Rocket Pool
RPLDecentralized Ethereum liquid staking protocol with permissionless node operation
Technology Stack
Introduction to Rocket Pool
Rocket Pool is a decentralized Ethereum liquid staking protocol that distinguishes itself through permissionless node operation. Unlike Lido’s curated validator set, anyone can run a Rocket Pool node with as little as 8 ETH (plus RPL collateral), dramatically lowering the barrier to becoming an Ethereum validator.
Founded by David Rugendyke, Rocket Pool prioritizes decentralization over pure efficiency. The protocol’s design creates a marketplace matching stakers seeking ETH yield with node operators seeking to run validators with less than the standard 32 ETH requirement.
The Decentralization Difference
Lido Model
Curated approach:
- Vetted node operators
- Professional operators only
- Centralized selection
- Efficiency focused
Rocket Pool Model
Permissionless approach:
- Anyone can run nodes
- Lower barrier to entry
- Distributed operators
- Decentralization focused
Why It Matters
Ethereum health:
- Validator diversity
- Censorship resistance
- Geographic distribution
- Network resilience
How Rocket Pool Works
Two-Sided Market
Matching mechanism:
- Stakers: Deposit ETH, receive rETH
- Node Operators: Run validators with reduced capital
- Protocol matches them
- Mutual benefit
rETH Token
Liquid staking receipt:
- Represents staked ETH
- Exchange rate appreciates
- DeFi composable
- Tradeable
Minipool System
Validator structure:
- Node operator provides 8-16 ETH
- Protocol adds remainder (from stakers)
- Creates full 32 ETH validator
- Rewards split
Technical Specifications
| Metric | Value |
|---|---|
| Platform | Ethereum |
| Token | RPL, rETH |
| Node Minimum | 8 ETH + RPL |
| Type | Decentralized LSP |
| Validators | Thousands |
| Permissionless | Yes |
Token System
RPL Token
Protocol token:
- Node operator collateral
- Insurance against slashing
- Governance voting
- Protocol incentives
rETH
Liquid staking token:
- Represents staked ETH
- Exchange rate grows
- Non-rebasing
- DeFi usage
RPL Collateral
Node requirement:
- Minimum 10% of staked ETH value
- Slashing insurance
- Aligned incentives
- Reward boost for more
Node Operation
Becoming a Node Operator
Requirements:
- 8-16 ETH
- RPL collateral (10%+ of borrowed)
- Hardware/cloud
- Technical capability
Rewards
Operator benefits:
- Commission on staker ETH
- RPL inflation rewards
- MEV rewards
- Higher effective APY
Hardware Options
Running nodes:
- Home hardware
- Cloud providers
- Various setups
- Community resources
Staker Experience
Staking ETH
User flow:
- Deposit any amount of ETH
- Receive rETH
- Hold for yield
- Trade or use in DeFi
rETH Properties
Token characteristics:
- Non-rebasing (price increases)
- DeFi composable
- Tradeable
- Self-custody
Withdrawals
Exit options:
- Direct protocol withdrawal
- Secondary market
- Time considerations
- Liquidity varies
Competition and Positioning
vs. Lido
| Aspect | Rocket Pool | Lido |
|---|---|---|
| Operators | Permissionless | Curated |
| Market Share | Smaller | Largest |
| Decentralization | Higher | Lower |
| Efficiency | Lower | Higher |
vs. Centralized Staking
| Aspect | Rocket Pool | Coinbase |
|---|---|---|
| Custody | Self | Coinbase |
| Operators | Community | Coinbase |
| Token | rETH | cbETH |
| Trust | Protocol | Company |
Market Position
Current standing:
- Second largest LSP
- Decentralization leader
- Growing adoption
- Community driven
Challenges and Criticism
Market Share
Growth challenges:
- Lido dominance
- Liquidity disparity
- Network effects
- User acquisition
Complexity
Node operation:
- Technical requirements
- RPL collateral
- Learning curve
- User experience
Capital Efficiency
Economic trade-offs:
- RPL requirement adds cost
- Higher barrier than Lido
- Collateral lockup
- Economic considerations
Liquidity
rETH trading:
- Less liquid than stETH
- Larger slippage possible
- Secondary market variance
- DeFi integration growing
Recent Developments
Atlas Upgrade
Protocol improvements:
- 8 ETH minipools
- Lower barrier
- Improved economics
- Feature additions
Growth Metrics
Adoption progress:
- Validator count
- TVL growth
- rETH supply
- Protocol adoption
DeFi Integration
Ecosystem expansion:
- Lending collateral
- DEX liquidity
- Yield aggregators
- Growing utility
Future Roadmap
Development priorities:
- Decentralization: More node operators
- Growth: Market share expansion
- Features: Protocol improvements
- UX: User experience
- Integration: DeFi ecosystem
Conclusion
Rocket Pool provides a genuinely decentralized alternative to centralized and semi-centralized liquid staking options. The permissionless node operation creates validator diversity that benefits Ethereum’s health.
The trade-off is lower capital efficiency and market share compared to Lido, but for users prioritizing decentralization, Rocket Pool offers meaningful differentiation. The Atlas upgrade’s 8 ETH minipools further lowered barriers to node operation.
For ETH holders seeking liquid staking with maximum decentralization and for aspiring validators with less than 32 ETH, Rocket Pool provides unique value. The protocol’s importance to Ethereum’s decentralization goals may drive continued growth.