Rocket Pool’s Ethereum Staking Crossed the Mark of $1B in TVL

The achievement comes less than two years after 

the introduction of its mainnet.

On February 9, the Ethereum staking service Rocket Pool's total value locked (TVL) hit $1 billion, according to data from reports. Less than two years have passed since the mainnet introduction of the decentralised finance (DeFi) protocol on November 9, 2021. Rocket Pool, dubbed a "liquid staking solution for Ethereum," enables anyone to run or join a decentralised node operator for Ethereum.

Instead of the 32 ETH required by the network, users can run their own nodes with just 16 ETH, and another 16 ETH comes from a pool of users who join a decentralised node operator. This is far less capital-intensive than traditional staking systems. 

The deposit minimum for the latter is just 0.01 ETH. Depositors receive the liquid staking token rETH in return for their ETH, demonstrating that the user is qualified to earn yield by staking rewards over time.

Rocket Pool node operators can earn up to 7.26% annually for validating transactions on the Ethereum blockchain, while stakers can earn 4.68%. The demand for and supply of nodes, as well as the number of transactions on the Ethereum blockchain, affect both rates, which are erratic. Additionally, adjustments in the market price of ETH may cancel out or increase incentives.

2,068 node operators and 385,344 ETH are currently staked in the protocol. Sigma Prime, ConsenSys, and Trail of Bits have all examined Rocket Pool's smart contracts. Additionally, Immunefi facilitates the project's bug bounty programme. Shanghai's blockchain update is expected to go live in March, according to Ethereum's creators. 

The successful implementation of proof-of-stake on the network in September 2022 will make it possible for users to withdraw their staked ETH and earned prizes.

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