Overview
Rocket Pool is an Ethereum liquid staking protocol that uniquely prioritizes decentralization through permissionless node operation. Launched on mainnet in November 2021, it allows anyone to run a validator by depositing as little as 8 ETH (reduced from 16 ETH via the Atlas upgrade), with the remaining ETH sourced from the protocol's staking pool. Users who deposit ETH receive rETH, a value-accruing liquid staking token.
Unlike Lido's curated operator model, Rocket Pool's permissionless design means anyone with sufficient ETH and RPL collateral can become a node operator. This has created one of the most distributed validator sets in liquid staking, with over 3,700 node operators running approximately 30,000+ validators as of early 2026.
Rocket Pool's rETH uses a non-rebasing exchange rate model, where the token appreciates in value relative to ETH over time as rewards accrue. This design offers tax and composability advantages over rebasing tokens like stETH.
Smart Contracts
Architecture
Rocket Pool's architecture is modular, consisting of a network of upgradeable contracts managed through the protocol's DAO. The system includes minipool contracts (one per validator), the deposit pool for user ETH, and the RPL staking system for node operator collateral. The Atlas upgrade introduced 8-ETH bonded minipools and improved capital efficiency. The Saturn upgrade further refined withdrawal and distribution mechanics.
Code Quality
The protocol has been audited by Sigma Prime, Consensys Diligence, and Trail of Bits. The codebase is fully open source on GitHub with comprehensive documentation. Smart contract complexity is higher than simpler LST protocols due to the permissionless minipool system, which increases attack surface but enables true decentralization.
Upgradeability
Contracts are upgradeable through the protocol's on-chain DAO governance (pDAO). Upgrades require supermajority votes from node operators. The system employs a guardian multisig for emergency actions, with the long-term goal of removing this dependency entirely.
Security
Validator Security
Each node operator must post a minimum RPL bond (worth at least 10% of borrowed ETH) as slashing insurance. If a validator is slashed, the operator's bond absorbs losses before affecting rETH holders. This economic alignment is a core security feature. Operators run their own validator clients, promoting client diversity.
Operational Safety
The Smoothing Pool aggregates execution layer rewards across participating operators, reducing MEV-related inequality. Oracle nodes (a set of trusted Rocket Pool nodes) report validator performance and distribute rewards. The oDAO (oracle DAO) manages these reporting functions with a threshold-based consensus.
Track Record
Rocket Pool has operated since November 2021 without a critical smart contract exploit. The protocol successfully navigated the Shapella withdrawal upgrade. Minor issues have been identified and patched through the audit process. The minipool system's track record across thousands of validators provides confidence in its robustness.
Decentralization
Validator Set
Rocket Pool operates with 3,700+ independent node operators — more than any other liquid staking protocol. Operators are permissionless, requiring no approval to join. This creates genuine geographic and infrastructure diversity. Many operators are home stakers, contributing to Ethereum's decentralization goals. Client diversity is strong, with significant Nimbus, Teku, and Lighthouse representation.
Market Share Risk
Rocket Pool holds approximately 3-4% of staked ETH, posing minimal concentration risk to Ethereum. This smaller scale is a feature of its decentralization-first design but limits its competitive position against Lido. The protocol explicitly aims to complement rather than compete with solo staking.
Governance
The pDAO (Protocol DAO) consists of all node operators, each with equal voting weight regardless of stake size. This one-operator-one-vote model is uniquely democratic in DeFi. RPL token holders influence economic parameters but do not control protocol upgrades, which reside with operators.
Adoption
TVL & Growth
Rocket Pool holds approximately $2-3 billion in TVL as of early 2026. Growth has been steady but modest compared to Lido. The 8-ETH minipool bond reduction via Atlas significantly improved capital efficiency and operator onboarding. The protocol serves a dedicated community of decentralization-focused stakers.
DeFi Integrations
rETH is accepted on major DeFi protocols including Aave V3, MakerDAO, and Spark. However, rETH's DeFi footprint is notably smaller than stETH's, with less deep liquidity on DEXs and fewer collateral integrations. This is the primary adoption gap relative to Lido.
Market Position
Rocket Pool is the second or third largest Ethereum LST protocol by TVL, competing with EtherFi. It is widely recognized as the gold standard for decentralized liquid staking, attracting users who prioritize Ethereum's health over maximum DeFi composability.
Tokenomics
Token Overview
RPL is Rocket Pool's governance and utility token. Total supply is uncapped with a 5% annual inflation rate, distributed to node operators (staking rewards) and the pDAO treasury. RPL serves dual purposes: governance voting and mandatory collateral for node operators (minimum 10% of borrowed ETH value).
Fee Structure
Rocket Pool charges a 14% commission on staking rewards — higher than Lido's 10%. Of this, node operators receive the majority as compensation for running infrastructure and posting RPL bonds. The protocol treasury receives a smaller share for development funding.
Yield Sustainability
rETH yield derives from Ethereum consensus and execution layer rewards, identical to other ETH LSTs. However, because Rocket Pool operators earn boosted rewards on their bonded ETH, the yield passed to rETH holders is slightly lower than stETH (typically 2.8-3.2% APR). This is the cost of the protocol's decentralized security model.
Risk Factors
- Lower Liquidity: rETH has less DeFi liquidity than stETH, potentially causing slippage during large redemptions or depegs during stress.
- RPL Bond Risk: Node operators face RPL price exposure; declining RPL value can push operators below minimum collateral requirements.
- Smart Contract Complexity: The minipool architecture is inherently more complex than pooled staking, increasing audit surface area.
- oDAO Centralization: The oracle DAO is a semi-trusted committee; compromise could affect reward distribution.
- Adoption Gap: Lower TVL and integrations create a chicken-and-egg problem for growth.
- Inflation: RPL's uncapped inflationary supply may create long-term selling pressure.
Conclusion
Rocket Pool represents the decentralization ideal of liquid staking. Its permissionless node operation, 3,700+ independent operators, and one-operator-one-vote governance make it the most aligned with Ethereum's core values. For users who prioritize network health and trustlessness, rETH is the clear choice.
The tradeoff is scale. Rocket Pool's TVL, DeFi integrations, and liquidity lag meaningfully behind Lido. The higher commission rate and RPL bond requirement create friction for operators. rETH's smaller footprint limits its utility as DeFi collateral compared to stETH.
Despite these challenges, Rocket Pool plays a critical role in the staking ecosystem. Its continued growth — particularly through capital efficiency improvements and broader DeFi integrations — is essential for Ethereum's long-term decentralization.