Rocket Pool
Overview
Rocket Pool is a decentralized liquid staking protocol for Ethereum. It allows users to stake ETH and receive rETH, a token that accrues staking rewards over time.
Decentralization
Unlike Lido, Rocket Pool is fully decentralized, meaning anyone can become a node operator by depositing 8 ETH (plus 24 ETH assigned from the protocol) to run a validator. This lowers the barrier to entry for solo staking.
Token Utility
rETH can be used in DeFi applications while earning staking yield. The protocol charges a commission that goes to node operators, typically around 5-20%. Rocket Pool emphasizes decentralization and trustlessness, with no central authority controlling the node operators.
Risks
It is governed by the RPL token. Users can stake any amount of ETH and receive rETH instantly. Risks include smart contract bugs and potential slashing of node operators, but the protocol has been audited extensively.