Rocket Pool Investor
Investing In Rocket Pool (RPL) – Everything You Need to Know
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Table Of Contents
Rocket Pool (RPL) is a next-gen decentralized staking protocol. The platform was built from the ground up to streamline ETH 2.0 adoption. As such, it introduces a host of helpful features to eliminate both the technical and financial roadblocks to user participation.
What Problems Does Rocket Pool Attempt to Fix?
Rocket Pool's 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 gain validation node capabilities. They also knew that the more people participating in the network's security and the better it is for everyone.
As such, Rocket Pool created a unique system that incentivizes network participants while lowering the minimum staking requirements in half. ETH 2.0 stakers are currently required to stake 32 ETH. Rocket Pool users can stake 16 ETH and become a validating node.
Another major issue that ETH stakers have complained about is hardware requirements. To become a staking node on ETH you need to have a solid internet connection. Every time your node disconnects from the network, you are penalized. Rocket Pool helps to solve this problem uniquely.
Rocket Pool spreads the losses across the entire lending pool. This strategy lowers the loss for everyone and enables users to participate in the validation and staking processes without worrying about their internet connectivity causing massive penalties. Consequently, more nodes can join from more areas of the world using this system.
Benefits of Rocket Pool
There are a lot of benefits that make Rocket Pool a cool platform to watch this year. For one, 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 staking requirements.
There are no gatekeepers preventing users from prospering. There are also no credit or background checks. You don’t need to provide any personal data which makes the entire process more secure and private for the entire community.
Liquid Staking on Rocket Pool
Liquid staking protocols are the main draw for DeFi users today. Rocket Pool users secure returns while leveraging an increasing exchange rate. This strategy has some advantages over rebasing systems. For one, it's designed to support tax reporting which can save you in accounting.
Another major plus for Rocket Pool is security. The network features an open-source code and the developers invite the community to review this system. Additionally, the platform has had the network smart contracts audited on numerous occasions with success. These features, combined with the network's redundancy and decentralized structure, make Rocket Pool a popular choice for users and developers alike.
Minimized Penalty Risk
Penalties are a major problem for stakers and network nodes today. In the Rocket Pool protocol penalties incurred by node operators get deducted from their earnings versus ETH holders directly. By socializing the losses it minimizes the financial damage you experience 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 via 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 non-custodial which adds to the protocol's overall security. Non-custodial platforms never require you to provide your funds. As such, you remain in control of your assets until the p2p trade executes. This style of staking protocol prevents losses due to a lack of access to your funds.
This strategy prevents hacks as well because the hacker would need to target you specifically rather than an exchange wallet. This structure is advantageous to Rocket Pool. For one, it means that Node operators never handle funds directly. Eliminating nodes from the custody equation streamlines the process considerably.
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 enables users to Deploy rETH across the entire scope of the Ethereum DeFi ecosystem to maximize yield.
The smart nodes software is one of the essential components of the Rocket Pool environment. This node software makes it easy for any group, business, or operator to maintain a node. It also enables you to stake your ETH and secure more returns. The software is free to download and leverage.
The RPL token is the main utility token for the Rocket Pool network. Users need to hold RPL to participate in the features of the system. You can stake RPL to secure passive returns. The token is also used as a rewards token which enables you to enjoy compounding returns.
When you stake your tokens, you receive the liquid staking token rETH. This token will increase in value alongside the liquidity in the pool. You can also trade this token or use it across the entire ERC-20 DeFi sector to secure additional ROIs.
Rocket Pool first entered the market as a concept based on the 2016 Mauve Paper. This document was already in use by Ethereum developers seeking to improve staking protocols at that time, but Rocket Pool took the concept further.
Rocket Pool was founded by Darren Langley. Before his work on Rocket Pool, he had +17 years of experience in the commercial sector. Today, he 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.
Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.
Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.
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 offers trading access to over 190 countries including Australia, Canada, Europe, and is our most recommend exchange for USA residents. (Excluding New York & Washington state)
Rocket Pool (RPL) – Support the ETH Community and Prosper
Rocket Pool has a smart strategy as there are a lot of long-time ETH holders who would love to take their tokens and secure returns. However, they never made it to the 32-token mark. Now they can put their ETH to work and start earning back some of the funding they lost on fees before the network's conversion to ETH 2.0. Consequently, you can expect Rocket Pool to see more adoption as ETH 2.0 is live and the community is responding well to the upgrade.
David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com
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