What Is Rocket Pool (RPL)?
We know about Rocket Raccoon. But is this referring to his pool?
For those Guardians of the Galaxy fans out there, I would need to apologize to you all as Rocket Pool (RPL) is not related to Rocket Raccoon.
Rocket Pool is a liquid Ethereum staking protocol. To put it simply, it enables users to participate in staking on Ethereum’s consensus layer or ETH 2.0, which they can earn up to 8.24% annually as staking rewards in the form of rETH tokens.
Circulation Supply
As of June 2023, the total token supply of RPL is 19,401,717. The current market capitalization is about $954,889,540.
Products & Services
rETH are basically representing locked ETHs that the user has deposited on the protocol and can be swapped at any time. The protocol is decentralized and governed using the RPL token by a network DAO. Rocket Pool also enables users to stake ETH and operate nodes to validate transactions on the network. In exchange, users earn up to 6.77% annual staking rewards in ETH in addition to RPL rewards.
The Team
The project is launched on late 2016 by David Rugendyke, who is the founder and CTO of the company. The General Manager of the project is Darren Langley, who has over 18 years of commercial experience in managing and mentoring development teams, designing application architecture, and delivering exciting digital products for government and financial services. The team is complemented by three blockchain and Solidity engineers with a combined 40 years of experience.
Main Components
The project consists of the following major components working in conjunction:
- Minipool: Rocket Pool nodes only need to deposit 16 ETH per validator. This will be coupled with 16 ETH from the staking pool to create a new Ethereum validator, which is called a minipool.
- Execution Level: All of the creation, withdrawing, and rewards delegation is handled by Rocket Pool’s smart contracts on the Execution layer. This makes it completely decentralized.
Benefits of Staking on Rocket Pool
Users can just stake with lesser ETH coins
- Generally, staking ETH require a minimum amount of 32 coins, which is a very large amount for normal retail traders. Rocket Pool offers a alternative solution for these group of users by lowering the number of coins to take part in staking ETH on their platform.
- It is done by issuing rETH token to users who staked their ETH on their platform as rewards. rETH tokens are similar to the original ETH tokens and can be swapped with equivalent prices.
No Lock-Up Periods
- Comparing to traditional Ethereum staking platforms, Rocket Pool does not have a staking period for stakers and node operators to stake their ETH. Users can have the flexibility to stake and unstake whenever they want, which attracts many users to place their ETH holdings because their ETH can be withdrawn whenever they wanted to.
What are your thoughts on Rocket Pool? Anyone is currently using their services or interested in what they do? Let us know in the comment section!
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