Rocket Pool
Rocket Pool is a decentralized Ether staking service that pools Ether from investors to stake across a network of validators.
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- Documentation
- Auditors
- Please see our FAQ on experienced auditors
- Website
- Token: RPL
- Tags: Staking
- TVL: $2B (Rank #16)
- TVL Ranking by Staking: #0
- Blockchain: Ethereum
- Chain TVL
- Ethereum: $1.99B
- Code reviewed by several experienced auditors including Sigma Prime, Trail of Bits and ConsenSys
- Public team promotes accountability
- No documented protocol hacks since launch
- Latest protocol version launched in 2023; maturity over nine months reduces technical risk as smart contracts are sufficiently battle-tested
- Top 5% by total value locked reduces risk
- Multisig wallet controls protocol upgrades
- Multisig consists of at least 4 signers, which means the protocol is less susceptible to centralization risks
- Timelock is at least 48hrs, which provides users with sufficient time to exit if any malicious upgrades are approved
- Low voting power concentration reduces risk
- No death spiral concerns
- This protocol is susceptible to risks related to staking a token to secure a network, such as slashing events
What is Rocket Pool
Rocket Pool is a decentralized Ethereum staking protocol that enables users to stake ETH without needing to run their own validator. Instead of requiring the standard 32 ETH deposit, Rocket Pool allows stakers to deposit as little as 0.01 ETH in exchange for rETH, a liquid staking derivative that automatically accrues staking rewards. The protocol is designed to decentralize Ethereum’s validator set by enabling individuals to become node operators with a reduced bond of 8 or 16 ETH, while the remaining stake is pooled from rETH holders. Node operators earn a portion of the staking rewards but are also responsible for any penalties, ensuring a strong incentive for good performance. Rocket Pool maintains rETH’s value stability through a dynamic exchange rate mechanism that adjusts based on the protocol’s staking rewards. Unlike rebasing tokens like stETH, rETH increases in value relative to ETH rather than issuing additional tokens. The protocol uses a decentralized oracle network, the Oracle DAO (oDAO), to update rETH’s exchange rate and facilitate validator operations.
How secure is Rocket Pool
While Rocket Pool emphasizes decentralization, some aspects of its governance structure still require a level of trust. The oDAO, which is responsible for processing key staking functions, consists of a limited set of members who can vote on protocol upgrades. Nonetheless, Rocket Pool has undergone multiple audits and maintains an active developer community, reinforcing its security and long-term sustainability as a leading decentralized staking solution.
What fees does Rocket Pool charge?
Rocket Pool generates revenue by charging a commission on the staking rewards earned by ETH depositors. Minipools have a base commission of 10%, split between a 5% minipool contract commission and an additional 5% boost. Node operators who stake RPL can qualify for up to 4% extra commission, bringing the total commission to 14% for those with at least 10% of their borrowed ETH staked in RPL. Unlike Lido, which distributes a portion of the staking fees to the DAO treasury, Rocket Pool’s node operators receive the full commission.
