Rocket Pool ETH (Optimism)

rETH

rETH is a representation of ETH staked through the Rocket Pool network of validators to secure the Ethereum network.

Risk Rating
Best
$4,288.82
-0.97%
Summary
What we like
Enables users to to earn staking rewards with any amount of ETH (minimum of 32 ETH requirement to become a full validator) while retaining liquidity of locked ETH.
What we like less
Greater technical risk around exposure to Optimism bridge and Rocket Pool smart contract risk. rETH is also less liquid than ETH with no redemption mechanism expected until post-merge.
What it means for you
rETH is a solid instrument to gain exposure to ETH staking rewards while promoting greater decentralization of Ethereum node operators.
Information
Blockchain
  • Optimism
Key Metrics
  • Market Cap: $2.2B
  • Fully Diluted Valluation: $2.2B
  • FDV / MC: 1
  • Ranking inside Exponential (excluding stables): #18
  • Circulating Supply: 507,774
  • Total Supply: 507,774
  • Volume (24H): $9.9M
  • ATH: $4,814.31 (12/01/2021)
  • ATL: $887.26 (06/18/2022)
Risk Assessment
Best
Asset Strength

rETH is a low-cap, fully collateralized asset. This asset is exposed to the underlying risks of Rocket Pool and Optimism bridge, which are protocols both rated as Average.

Asset Tokenomics

rETH has an uncapped supply but has inflation control or burn mechanisms in place. rETH is backed 1:1 by ETH staked on the Ethereum blockchain. The asset accrues staking rewards automatically. rETH can trade at a discount to 1 ETH as it is less liquid, has less utility (cannot be used to pay for gas fees), and has more technical risk (Rocket Pool smart contract bugs).

Asset Volatility

rETH is highly correlated to the overall market. RETH can trade at a discount to 1 ETH as it is less liquid, has less utility (cannot be used to pay for gas fees), and has more technical risk (delay to ETH merge, Rocket Pool smart contract bugs).

Dependencies

Optimism Bridge


Rocket Pool

Things to know about rETH

What is Rocket Pool?

Rocket Pool is an ETH Proof-of-Stake protocol that allows users to stake their ETH without needing to lock assets or maintain the required infrastructure. This enables users to continue participating in DeFi activities related to lending and market making. Rocket Pool helps address some of the core problems associated with initial ETH staking around illiquidity, immovability and accessibility. See our risk assessment of Rocket Pool for more details.

How does rETH work?

Users receive rETH tokens when depositing their ETH into the Rocket Pool staking contract. The ETH is split between node operators and then sent to their respective validators. The rETH token value increases to reflect the accrued staking rewards, minus any penalties. There are no minimum deposit requirements when staking through Rocket Pool. The protocol currently charges a fixed 14% fee that is paid out solely to node operators.

How to redeem back for ETH?

ETH deposited into the Rocket Pool staking contract are subsequently locked into the Ethereum PoS deposit contract. The staked ETH is now withdrawable following the Shanghai upgrade. Users must go through an exit queue in order to withdraw their underlying ETH. In the meantime, users can always exchange their rETH for ETH through exchanges that offer liquidity like Uniswap's rETH-ETH pool.

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