Rocket Pool's Ethereum staking service reaches $1B in TVL

According to data from DeFiLlama, Ethereum staking service Rocket Pool reached $1 billion in total value locked (TVL) on Feb. 9. The move comes less than two years after the decentralized finance (DeFi) launched its mainnet on Nov. 9, 2021. Dubbed a liquid staking solution for Ethereum (ETH), Rocket Pool allows users to join an Ethereum decentralized node operator or run their own node.

Unlike conventional staking solutions, the capital requirements are far less as users can run their own node with just 16 ETH as opposed to the network specified 32 ETH, with another 16 ETH coming from a pool of users who join an Ethereum decentralized node operator. For the latter, the deposit requirement is only 0.01 ETH. Depositors receive liquid staking token rETH in exchange for their ETH, which proves the user is entitled to staking rewards over time and accrues yield.

In exchange for validating transactions on the Ethereum blockchain, Rocket Pool node operators receive up to 7.26% per annum, while stakers receive 4.68% per annum. Both rates are variable and are subject to node demand and supply, as well as transaction volume on the Ethereum blockchain. In addition, rewards may also be nullified or amplified by changes in the market price of ETH.

Currently, the protocol has 385,344 ETH staked and 2,068 node operators. Rocket Pool's smart contracts have been audited by Sigma Prime, ConsenSys, and Trail of Bits. The project also has a bug bounty program facilitated by Immunefi. As told by Ethereum developers, the Shanghai upgrade is scheduled to come online in March, which would allow users to withdraw their staked ETH and accrued rewards after the network's successful transition to proof-of-stake last September.