Rocket Pool (RPL) Research

Rocket Pool (RPL) Research Details

Rocket Pool (RPL) Rocket Pool

INTRODUCTION

Rocket Pool is a network of decentralised nodes that validate transactions on the Ethereum 2.0 blockchain. Its goal is to help people who don't have the minimum number of ETH tokens needed to stake or don't have the technical skills needed to run a node.

Investors don't have to put down the minimum of 32 ETH; they can stake with only 16 ETH. Also, Rocket Pool automates the whole process, and all validators are handled by the platform without any help from the user.

Even if they use Rocket Pool, Ethereum investors who want to stake still have to keep their tokens locked up for a long time. After being staked, all assets are locked until Phase 2 of Ethereum's Proof-of-Stake rollout.

When a user stakes 16 or 32 ETH, he gets the rETH token in return. This token stands for two main things: your stake and your yield. While the assets are locked up, stakers can use rETH just like any other ERC-20 token, such as by selling it, using it on DeFi platforms, or putting it in cold storage.


HISTORY AND FOUNDER

David Rugendyke, an Australian blockchain developer, started Rocket Pool in late 2016.  Rugendyke is the project's Chief Technology Officer (CTO), and Darren Langley, an experienced software engineer, is the project's General Manager. Langley was one of the most important people working on the protocol back in 2018.

The company's headquarters are in Brisbane, Australia. In May 2018, the company held a seed round that brought in Venture Capital (VC) of an undisclosed amount. This is the only venture capital funding Rocket Pool has ever received. The funding came from ConsenSys Ventures, a VC arm of the company ConsenSys, which makes blockchain solutions.


REASON TO BUILD THE PROJECT

The main reason Rocket Pool was made was to give more people access to blockchain staking by making it available to a larger group of users.

Rocket Pool's algorithm is made for two types of users: those who want to participate in tokenized staking using rETH and those who want to stake ETH and run a node. In this way, the Ethereum-backed protocol makes sure that its network is not tied to any one party. This also gives participants the ability to tokenize their staking with as little as 0.01 ETH, among other benefits.

It was important to make "a protocol layer for ETH2 staking," especially since "the vast majority of players don't have the technical skills to run a node or the money to own 32 ETH," as explained by the Rocket Pool's developers.


BASE OF PROJECT

Rocket Pool operates by running nodes that validate Ethereum 2.0 network transactions. When an ETH investor deposits ETH and becomes a node operator, they can start betting on the Rocket Pool. If only 16 ETH are bet, the deposit will be added to the ETH that another user has already put down.

The node does all the usual things and tasks that a normal Ethereum node does. In exchange, it gains a flexible APY, which is credited to the ETH the user deposited as a commission.

The supply and demand of Ethereum 2.0 determine how much of a commission the user gets. When there is a large amount of ETH in a pool and a limited amount of space in minipools, there is a very high demand for nodes. If there is a large amount of capacity but insufficient ETH, demand is low.


USE CASE

Rocket Pool's protocol has a three-token ERC-20 token format.

  • The first token, rETH, stands for ETH that has been staked and is earning interest. Whenever a user stakes towards a node operator in the Rocket Pool network, they convert some of their ETH holdings into rETH. Users' rETH can be used in DeFi protocols or sold, whichever the user wants.

  • The other token built into the protocol is RPL. Both RPL and rETH can be bought with ERC-20 wallets. Those who have RPL and 16 ETH can freely provide node operator services. 

  • A third token, nETH, is a 1:1 representation of node operators' deposits, rewards, and commissions. Node operators can trade nETH for ETH from the beacon chain, effectively removing the nETH from circulation.


MAJOR NEWS AND EVENTS

DATE

NEWS/EVENTS

IMPACT

08/09/2022

MEXC Will List Rocket Pool (RPL) in Assessment Zone

+32% Increase

 

18/07/2022

Rocket Pool will provide staking services in the race to catch Lido

+33% Increase


CONCLUSION

The unique protocol used by Rocket Pool provides confidence and efficiency in all staking activities. Users and node operators alike have access to a technology that not only suits the fast-paced nature of the blockchain but is also dynamic, since it enables loan markets to run validators more effectively.

The DeFi industry will definitely benefit from this new and secure way to deal with cryptocurrencies.


DISCLAIMER

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto products are currently unregulated and subject to market risk. Please seek independent financial advice or do your own research before investing.