According to data from DeFi Llama, the Ethereum staking service, Rocket Pool, reached $1 billion in total value locked (TVL) on February 9. The move comes less than two years after the DeFi protocol launched its mainnet on November 9, 2021. Rocket Pool, a liquid staking solution for Ethereum (ETH), allows users to join an operator of decentralized Ethereum nodes. or manage your own node.
Unlike conventional staking solutions, the capital requirements are much lower as users can run their own node with as little as 16 ETH, versus the 32 ETH specified by the network, with another 16 ETH coming from a pool. of users joining a decentralized node operator. For the latter, the deposit requirement is only 0.01 ETH. Depositors receive the liquid staking token “rETH” in exchange for their ETH, demonstrating that the user is entitled to staking rewards over time and accruing returns.
In exchange for validating transactions on the Ethereum blockchain, Rocket Pool node operators receive up to 7.26% per year, while stakers receive 4.68% per year. Both fees are variable and subject to node supply and demand, as well as transaction volume on the Ethereum blockchain. In addition, the rewards may also be nullified or amplified by changes in the ETH market price.
Currently, the protocol has 385,344 ETH locked up 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 Shanghai upgrade is scheduled for March, which would allow users to withdraw their locked ETH and accumulated rewards following the network’s successful transition to proof-of-stake last September.
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