I. Project Overview
A. Introduction
Rocket Pool was designed with the Mauve Paper released by Vitalik. Rocket Pool is known as a decentralized network of PoS nodes based on Ethereum that provides ETH holders with a simple method that allows them to use the ETH tokens they hold to participate in the staking without operating their own nodes.
B. Background
Currently, Ethereum network is preparing the upgrade from PoW to PoS. In PoS network, the system requires the nodes to deposit a certain amount of deposit to participate in the network maintenance, and such a process is called staking. However, the barrier to entry the participation of staking is comparatively high, which allows participants to operate their own nodes and guarantee the security of their nodes etc. Rocket Pool aims at lowering the barrier and allowing more users to participate in the staking.
C. Targets
Pocket Pool aims at providing a decentralized network of PoS nodes for Ethereum 2.0, and thus provide a type of secure and easy-to-use staking service to ETH holders by lowering the barrier of entry for staking. Meanwhile, Rocket Pool also aims at improving the level of decentralization for the overall Ethereum network.
D. Features
- Low Barrier of Entry: There is no need for users to operate their own nodes, ETH holders may participate in staking by just entrusting their deposits to Rocket Poo
- Secure and Reliable: Rocket Pool adopts the mechanism of distributed node entrustment to guarantee security and decentralization.
- Highly Flexible: The users may select different staking methods such as Node Operator, Minipool and Pool, which allow users to participate in staking according to their own demands and risk tolerance.
- Abundant Rewards: Rocket Pool provides certain rewards for users who participate in staking, and meanwhile provides source of incomes for node operators as well.
Links：
- https://rocketpool.net/
- https://dyor-crypto.fandom.com/wiki/Rocket_Pool_(RPL)
- https://www.coingecko.com/zh/%E6%95%B0%E5%AD%97%E8%B4%A7%E5%B8%81/rocket-pool
II. Project Team
A. Team Members
The team of Rocket Pool consists of developers, marketing representatives and advisors from Australia and Europe. All members of the team have accumulated rich experiences in the industry of blockchain and cryptocurrency.
- David Rugendyke Founder & CTO
- Darren Langley General Manager
- Kane Wallmann Senior Solidity Engineer
- Nick Doherty Senior Blockchain Engineer
- Joe Clapis Senior Blockchain Engineer
- Maverick (Nick Ashley) Marketing & Community Manager
B. Background
The founder and core development team of Rocket Pool are from Australia. All members of the team have previous worked as technical and administrative staff for multiple companies and organizations in the industry and have accumulated many years of experiences regarding the development of blockchain and cryptocurrency.
C. Experience
All team members have accumulated extensive technical background and rich experiences in cryptocurrency. David Rugendyke, the CEO of the project, is a software engineer with many years of experience in the development of both blockchain projects and blockchain security. Darren Olive, the co-founder of the project, has accumulated more than ten years of software development and architecture design, and was once the technical lead of multiple companies and organizations. Known as the members of the project’s advisory committee, Kevin Owocki and Trent McConaghy are the big names in blockchain industry who have provided precious advice and support for Rocket Pool.
III. Technical Architecture
A. Blockchain Technology
1. PoS（Proof of Stake）
Rocket Pool adopts the technology of PoS (Proof of Stake). PoS is known as a blockchain consensus mechanism that replaces PoW (Power of Work). What makes PoS different from PoW is that PoS uses tokens to choose verifiers (also called “stakers”) instead of computing power. In the mechanism of PoS, token holders may lock their tokens on the network to obtain the qualification regarding the verification of stakes, and that the verifiers will obtain relevant rewards as well. PoS mechanism aims at improving the security of network, reducing the cost of calculation and accelerating the speed of transactions.
Links：
- https://ethereum.org/zh/developers/docs/consensus-mechanisms/pos/
- https://coinmarketcap.com/zh/alexandria/glossary/pow-vs-pos-what-s-the-difference
2. Rocket Pool’s Technical Architecture
- Rocket Pool Nodes
Rocket Pool nodes are the verifier nodes in Rocket Pool network, which are responsible for the verification of transactions and packing of blocks. The nodes of Rocket Pool communicate with the nodes of Ethereum and submit the information of verification to Ethereum network. The nodes of Rocket Pool may use any client end based on Ethereum such as Geth, Parity and OpenEthereum etc. The nodes conduct interactions with Rocket Pool’s “Node Management Contract” through smart contract and manage the process regarding the verification of their stakes.
Rocket Pool’s Smart Contracts
Known as the core component of Rocket Pool’s network, Rocket Pool’s smart contracts are used to manage the verification of stakes, distribution of nodes, staking and punishment etc. Rocket Pool’s smart contracts include the smart contract of node management, staking, lending and liquidity pool etc.
Rocket Pool’s Cross-Chain Technology
Rocket Pool’s cross-chain technology allows users to transfer their ETH and other ERC-20-based tokens to other blockchain networks in a cross-chain manner. The cross-chain technology aims at solving the problems of Ethereum network regarding network congestion and high transaction fees and providing faster and cheaper trading services. By utilizing cross-chain connection technology, Rocket Pool manages to interact with other blockchain networks through a centralized cross-chain connector.
Links：
- https://www.rocketpool.net/
- https://medium.com/rocket-pool/rocket-pool-101-what-is-rocket-pool-9b6d30c3695d
B.Technical Details
1. RPL Tokens
Rocket Pool (RPL) is known as a type of Ethereum-based token and the core token in Rocket Pool’s network. According to the introduction of Rocket Pool’s official whitepaper, RPL token involves many usages in Rocket Pool’s decentralized network, RPL token can be used as staking proof, for the provision of blockchain service, voting and the governance of Rocket Pool etc.
According to the data provided by CoinGecko, the current market cap of RPL token is approximately USD$ 217,554,222. On April 1st, 2021, the price of RPL was USD$ 8.37, and by March 1st, 2022, the price of RPL was USD$ 14.51, which has accumulated an increase of 73.6% compared with the previous year’s price. The total supply of RPL is 18,000,000, among which the volume of current circulation is 12,440,030.
- Incentive Mechanism
Considering the fact that Rocket Pool adopts the consensus mechanism based on Proof of Stake (PoS), staking is considered as the core of Rocket Pool network. The stakers obtain their RPL tokens by staking their ETH and obtain relevant incentives similar to miners’ incentives to maintain the network. The incentives may be either the service fee obtained through the services provided by Validator Node or the qualification regarding the participation of Rocket Pool’s governance through voting mechanism.
In the network of Rocket Pool, the stakers are required to lock a certain amount of ETH to obtain RPL tokens. According to the introduction of Rocket Pool’s official website, the stakers may select either full node or validator node as the method of their node operation for staking and obtain relevant incentives.
- Architecture of Smart Contracts
Rocket Pool’s architecture of smart contracts adopts Ethereum’s Solidity language. Rocket Pool’s smart contracts mainly include four aspects of contracts: Staking contracts, Minipool contracts, node contracts and DAO (decentralized autonomous organization) nodes.
Staking contracts are mainly used for staking ETH and obtaining the functions of RPL tokens. Minipool contracts are used to converge the ETH from multiple stakers and transfer them to one validator node. Node contracts are used to manage validator nodes and provide the online, offline and trading services of the nodes etc. DAO contracts are used for the governance of Rocket Pool network and the distribution of the assets in Rocket Pool’s DAO fund pool etc.
- Requirements Regarding the Operation of Nodes
In the network of Rocket Pool, before operating the nodes, the stakers are required to ensure that they meet certain requirements to guarantee the stability and security of the network. According to the official files of Rocket Pool, the nodes are required to meet the following standards:
- Requirements: Operate in Ethereum network, supports Web3.0 RPC Network
- Hardware Requirements: CPU >= 2 GHz， RAM >= 4 GB， SSD Storage >= 128 GB.
- Requirements on Operating System： Ubuntu 20.04， Windows 10（64 digits），macOS Big Sur or higher versions.
- The operation of nodes requires the use of Docker containerization technology. Hence, it is necessary to install Docker.
Meanwhile, Rocket Pool also provides a detailed instructions to help node operators to conduct quick settings and operate the nodes, please refer to the link below for the instruction: https://docs.rocketpool.net/guide/node-operators.html。
2. Node Selection
According to the official file of Rocket Pool, anyone can become the node, but for the guarantee of the network’s stability and security, the nodes are required to meet certain requirements. Specifically, the nodes are required to meet the requirements as below:
- Operate a complete Ethereum node.
- Hold at least 16 ETH as staking deposit.
- Possess sufficient hardware resources and network bandwidth to process the transactions and verify the blocks.
Apart from that, there are other extra settings and operations for the nodes to conduct for the convenience of interaction and communication with Rocket Pool. For example, the nodes are required to be registered in Rocket Pool Dapp and set certain parameters, such as the maximum idle time and maximum volume of staking allowed etc.
It is also very important for users to choose the appropriate node. Rocket Pool provides a ranking system of nodes, which helps users to choose reliable and highly efficient nodes. The ranking system is based on certain factors such as stability, performance and historical records etc. The users may browse and read the list and ranking of nodes in Rocket Pool’s Dapp and choose the appropriate node(s) according to their own needs.
Links：
3. Cross-Chain Function
Rocket Pool’s cross-chain function allows it to transfer and distribute ETH and RPL between and among different blockchain networks. According to the official file of Rocket Pool, the system currently supports two cross-chain functions:
- ERC20 Cross-Chain Transfers: The system uses Rocket Pool’s smart contract to transfer RPL or ETH to the target chain in a cross-chain manner through ERC20 bridge. Currently, Rocket Pool supports the cross-chain among its own chain, Polygon and Arbitrum chain.
- ETH2.0 Deposit Cross-Chain Transfer: Rocket Pool can transfer ETH into ETH2.0 Beacon Chain in a cross-chain manner, ETH2.0 Beacon Chain is known as the chain on which the PoS consensus will be conducted in the future. The users deposit their ETH into Rocket Pool’s ETH2.0 Pool, then further deposit their assets into ETH2.0 Beacon Chain through Rocket Pool, and finally the users will receive ETH2 tokens, which represent the users’ staking interests on ETH2.0. The users may obtain ETH2 on ETH2.0 without operating their own nodes.
The major advantages of Rocket Pool’s cross-chain transfer function is that the function allows the distribution and management of staking resources on different chains, which allows node operators to choose the best chain or network based on their own needs and maximize their profits. Meanwhile, the users may also conduct rapid and convenient cross-chain transfers through Rocket Pool, which provides them with further flexibility and choices.
IV. Tokenomics
A. Overview
Rocket Pool’s token RPL is known as a type of ERC-20 tokens that are used for the execution of payment, governance and incentive mechanisms in Rocket Pool protocol. Specifically, RPL tokens can be used in the following areas:
- Payment: The node providers are required to use RPL tokens to pay the access fee to the protocol and obtain relevant interests.
- Governance: RPL token holders may determine the upgrade of protocol and adjustment of parameters through voting.
- Incentives: The node providers will obtain RPL token as rewards to encourage them to maintain the security of the network and provide stable services.
The overview of RPL tokens is listed as below:
- Token Name：Rocket Pool
- Ticker：RPL
- Type：ERC-20
You may browse, explore and read further information of RPL tokens by visiting the web links below:
- Official Website：https://www.rocketpool.net/
- Whitepaper：https://www.rocketpool.net/whitepaper
- Coingecko web page：https://www.coingecko.com/zh/%E6%95%B0%E5%AD%97%E8%B4%A7%E5%B8%81/rocket-pool
B. Usages of Tokens
- Incentives For Miners
Rocket Pool Network Token (RPL) is known as the native token and the internal token of Rocket Pool network that aims at encouraging node providers to participate in Rocket Pool network and provide liquidity for them. In the network of Rocket Pool, the node providers may use RPL tokens as collateral to participate in the verification and node staking of ETH 2.0. Apart from that, the node providers may also obtain RPL tokens as rewards through the Dapp of Rocket Pool. By distributing a certain amount of RPL tokens to encourage the engagement and participation of node providers, Rocket Pool manages to ensure the security and decentralization of Rocket Pool network.
- Governance
The holders of RPL tokens are entitled to participate in the governance of Rocket Pool’s network, including raise and vote in favor of or against certain proposals. The rights of governance may include voting rights, proposal rights and the participation of the decision-making process of network governance etc. The rights of RPL token holders helps to ensure the long-term development of the network and improve community engagement. According to the official whitepaper of Rocket Pool, RPL holders will be able to raise, support and reject certain proposals through voting process, such proposals include technical updates, adjustment of network parameters and improve the level of network security etc. In order to participate in the governance, RPL holders are required to hold a certain amount of RPL tokens as prerequisite, which helps to ensure that only those users who really care about the future of Rocket Pool are allowed to participate in the governance of Rocket Pool.
- Risk Control
In order to be qualified for being one of the node providers for Rocket Pool, the potential node providers are required to hold a certain amount of RPL tokens as margin and risk control deposit first to ensure that all node providers can obey the rules and regulations of Rocket Pool network. In case that any node provider(s) violate(s) any rules and regulations of Rocket Pool, they will lose their RPL tokens as punishment, which helps to ensure the security and stability of Rocket Pool network and encourage the transactions of good faith among network participants. Meanwhile, the mechanism also encourages RPL holders to carefully focus on the development of Rocket Pool network and maintain the benign operation of the network.
- https://rocketpool.net/tokenomics
- https://docs.rocketpool.net/tokenomics/staking.html
- https://docs.rocketpool.net/tokenomics/governance.html
- https://docs.rocketpool.net/tokenomics/risk.html
C. Tokenomics and Token Distribution
Description
Volume
RPL is the token in the Rocket Pool protocol that will be migrated when the new V2 RPL token is launched. The token inflation is used to incentivize key players and fund future decentralized development. the RPL inflation is initially 5%/year and will be allocated to the following three areas.
Protocol DAO can change the RPL inflation rate in the future. The node operator’s RPL collateral amount is used to receive an inflation bonus, currently 10% of the value of ETH, capped at 150%. the RPL mechanism is used to drive several key areas of the protocol.
- Node operators use RPL as insurance to protect the rETH value.
- Performance margin for Oracle DAO members
- Protocol DAO governance.
For those of you who like to play with numbers, we’ve added this calculator here to help model out protocol economics . Feel free to have a play around with it yourself!
V. Community Engagement
A. Community Incentive Program
Rocket Pool encourages community members to get involved with Rocket Pool through incentive programs. Currently, Rocket Pool’s ongoing incentive programs include
Test Network Incentive Program: Nodes running on the Rocket Pool test network will have the opportunity to win test tokens as rewards, which can be used to pledge and trade on the Rocket Pool platform.
Governance Incentive Program: Users holding RPL tokens can contribute to the governance of the Rocket Pool platform by participating in voting, and these users will receive additional RPL tokens as a reward.
B. Community Events
Rocket Pool regularly hosts community events, including social media campaigns, tournament competitions, and more. Community members can earn rewards by participating in these events.
C. Community Contributors
Rocket Pool encourages community members to participate in building and promoting the project. Community members can earn contributor designations and rewards by submitting suggestions to Rocket Pool, participating in test networks, contributing to the project, etc. Rocket Pool also selects and recognizes outstanding community contributors from time to time.
Link：
- Rocket Pool Website：https://www.rocketpool.net/
- Rocket Pool Whitepaper：https://www.rocketpool.net/whitepaper
- Rocket Pool Medium：https://medium.com/rocket-pool
- Rocket Pool Twitter：https://twitter.com/rocketpool
- Rocket Pool Discord：https://discord.gg/DQYVz4Zugc
VI. Competitor Analysis
A. Competitor Overview
In the take track, Rocket Pool’s main competitors include Ethereum 2.0’s native take functionality and a number of other ETH 2.0-based take platforms, such as (as of this writing)
TVLs of each major competitor.
Some comparisons can be visualized.
B. Competitor Features
Ethereum 2.0’s native staking feature is widely used in ETH 2.0 networks, which enables higher performance and scalability through the PoS mechanism. lido is a decentralized staking service that allows users to participate in staking without having to run nodes themselves, while Staked provides a customizable staking solution.
C. Competitor Advantages
Ethereum 2.0’s native stake functionality is widely recognized and supported by the ethereum community, and its security and reliability are well-proven. lido and Staked attract users by offering some unique features and services, such as lido’s pledge derivative-stETH with stable anchoring and robust use cases and Staked’s customizable solution.
D. Competitor Disadvantages
Although Ethereum 2.0’s native stake functionality is widely recognized, it still requires users to run their own nodes, which can be a challenge for users who do not have the appropriate technical skills or resources. while Lido and Staked offer some convenient services, they also have some centralized elements, such as Lido’s review and selection of nodes although Both are governed by DAO, but there must still be some centralized elements.
E. Competitive Advantages of Rocket Pool
Rocket Pool’s main competitive advantage lies in its flexibility and decentralized nature; Rocket Pool provides multiple node options and token economy models, allowing users to choose staking nodes and participation methods according to their needs and preferences. At the same time, the decentralized and deconcentrated nature of Rocket Pool can also attract users who are more focused on decentralization and security.
VII. Market Applications
A. Industry Overview.
Rocket Pool is an Ethernet-based decentralized node storage and verification network designed to provide a secure and easy-to-use way to store and verify Ether (ETH) networks for Ethernet 2.0. The goal of the platform is to provide a secure, efficient and decentralized storage and verification service for general users and institutions, while providing an easy way for node operators to gain revenue.
B. Application Scenarios.
The main application scenario of Rocket Pool is to provide decentralized storage and verification services, making it easy for users to participate in the node operation of Ether and get the corresponding rewards. Meanwhile, the platform also supports other applications in the Ether ecosystem, such as DeFi and NFT.
C. Potential users.
Potential users of Rocket Pool include general users and organizations who want to participate in Ethernet node operations. In addition, there are also node operators and cryptocurrency investors who want to gain revenue from node operations.
D. Future Outlook.
With the release of Ether 2.0 and the increasing market demand for decentralized applications, Rocket Pool is expected to become a significant decentralized storage and verification network. In addition, Rocket Pool’s decentralized model allows for greater security and reliability, so the platform is expected to attract more users and node operators to join it. Finally, as blockchain technology continues to develop and mature, Rocket Pool also has the potential to expand its application scenarios and user base by collaborating with other blockchain projects.
VIII. Risk Analysis
A. Technical Risks.
Since Rocket Pool relies on the Ethernet infrastructure and PoS protocol, any technical issues related to Ethernet may negatively affect the operation of Rocket Pool. For example, congestion, vulnerabilities, and attacks on the Ethernet network may lead to the loss of node operators, which in turn may affect the stability of the entire network.
Rocket Pool also faces its own unique technical risks, such as vulnerabilities in smart contracts and whether the incentives for node rewards are sufficient to attract enough nodes to participate. In addition, misconfigurations and vulnerabilities in the clients interacting with Rocket Pool may affect the security of the system.
B. Market Risks.
Currently, the PoS model on the Ethernet network is not fully mature, and Rocket Pool is a new player in the market. Therefore, as the PoS model and competitors increase, the market may become more competitive, which may cause Rocket Pool’s share to decline or make it difficult to gain more users.
Price volatility in the cryptocurrency market may also have an impact on Rocket Pool’s users and node operators. Despite Rocket Pool’s attempts to mitigate this impact, this risk remains due to the volatility of the cryptocurrency market.
C. Policy Risks.
Because Rocket Pool’s operations are based on cryptocurrency and blockchain technology, it is subject to policy risks. For example, certain countries may ban or restrict the use and trading of cryptocurrencies and blockchain technology, which could negatively impact Rocket Pool’s development.
The regulatory environment for cryptocurrencies and blockchain technology is still unclear, which may also affect Rocket Pool’s operations and user engagement.
D. Competitive Risks.
Rocket Pool’s competitors include other PoS projects, decentralized exchanges, and others. As the market grows, competitors may increase, which may cause Rocket Pool’s share to decline or make it difficult to gain more users.
Competitors’ products, services, technologies and marketing strategies may also threaten Rocket Pool. For example, competitors may introduce more attractive incentives or a faster, more secure network of nodes.
IX. Summary
A. Project Advantages.
Rocket Pool is a decentralized ETH 2.0 staking solution that provides users with greater reliability and security.
Rocket Pool uses a mechanism called “minimum delegated volume” that allows even small users to participate in ETH 2.0 staking.
Rocket Pool’s node management mechanism eliminates the need for users to directly operate nodes, thus reducing the technical barrier and operational costs.
Rocket Pool’s token, RPL, can be used for a variety of purposes, such as paying fees and participating in governance.
B. Risk Analysis.
Technology Risk: The technical implementation and popularity of ETH 2.0 may affect the development of Rocket Pool.
Market Risk: Other similar ETH 2.0 staking solutions may squeeze Rocket Pool’s market share due to intense competition in the market.
Policy Risk: Policy risk may relate to regulatory policies and regulations for cryptocurrencies, which may negatively impact the growth of Rocket Pool.
Competition Risk: There are already many ETH 2.0 staking solutions in the market that compete with Rocket Pool.
Future Development Risk: As ETH 2.0 advances and evolves, future technology and market conditions may have an impact on the development of Rocket Pool.
C. Development Prospects.
With the advancement and development of ETH 2.0, more users are likely to participate in ETH 2.0 staking, which will provide a broader market opportunity for Rocket Pool.
Rocket Pool’s node management mechanism and minimum delegated volume mechanism allow small-scale users to participate in ETH 2.0 staking, which will further expand Rocket Pool’s user base.
As a decentralized ETH 2.0 staking solution, Rocket Pool offers higher reliability and security, which will also help it gain a larger market share in the market.
D. Investment Recommendation.
As of March 1, 2023, RPL’s price is $46.87. During the Initial Token Offering (ICO) in 2017, RPL was valued at $0.98. After this, RPL’s price remained relatively stagnant, moving sideways from 2018 to 2020. in February 2021, its price began to climb and peaked at $23.32 in May 2021. Its price then declined before rising again in August of that year. At the launch of its mainnet on November 9, 2021, RPL’s price reached an all-time high of $59.46. Its price then steadily declined after the overall cryptocurrency market experienced poor market sentiment.
In November 2022, RPL’s price traded between $15 and $20. In January 2023, RPL’s price rose sharply to $39.51 after it announced its listing on Binance. Looking ahead, PricePrediction believes that RPL’s price will be between $57.35 and $69.41 by the end of 2023. Its 2024 price could be between $82.73 and $100.31. In 2025, RPL prices are projected to reach between $119.83 and $146.97. By 2030, the RPL price is predicted to be between $762.92 and $933.09.
Rocket Pool is a potential project, but there are market and technical risks, so it needs to be invested with careful attention.
Before investing, one needs to carefully study the market situation and competitors, and evaluate the project’s technology and future development.
Investors can choose the right investment according to their investment needs and risk tolerance strategies and investment methods.
E. Where to buy RPL?
RPL can be purchased through several popular exchanges, including Hotbit. buying RPL through Hotbit is a relatively quick process that can be completed in just a few simple steps. The first step is to sign up for a Hotbit account (if you don’t already have one). After this is done, you can proceed to trade RPL / USDT spot pairs.
