What is Rocket Pool?
Rocket Pool is a decentralized Ethereum staking protocol that allows users to participate in Ethereum staking through both liquid and node staking products. It is designed to provide a more accessible and decentralized approach to Ethereum staking, enabling users to stake their ETH and earn rewards without needing to run a full validator node on their own.
One of the core features of Rocket Pool is its support for minipools, which allow users to run their own validator nodes with a lower minimum stake of ETH. This contrasts with the standard 32 ETH requirement for solo validators on Ethereum. Users can create minipools with as little as 8 ETH, while the remaining ETH needed to activate the validator is pooled from other users, thereby decentralizing the staking process and enhancing the security of the Ethereum network.
Rocket Pool issues rETH tokens to users who stake their ETH through the platform. These tokens represent a user’s stake plus earned rewards and can be used within the broader DeFi ecosystem, providing liquidity and additional earning opportunities.
The protocol is governed by the Protocol DAO (pDAO), which includes node operators and RPL (Rocket Pool’s native token) holders. This DAO is responsible for making decisions about the protocol, including setting various parameters, managing the treasury, and implementing new features. The governance system ensures that active participants in the network have a say in its future development.