significant over 12 months and if you lose interest or if there aren’t any opportunities you can end up having a VPS server laying dormant that costs you money.

Also you cannot run multiple nodes on a single VPS, so bear that in mind also — you will need a separate VPS server for every validator node you choose to run so it can get expensive if you are not careful.

Next choose the region you wish your VPS to be located in. Contabo is in Germany so it is cheapest there, so just keep it selected. For running nodes, location isn’t that important.

After choosing your region select Storage type, keep it at 200GB SSD as its free with the VPS. Sometimes Contabo does promotions and you can get an upgrade to 400GB or 800GB for free so if you see extra storage for free then feel free to take it!

Next we select the operating system, from the drop down select the latest Ubuntu 22.04.

After the operating system we now have to create a password for our VPS. You can either use the Generate new password option or choose your own BUT write it down in a safe place please as you will need it again.

If you forget it you will need to reset your VPS and you may lose any rewards generated which may hurt!

Sections 6 & 7 can be left as is, you just just need to select the Next button on the right hand side.

This takes to the review your order page — if you are comfortable with the costs then you can click on Order and Pay below:

If you are new to Contabo this should then take you to a registration page where you fill in whether you are an individual or business, your name, address, phone and email details, once completed click Next:

You will then be taken to the payment screen where you enter your payment details.

Once you have finished paying for your order. You will receive a first email like this:

Around 15–20 mins later you should receive a second email with your VPS access details. In this email you will see your IP address and your password both of which you will need a little later.

Setting up Termius

Now that our VPS is setup and ready to go we need a way of connecting to and managing it.

Personally, I prefer to use Termius than PuTTY, in my opinion it’s easier to use and has some nice features for both mobile and desktop that I like, so this part of the article I’ll cover how to get and use Termius (although if you prefer to use PuTTY then go ahead the commands are the same). Also if you use a work computer that is pretty looked down Termius can be installed without requiring admin rights, unlike PuTTY.

I personally use both desktop and mobile versions of Termius, but it’s up to you which you prefer to use. However for the purposes of this tutorial I’ll be using the desktop version.

To get Termius:

Mac & Windows download can be found here: https://termius.com/download/windows

Android and iOS can be downloaded from their respective app stores by searching for “Termius SSH client”.

Once Termius is installed you can create your free Termius account.

Once you have created your Termius account you can get started.

Create new Host

Click on the New Host, and you’ll see the New Host setting field open up on the right hand side of your screen.

Key fields are:

Alias: This is the name for your VPS. For example, my Alias is “ElixirNode” so it’s easy for me to see which VPN account I’m connecting to, especially as I run more than one.

Hostname: This is the VPS IP address from the Contabo second confirmation email. Copy it from the bottom of the email and paste here.

Username: It must be “root”.

Password: The one I said to write down when we set up our Contabo VPS account.

Here is the host settings filled in for your reference:

With the host created double click the newly created Host so we can connect Termius to your VPS server.

A ‘Continue’ button will then appear when you first connect, just click it and you should now be connected to your VPS!

Now we can get into the really good stuff!

Setting up the Elixir Node

Working with Linux commands can be very complicated, especially to new users. So I highly highly recommend that you copy and paste the exact commands that I give you below. In 99% of the time where you have an issue it will be down to entering the wrong command or missing a step, so if you go through these steps thoroughly and one by one you’ll have no problem.

Once connected to our VPS we should see the following in Termius:

1. With a new VPS the first thing we need to do is update the linux packages on our Ubuntu server to ensure everything is up to date.

Copy the following line:

sudo apt update && sudo apt upgrade -y

And paste it into Termius by right clicking on the command prompt (it should automatically paste it in for you):

Next, press Enter.

It will take approx 1–2 minutes to complete. When you see the following prompt you are good to proceed to the next step:

2. Install additional libraries

Copy the code below and paste it into your Termius console:

sudo apt install pkg-config curl git build-essential libssl-dev -y

Next, press Enter

This take just a few seconds and you should now see the following:

3. Install Screen

Copy the code below and paste it into your Termius console:

apt install screen -y

Next, press Enter

This will take a few seconds, when you see the below command prompt you can proceed to step 4:

4. Install Docker Compose (Docker allows us to isolate our node so it doesn’t get interfered with by any other programmes — so super important!)

Copy the code below and paste it into your Termius console:

sudo curl -L "https://github.com/docker/compose/releases/download/1.29.2/docker-compose-$(uname -s)-$(uname -m)" -o /usr/local/bin/docker-compose

Next, press Enter.

It will take just a few seconds to complete the docker compose installation, and when you see the screen below, you can go to the next step:

5. Check Docker Compose version we installed

Copy the code below and paste it into your Termius console:

docker -- version

Next, press Enter

You should see the docker version information as shown below:

6. Ensure the docker compose file is executable:

sudo chmod +x /usr/local/bin/docker-compose

7. Download the Validator node docker file as we need to make some edit to it:

wget https://files.elixir.finance/Dockerfile

8. Open the Dockerfile to edit it:

sudo nano Dockerfile

Press Enter.

This will bring up the Dockerfile for you to edit:

There are three pieces of information that you need to update:

a) ENV ADDRESS=0x

In ENV ADDRESS you need to put in your Metamask Wallet address that you want to use with this validator Node

b) ENV PRIVATE_KEY=0x

In ENV PRIVATE_KEY you need to put in your wallet private key.

To get your walllet private key, just follow these instructions:

Open your Metamask Wallet, and navigate to the account you wish to use and click on the 3 dots and then click on Account details:

Once you in the Account Details screen click the Export private key button:

You need to enter your Metamask password to access the private key information:

Once you have entered your password you should see your private key. Select all the text and copy it.

Now paste it in the ENV PRIVATE_KEY= line

c) ENV VALIDATOR_NAME=AnonValidator

Change the AnonValidator name to whatever you want. My validator node is called TrialsinCrypto. However, after spending time in the discord I recommend that you set the Validator Name to your discord username including the # and numbers.

With all this information your Dockerfile should look something like this:

Now click Ctrl X to exit the Dockerfile. You will then be prompted to save the file — press Y to save.

On exit you will be prompted to save the file — press Y and Enter to confirm the save and exit the Dockerfile.

9. Build the Dockerfile image:

Copy the code below and paste it into your Termius console:

docker build . -f Dockerfile -t elixir-validator

Next, press Enter.

It will take a few seconds but you should see something like this below:

10. Start your validator node

Now use the following command to start the Elixir Screen:

screen -S elixir

This will start the Screen command:

Enter the following code to launch your node:

docker run -it --name ev elixir-validator

Your screen should look like this:

Press CTRL+A+D to detach screen and return to the command prompt.

11. Enroll your wallet with your Validator Node

Step 1 — Visit https://dashboard.elixir.finance/ and click the claim 1000 ELXR button.

You will need to confirm the trasnaction in your wallet.

Step 2— Next click the Stake button:

This will bring up a pop up where you can define how much you wish to stake.

Personally I just staked the full 1000, but you need to stake a minimum of 100 otherwise you wont be able to enrol as a validator on the network.

Once you have entered your stake click the approve button and confirm in your metamask wallet.

Once approved you can then confirm the stake:

Again you need to confirm the transaction in your metamask wallet.

Step 3 — Enroll your Validator Node.

If the staking was successful you will see that your staked balance is now showing up as 1000.0 ELXR.

Click the enroll button to enroll as a validator in the Elixir network. If you miss this action you may not be eligible for rewards!

The last action you can take is to delegate to another wallet.

Click on the delegate button to and then enter the address you wish to delegate to. If you know the validator addess simply enter it into the field. If you want to delegate but dont have someone to delegate then feel free to delegate to my address:

0xDFB2c0EE30bBC99d913f18047a293A1dbaaE8dc1

If you do delegate to me, thank you!

That’s it — you have successfully become a node validator for the Elixir network! Node validators can do very well with airdrops, with those running nodes for Aptos (some got $10k+) so fingers crossed we can do well with Elixir!

Thank you for your time, if this article was helpful please share it with others so they can set up a Elixir validator node.

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