Ethereum staking protocol Rocket Pool upgrade completed! Running an Ethereum node now only requires 8 ETH.
With the successful completion of the Ethereum Shanghai upgrade last week, the well-known LSD protocol Rocket Pool also completed a product upgrade on the 18th to be compatible with the changes brought by the Shanghai upgrade, bringing more competitive features to their product. The most well-known Minipool feature of Rocket Pool has also been enhanced, with current users only needing to provide 8ETH to run an Ethereum node.
18 April 2023, midnight UTC
Atlas is ready for launch – get ready for a more powerful Rocket Pool:
✅Improved protocol efficiency
✅Higher node operator rewards
✅Greatly boosted rETH capacity
✅Still fully permissionless
👇Read on for all you need to know— Rocket Pool (@Rocket_Pool) March 31, 2023
Table of Contents
Introduction to Ethereum Staking Protocol Rocket Pool
Rocket Pool is currently the second-largest decentralized Ethereum staking protocol with a total value locked (TVL) of around $1.5 billion. By staking ETH on the platform, users can receive liquidity certificates called rETH, with the current total supply of rETH at approximately 240,000.
Although Rocket Pool's staking amount falls behind the leading Ethereum staking protocol Lido, which has a staking amount of around 6 million ETH, Rocket Pool has its unique feature called Minipool. This feature allows users to run an Ethereum node even if they hold less than 32 ETH.
Although users need to provide a certain amount of the platform's token RPL as collateral, this feature has proven to be a strong driver for protocol growth. Minipool was launched in November 2021, and the current number of Minipools has exceeded 15,000.
Completion of Ethereum Staking Protocol Rocket Pool's "Atlas Upgrade"
To accommodate the Ethereum Shanghai upgrade, Rocket Pool has completed the protocol's Atlas upgrade. This upgrade has minimal impact on the liquidity stakers of the protocol, who are holders of rETH, as they can still swap rETH on the secondary market or stake/unstake through the protocol.
The most significant impact of this upgrade is on the Minipool feature. Prior to the upgrade, a minimum of 16 ETH was required to utilize this feature. However, post-upgrade, the threshold for Minipool usage has been halved to 8 ETH, with Rocket Pool providing the remaining 24 ETH for those with less than 24 ETH. Additionally, a 16 ETH Minipool can be converted into two 8 ETH Minipools.
According to Rocket Pool's official statement, the earnings for an 8 ETH Minipool are 42% higher compared to independent stakers and 25% higher than a 16 ETH Minipool.
Furthermore, the gas efficiency of Minipool has improved post-upgrade, with a 40% reduction in gas consumption when creating a new Minipool. With the lowered threshold for creating Minipools, idle ETH can be staked more quickly, as accumulating 8 ETH is much faster than accumulating 16 ETH.
Lower Threshold, More Staked ETH
According to official data, post-upgrade, approximately 28,000 ETH has been staked due to the lowered threshold, and around 1,000 new Minipools have been created.
The flawless launch of Atlas has been a resounding success!
It marks a great step forward in Rocket Pool's mission to reduce barriers to entry for permissionless staking on Ethereum & contribute to its decentralisation
✅~28,000 new ETH staked
✅~1,000 new minipools launched— Rocket Pool (@Rocket_Pool) April 19, 2023
For those holding more than 32 ETH and contemplating between becoming an independent staker or using the current diverse liquidity staking protocols, they can refer to this article: "Staking ETH is a Must! Independent Staking vs. Liquidity Staking Derivatives LSD - Which Staking Method Offers Better Returns Based on Different Conditions?" This article assists in calculating the most profitable staking method based on individual circumstances.