Rocket Pool: A Decentralized Ethereum Staking Pool

Rocket Pool is a decentralized Ethereum staking pool that offers up to 4.33% APR for ETH2 staking. It enables users to participate in ETH2 staking, regardless of their capital investment or level of technological sophistication. The protocol is designed for two main user groups: those who want to participate in tokenized staking using rETH (Rocket Pool's staked ETH wrapper) and those who wish to stake ETH and run a node.

Founders and Team

Rocket Pool was launched by David Rugendyke, a senior developer with a computer science background who started designing Rocket Pool in late 2016. He is supported by General Manager Darren Langley, an executive with over 18 years of commercial experience in managing and mentoring development teams, designing application architecture, and delivering digital products for government and financial services. The team is complemented by three blockchain and Solidity engineers with a combined 40 years of experience.

Unique Features

Rocket Pool enables trustless staking of ETH to a network of decentralized autonomous nodes underpinned by RPL collateral. It aims to provide a fully non-custodial, trustless, and permissionless staking protocol.

rETH Tokenized Staking

Users can deposit as little as 0.01 ETH to Rocket Pool and receive rETH in return. rETH is a tokenized version of the staked ETH in Rocket Pool, which automatically accrues staking rewards based on the performance of the entire network of node operators. The value of rETH is protected against slashing and downtime by insurance mechanisms, with node operators staking RPL on nodes as collateral for any penalties they incur.

Node Staking

Users can deposit 16 ETH and are assigned an additional 16 ETH from users who are depositing ETH and receiving rETH. In essence, node operators stake their own 16 ETH and 16 ETH on behalf of the protocol. Rocket Pool automatically adjusts its commission rate based on the supply and demand of node operators and available ETH. Node operators are rewarded for providing insurance for stakers in case they are penalized or slashed. Furthermore, node operators must deposit a minimum amount of RPL as collateral.

RPL Tokenomics

RPL follows a different approach than most fixed-supply DeFi tokens and introduced a 5% annual inflation. The protocol argues that any value-generating protocol will need to reward its participants. The newly issued RPL tokens are emitted as follows:

• Node Operators staking RPL as insurance collateral (70%)
• Oracle DAO members providing various oracle data (15%)
• Protocol DAO Treasury to fund decentralized development (15%)

This model is designed to incentivize the protocol's key stakeholders and funds further decentralized development.

Network Security and Governance

RPL is an ERC-20 token on Ethereum. Rocket Pool has been successfully audited by three separate firms: Sigma Prime, Consensys Diligence, and Trail of Bits. It also runs a bug bounty program to incentivize keeping its protocol safe.

Governance of Rocket Pool is split across its Protocol DAO and Oracle DAO. The Protocol DAO is responsible for settings like RPL inflation, rewards, and auctions, the staking requirements and commissions for nodes, and deposits. The Oracle DAO bridges the smart contracts between the Beacon Chain and the ETH1 main chain. Members of the Oracle DAO include several big ETH2 staking clients like Lighthouse, Nimbus, Prysm, ConsenSys Codefi, Blockchain Capital, Bankless, and others.

Current and Upcoming Project Development

Rocket Pool offers a decentralized and trustless Ethereum staking pool. In response to Ethereum's upcoming "Shapella" upgrade, Rocket Pool is introducing new features, including 8-ETH bonded minipools, solo validator conversion, and automatic rewards distributions. Node operators can now create minipools with an 8 ETH bond instead of 16 ETH, reducing capital requirements. Solo validator conversion allows users to convert a solo validator into a Rocket Pool minipool without exiting. Automatic rewards distributions enable node operators to efficiently manage rewards earned from staking. Additionally, the Atlas update brings improvements to the Smartnode stack, such as a unified Grafana dashboard, Nimbus enhancements, and Lodestar support.

Conclusion

Rocket Pool is a decentralized and trustless Ethereum staking pool that caters to a wide range of users, from individuals to staking-as-a-service providers. It offers tokenized staking with rETH and allows users to run nodes with only 16 ETH. With its non-custodial staking and robust security measures, Rocket Pool aims to embody the core ethos of Ethereum and DeFi, allowing self-sovereignty to thrive. As Ethereum continues to transition to a Proof of Stake consensus mechanism, Rocket Pool provides a valuable service to the ecosystem, making staking more accessible and decentralized for all users.

Rocket Pool Price Analysis

As of November 24 2024 Rocket Pool has a marketcap of $245M. This is {{percentagefromath}} from its all time high of $61.90. In terms of its tokenomics, there's a total supply of 21M with 100% currently outstanding. Keep in mind Rocket Pool has a fully diluted value of $245M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.