What is Rocket Pool (RPL)?

Deep Dive

1. Purpose & Value Proposition

Rocket Pool solves Ethereum’s staking accessibility problem. Solo staking requires 32 ETH and technical expertise, locking funds indefinitely. Rocket Pool enables:
- Small holders: Stake any ETH amount, receiving rETH tokens that auto-compound rewards and remain tradable.
- Node operators: Run validators with 16 ETH, leveraging pooled ETH from stakers to meet the 32 ETH threshold. Operators earn ETH rewards + RPL commissions.
This creates a trustless marketplace where capital efficiency meets decentralization.

2. Technology & Architecture

The protocol uses Ethereum smart contracts to coordinate:
- Minipools: Node-operated validators funded partially by operators (16 ETH) and partially by stakers’ pooled ETH (16 ETH).
- rETH: A liquid staking token minted when users deposit ETH. Its value increases daily as staking rewards accrue.
- Smoothing Pool: Optional feature pooling execution-layer rewards (e.g., MEV) to distribute income evenly to node operators.
Security is enforced via audits (Sigma Prime, Consensys Diligence) and a bug bounty program.

3. Tokenomics & Governance

• RPL utility: Node operators stake RPL as collateral (10-150% of ETH value) to back staker funds, aligning incentives.
• Dual DAOs:
  
  • Protocol DAO: Manages parameters like commissions, RPL inflation, and minipool settings.
  • Oracle DAO: Secures cross-chain data between Ethereum’s Beacon Chain and mainnet via reputable validators (e.g., Lighthouse, Prysm).
    Decisions are permissionless and executed onchain, upholding Ethereum’s ethos.

Conclusion

Rocket Pool reimagines Ethereum staking as a decentralized, accessible ecosystem where users retain liquidity and operators earn competitive yields. How might its permissionless design influence Ethereum’s broader shift toward credibly neutral infrastructure?