Rocket Pool (RPL) is next-gen decentralized staking protocol. The platform was designed from the ground up to streamline the adoption of ETH 2.0. As such, it introduces a host of useful features to remove technical and financial barriers to user participation.
What problems is Rocket Pool trying to solve?
Rocket Pool developers looked at the ETH 2.0 network and realized that it would be very difficult for anyone to save up to 32 ETH to get validator node capabilities. They also knew that the more people involved in network security, the better it was for everyone.
As such, Rocket Pool has created a unique system that incentivizes network participants while halving minimum wagering requirements. ETH 2.0 stakingrs are currently required to stake 32 ETH. Rocket Pool users can stake 16 ETH and become a validating node.
Another major issue that ETH stakingrs have complained about is the hardware requirements. To become a staking node on ETH, you need to have a strong internet connection. Each time your node disconnects from the network, you are penalized. Rocket Pool helps solve this problem in a unique way.
Rocket Pool spreads losses across the entire loan pool. This strategy reduces loss for everyone and allows users to participate in validation and staking processes without worrying about their internet connectivity resulting in massive penalties. Therefore, more nodes can join from more regions of the world using this system.
Advantages of Rocket Pool
There are plenty of perks that make Rocket Pool a cool platform to watch this year. On the one hand, the network was structured to be open to the public. Anyone can join the Rocket Pool decentralized node operator network. All they need to do is meet the minimum wagering requirements.
There are no gatekeepers preventing users from thriving. There is also no credit or background check. You don’t need to provide any personal data, which makes the whole process more secure and private for the whole community.
Liquid Staking on Rocket Pool
Liquid staking protocols are the main draw for DeFi users today. Rocket Pool users guarantee returns while taking advantage of a growing exchange rate. This strategy has some advantages over reline systems. For one thing, it’s designed to support tax reporting, which can save you money on accounting.
Another great thing about Rocket Pool is security. The network features open-source code and the developers invite the community to review this system. Additionally, the platform has had the network’s smart contracts audited many times successfully. These features, combined with network redundancy and decentralized structure, make Rocket Pool a popular choice for users and developers.
Minimized penalty risk
Penalties are a major issue for stakers and network nodes today. In the Rocket Pool protocol, penalties incurred by node operators are directly deducted from their revenue compared to ETH holders. By socializing losses, it minimizes the financial damage you suffer as a single node operator.
Passive income should be at the forefront of anyone’s financial strategy. Rocket Pool makes it easy to secure passive income through the staking protocol. The network supports a staking pool for ETH and RPL. Anyone can earn commissions from staking pool rewards by providing RPL collateral.
Rocket Pool is noncustodial, which adds to the overall security of the protocol. Non-custodial platforms never ask you to provide your funds. As such, you retain control of your assets until the p2p transaction is executed. This style of staking protocol prevents losses due to lack of access to your funds.
This strategy also prevents hacks, as the hacker would need to target you specifically rather than using an exchange wallet. This structure is advantageous for Rocket Pool. On the one hand, this means that node operators never manage funds directly. Removing nodes from the guard equation greatly streamlines the process.
How does Rocket Pool work?
Rocket Pool operates as a decentralized node operator network. The protocol is designed to lower the entry bar to ETH 2.0 validation. As part of this strategy, the network allows users to deploy rETH across the entire Ethereum DeFi ecosystem to maximize yield.
The smart node software is one of the core components of the Rocket Pool environment. This node software makes it easy for any group, business or operator to manage a node. It also allows you to stake your ETH and get more returns. The software is free to download and use.
The RPL token is the main utility token of the Rocket Pool network. Users must have RPL to participate in system features. You can stake RPL to secure passive returns. The token is also used as a rewards token that allows you to enjoy compound returns.
When you stake your tokens, you receive the rETH liquid staking token. This token will increase in value along with the liquidity of the pool. You can also trade this token or use it across the ERC-20 DeFi sector to secure additional investment returns.
Rocket Pool first entered the market as a concept based on the Mauve Paper of 2016. This document was already in use by Ethereum developers looking to improve staking protocols at the time, but Rocket Pool has pushed the concept further.
Rocket Pool was founded by Darren Langley. Before working on Rocket Pool, he had +17 years of experience in the commercial sector. Today, it remains an integral part of the project.
How to Buy Rocket Pool (RPL)
Currently, Rocket Pool (RPL) is available for purchase on each of the following exchanges.
kraken – Founded in 2011, Kraken is one of the most trusted names in the industry with over 9,000,000 users and over $207 billion in quarterly trading volume.
The Kraken Exchange provides trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend the exchange for US residents. (Outside New York and Washington State)
Defend – This is one of the best exchanges for US and UK residents which offers a wide range of cryptocurrencies. Germany and the Netherlands are prohibited.
Respect the disclaimer: Assets available on Uphold are subject to region. All investments and transactions are risky and may result in loss of capital. Crypto-assets are largely unregulated and therefore unprotected.
Rocket Pool (RPL) – Support the ETH community and thrive
Rocket Pool has a smart strategy because there are a lot of long-time ETH holders who would like to take their tokens and secure the returns. However, they never reached the 32 token mark. Now they can put their ETH to work and start recovering some of the funding they lost on fees before the network converted to ETH 2.0. Therefore, you can expect Rocket Pool to see more adoption as ETH 2.0 is live and the community is responding well to the upgrade.