What is RocketPool?
Rocket Pool is a protocol on Ethereum that provides a liquid staking solution. It aims to make staking accessible to more users by lowering the capital requirement and simplifying the process.
Background
David Rugendyke founded Rocket Pool in 2021.
How It Works
Rocket Pool was created to address two significant challenges with Ethereum staking: the high capital requirement and the technical complexity. Using Rocket Pool, users without the necessary capital or technical skills can participate in staking. They can stake with as little as 0.01 ETH and receive rETH, a token representing their staked ETH that earns yield.
To become a validator or node runner on Rocket Pool, the deposit requirement is 16 ETH — half of what’s required to validate on the Ethereum 2.0 base protocol. The other half comes from the rETH staking pool. RPL, Rocket Pool’s native utility and governance token, is also involved. Node operators must bond RPL, ranging from 10% to 150% of their ETH collateral, as additional insurance against any potential slashing penalties resulting from their failure to fulfill their duties.
Key Takeaways
- Rocket Pool is a liquid staking protocol on Ethereum that lowers the barriers to entry for staking by reducing capital requirements and technical complexity.
- Users can stake as little as 0.01 ETH on Rocket Pool and receive rETH in return, a token representing their yield-bearing staked ETH.
- To be a validator or node runner on Rocket Pool, only 16 ETH is needed, half the amount required to validate on the Ethereum 2.0 base protocol.
- The remaining 16 ETH required to validate comes from the rETH staking pool.
- Node runners must bond Rocket Pool’s native token, RPL, as insurance against any potential slashing penalties. The amount of RPL bonded can range from 10% to 150% of their ETH collateral.
