Rocket Pool

Staking

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

Risk Rating
Good
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
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.
Podcast
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Degen Responsibly
RocketPool: Decentralizing Ethereum staking
Our guest today is Maverick, BD lead at Rocket Pool. Rocket Pool is Ethereum's only permissionless and decentralized staking protocol, where anyone can start operating an Ethereum node with as little as 16 ETH (instead of the standard 32). RocketPool unlocks liquidity on the staked capital through rETH, a yield-bearing flavor of ETH.  In this conversation we explore, how Rocket Pool works, what makes it unique, and why node operators and stakers might choose Rocket Pool over alternatives. We also dive into Rocket Pool's unique governance structure with the pDAO and the oDAO to maintain a healthy ecosystem.  ----- Degen Responsibly is a series of live talks by Exponential DeFi and a guest protocol. In these conversations we explore some of the latest and greatest projects in DeFi, what makes them unique, their builders but also talk about the risks and what to watch out for. Our goal is to help investors make better informed decisions and help them save time as they do their own research. ----- Learn more about us at exponential.fi and follow us @exponentialdefi ----- Information provided here is presented for educational purposes only and does not consider financial advise or any offer or solicitation to buy any of the tokens or invest in any of the pools mentioned throughout the podcast.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $4B (Rank #7)
  • TVL Ranking by Staking: #0
  • Blockchain: Ethereum
  • Chain TVL
    • Ethereum: $3.96B
Risk Assessment
Good
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
  • 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
Protocol Design
  • No death spiral concerns
  • This protocol is susceptible to risks related to staking a token to secure a network, such as slashing events
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. Rocket Pool is one of the most decentralized staking protocol as it allows anyone to become a node operator. The node operators are responsible 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
Rocket Pool ETH Staking
ETH
2.9%
Yield
$4B
TVL
Risk
A
Protocol
Rocket Pool
Chain
Ethereum
Details