Rocket Pool

Liquid Staking

Rocket Pool is a decentralized Ether staking service that pools Ether from investors to stake across a network of validators.

Risk Rating
Protocol Code Quality
Protocol Maturity
Protocol Design
What we like
Rocket Pool abstracts away the challenges and risks around maintaining ETH staking infrastructure by allowing users to delegate their ETH to node operators. Rocket Pool lets anyone become a validator by depositing 16 ETH and at least 10% in RPL tokens.
What we like less
The protocol is less scalable as it is limited by the 16 ETH requirement to join the network as a validator and depends on a constant flow of new node operators coming online.
What it means for you
Rocket Pool provides an amazing opportunity for you to generate yield on your ETH while removing the opportunity cost of staking. You can also become a validator to earn commissions and protocol rewards.
  • Website
  • Token: RPL
  • Tags: Liquid Staking
Key Metrics
  • TVL: $1.8B (Rank #8)
  • TVL Ranking by Liquid Staking: #2
  • Blockchain: Ethereum
  • Chain TVL
    • Ethereum: $1.78B
Risk Assessment
Protocol Code Quality
  • Code reviewed by several experienced auditors including Sigma Prime, Trail of Bits and ConsenSys
  • Public team promotes accountability
  • No documented protocol hacks since launch"
Protocol Maturity
  • Core protocol launched in 2021; maturity over a year reduces technical risk as smart contracts are moderately battle-tested
  • Top 5% by total value locked reduces risk
  • Decentralized governance increases transparency
  • The core contracts are controlled by a strong 8/15 multisig consisting of well-known entities (4 signers from Rocket Pool); however, we note that the protocol could still potentially rug pull users (i.e. infinite mint of rETH) if it were to collude with 4 additional signers
  • Low voting power concentration reduces risk
Protocol Design
  • No concerns identified
Things to know about Rocket Pool

How Rocket Pool works

Rocket Pool allows users to earn ETH staking rewards without locking ETH or maintaining staking infrastructure. Users deposit their ETH into Rocket Pool's smart contracts and receive rETH in return that represent the value of the user's staked assets along with any staking rewards accrued or penalties inflicted on validators. ETH redemptions are not possible until the Shanghai upgrade, which is expected sometime in 2023; until then, rETH can be transferred or traded on exchanges. Rokcet Pool is curretnly the most decentralized staking protocol as it allows anyone to become a node operator. The node operators are reponsible for operating the protocol's minipools, which are custom Ethereum validators that pair the node operator's ETH with user deposited ETH. This structure enables node operators to participate in ETH staking with just 16 ETH versus the standard 32 ETH requirement. Node operators are also required to bond the protocol's native RPL token onto their minipools as insurance against misbehaviors. Node operators receive newly issued RPL proportional the the amount of RPL bonded to their minipool (min of 10% and max of 150% ratio), as well as a commission from staking rewards. The value of rETH is protected against slashing penalties and downtime due to the built-in insurance mechanisms. rETH is also redeemable for ETH only when there is sufficient liquidity in the user deposit pool to support the trade.

How Rocket Pool makes money

Rocket Pool generates revenue by charging a 14% fee on the staking rewards earned by ETH depositors. Unlike Lido which distributes a portion of the fees to the DAO treasury, node operators on Rocket Pool earn the entire fee.

How you make money on Rocket Pool

You can generate additional yield on top of your ETH by depositing into Rocket Pool to participate in the Ethereum PoS validation mechanism to earn block rewards. The unlocked liquidity with rETH can also be redeployed within a number of popular DeFi protocols to generate additional yield on top of the staking rewards. Lastly, you can operate a node on Rocket Pool to earn commissions and protocol rewards.

Rocket Pool Pools