Rocket Pool proposes setting a cap on the staking ratio to prioritize Ethereum's health.

The liquidity staking protocol has recently shown excellent market performance, with Rocket Pool initiating a vote to decide whether the protocol should self-limit, thus prioritizing the overall health of Ethereum over protocol development.

Liquidity Staking Protocols Continue to Rise

The performance of Ethereum liquidity staking protocols beyond 2023 is as follows:

• Lido Finance LDO: $2.37 150%

• Rocket Pool RPL: $40.95 108%

• StakeWise SWISE: $0.16 77%

As of now, the Ethereum staking ratio is shown in the following chart:

Rocket Pool Proposal Sets Staking Ratio Cap

Initiator Valdorff's proposal includes:

• Rocket Pool prioritizes Ethereum's health

• Rocket Pool considers its impact on Ethereum in the long and short term

• Rocket Pool's growth should be based on improving Ethereum's decentralization, and should self-limit if Rocket Pool is detrimental

The proposal also mentions the proposed or to-be-implemented staking ratio caps by various parties:

• Vitalik: Increase staking pool fees after exceeding 15%, until the staking ratio is below 15%

• Ethereum developer Superphiz: Below 22%, can ensure sufficient validators in case of abnormal situations with a single staker

• StakeWise staking protocol: Will temporarily suspend user deposits if above 22%

Lido's Previous Vote Did Not Pass

Previously, a vote by Lido did not pass, with over 99% of community members voting against Lido's self-imposed limit proposal.

And concerns from Rocket Pool seem premature, as despite receiving over 99% approval, its staking ratio is only 2.29%, but has seen over a 50% growth compared to June last year.