Ethereum staking service Rocket Pool reaches $1 billion in total value

According to DefiLama, Rocket Pool, an Ethereum staking platform, reached a total value (TVL) exceeding one billion dollars on February 9, according information. This milestone is less than two years after the Decentralized Financing Protocol (DeFi) mainnet was launched on November 9, 2021. Rocket Pool is a liquid staking option for Ethereum. Customers can choose to join an existing Ethereum decentralized operator or to create their own node.

The 16 Ether (ETH), which users can use to start their own node, is less than the 32 ETH that is required by the network. Another 16 ETH comes in from a pool of users who have joined a decentralized node operator. This is a major improvement on traditional staking solutions as the capital requirements for this solution are much lower. This has a much lower minimum deposit requirement, of 0.01 ETH. In exchange for their Ethereum, depositors get a liquid staking token called rETH. This token acts as proof that the user is eligible for staking reward over time and accumulates yield.

Rocket Pool operators are eligible for 7.26% per year in compensation for verifying transactions using the Ethereum blockchain. However, Stakers are eligible for 4.68%. These rates can change at any time and depend on the supply and demand of nodes on Ethereum Blockchain. Changes in the price at which ETH is sold on the market could make incentives obsolete or more valuable.

There are currently 385,344 ETH in the protocol and 2,068 node operator. ConsenSys and Trail of Bits have examined the smart contracts used in Rocket Pool. Immunefi also manages the bug bounty program. According to Ethereum’s creators, the Shanghai update will most likely be operational by March. After the successful switch from proof-of-stake to Ethereum in September 2022 users will be able withdrawal any ETH staked or any prizes they have accumulated.

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