Rocket Pool is a decentralized staking pool for Ethereum, offering users an opportunity to earn up to 4.33% APR on ETH2 staking. Participants can either connect to Rocket Pool's array of decentralized node operators or set up their own nodes with just 16 ETH. Those who choose the latter option can earn a staking commission, plus additional RPL rewards for providing RPL collateral, potentially reaching up to 6.36% APR on ETH and extra RPL incentives.
One standout feature of Rocket Pool is liquid staking. This means users benefit from a growing exchange rate rather than increasing their initial staked amount, which could trigger tax implications. Additionally, Rocket Pool offers smart nodes—custom node software that lets anyone operate a node on its network. Losses from poorly performing nodes are spread across the network to reduce individual user risk. The pool's open-source and thoroughly audited smart contracts ensure non-custodial staking and maximize decentralization.
Who Are the Founders of Rocket Pool?
Rocket Pool was created by David Rugendyke, a senior developer with a background in computer science who began working on Rocket Pool in late 2016. He is joined by General Manager Darren Langley, who has over 18 years of experience in managing development teams and creating innovative digital products for the government and financial sectors. The team also includes three engineers specialized in blockchain and Solidity, boasting a combined experience of 40 years.
What Makes Rocket Pool Unique?
Rocket Pool allows anyone to engage in ETH2 staking, regardless of their financial resources or technical expertise. Its primary aim is to facilitate the trustless staking of ETH via a decentralized network of autonomous nodes supported by RPL collateral.
Rocket Pool complements staking-as-a-service providers, who can maximize their returns by joining the network and operating a node, earning rewards in both ETH and RPL. Even large entities like Gemini might utilize Rocket Pool by establishing nodes to stake 16 ETH each. Here, Rocket Pool's staked ETH token, rETH, becomes relevant.
rETH represents tokenized staked ETH within Rocket Pool, enabling users to stake amounts ranging from 0.01 ETH up to 32 ETH. By doing so, participants receive rETH, which naturally accrues staking rewards based on the overall network's node performance. The value of rETH is protected from slashing thanks to insurance mechanisms, with node operators staking RPL as collateral to cover any penalties incurred.
Another way to engage with Rocket Pool is through Node Staking. Users can deposit 16 ETH and are matched with an additional 16 ETH from users depositing ETH for rETH. Essentially, you're staking your 16 ETH alongside another 16 ETH on the protocol's behalf. Rocket Pool adjusts its commission based on node operator demand and available ETH, rewarding node operators for insuring stakers against any slashing or penalties. Node operators are also required to stake a minimum amount of RPL as collateral.
How Many Rocket Pool (RPL) Coins Are There in Circulation?
Unlike most DeFi tokens with a fixed supply, RPL introduces a 5% annual inflation rate. This approach is meant to reward participants in the protocol, as a fixed supply would generate value at the users' expense.
New RPL tokens are distributed as follows:
* 70% to node operators staking RPL as insurance collateral
* 15% to Oracle DAO members for providing oracle data
* 15% to the Protocol DAO Treasury for supporting decentralized development
This model motivates the protocol's main stakeholders and supports further decentralized growth. Oracle DAO members, made up of node operators, ensure accurate oracle data reporting, while the Protocol DAO manages the treasury. Currently, the RPL supply is just over 10 million tokens.
How Is the Rocket Pool Network Secured?
As an ERC-20 token on Ethereum, RPL benefits from the network's security features. Rocket Pool has undergone successful audits by three different firms: Sigma Prime, Consensys Diligence, and Trail of Bits. A bug bounty program further encourages securing the protocol.
Rocket Pool's governance is divided between its Protocol DAO and Oracle DAO. The Protocol DAO oversees elements like RPL inflation, rewards, and auction settings, along with staking commissions and requirements. The Oracle DAO connects smart contracts between the Beacon Chain and the Ethereum main chain. Members of the Oracle DAO include significant ETH2 staking clients such as Lighthouse, Nimbus, Prysm, ConsenSys Codefi, Blockchain Capital, Bankless, and more.
Where Can You Buy Rocket Pool (RPL)?
You can purchase RPL on platforms such as UniSwap (V3), Hoo, BKEX, XT.COM, Hotbit, and Bvnex. For more information on buying cryptocurrencies, you can refer to our detailed guide.
