What is Rocket Pool (RPL)?

Deep Dive

1. Liquid Staking Simplified

Rocket Pool issues rETH, a liquid staking token that accrues value as ETH staking rewards compound. Unlike traditional staking, rETH holders avoid lock-ups and can trade, lend, or use the token in DeFi while earning rewards (Rocket Pool Docs). The protocol’s non-custodial design ensures users retain control of assets via audited smart contracts.

2. Decentralized Node Infrastructure

The network allows anyone to run a validator with 16 ETH (half Ethereum’s requirement), backed by Rocket Pool’s pooled ETH from stakers. Node operators earn ETH rewards + RPL incentives (up to 6.36% APR) for collateralizing their nodes with RPL. Risk is distributed: penalties for underperforming nodes are shared network-wide, reducing individual exposure (Sigma Prime Audit).

3. Governance Aligned with Ethereum’s Values

Rocket Pool uses a dual-DAO system:
- Protocol DAO: Manages RPL inflation, node requirements, and rewards.
- Oracle DAO: Secures cross-chain communication between Ethereum’s Beacon Chain and mainnet.
Decisions are permissionless and onchain, reflecting Ethereum’s ethos of censorship resistance (Governance Post).

Conclusion

Rocket Pool reimagines Ethereum staking by balancing accessibility, liquidity, and decentralization. Its rETH token and node network create a trustless ecosystem where users retain ownership while earning yield. As regulatory clarity grows (e.g., SEC’s 2025 stance on liquid staking), could Rocket Pool’s fully decentralized model set the standard for compliant, user-owned staking infrastructure?