According to data from DefiLlama, the Ethereum Rocket Pool staking service reached $1 billion in total value locked (TVL) on February 9. The move comes less than two years after the decentralized finance (DeFi) protocol launched its mainnet on November 9, 2021. Dubbed as a liquid staking solution for Ethereum, Rocket Pool allows users to join an operator of decentralized Ethereum node or run your own node.
Unlike conventional staking solutions, the capital requirements are much lower as users can run their own node with just 16 Ether (ETH) instead of the 32 ETH specified in the network, with another 16 ETH coming from a group of users joining a decentralized node. operator. For the latter, the deposit requirement is only 0.01 ETH. Depositors receive the rETH liquid staking token in exchange for their ETH, demonstrating that the user is entitled to staking rewards over time and accruing performance.
In exchange for validating transactions on the Ethereum blockchain, Rocket Pool node operators receive up to 7.26% per year, while stakeholders receive 4.68%. Both fees are variable and are subject to the supply and demand of the nodes, as well as the volume of transactions on the Ethereum blockchain. In addition, the rewards can also be voided or extended by changes in the ETH market price.
Currently, the protocol has 385,344 ETH staked and 2,068 node operators. Rocket Pool smart contracts have been audited by Sigma Prime, ConsenSys, and Trail of Bits. The project also has a bug bounty program facilitated by Immunefi. According to Ethereum developers, the blockchain’s Shanghai Update is scheduled to go online in March. It will allow users to withdraw their staked ETH and rewards accumulated since the network’s successful transition to proof of stake in September 2022.
