Rocket Pool (RPL) is a decentralized Ethereum staking pool that strives to provide a platform for ETH2 staking. It offers a unique approach to staking, allowing users to join the network with a decentralized node operator network or run their own nodes with only 16 ETH. Rocket Pool provides liquid staking, which means users participate in an increasing exchange rate rather than adding to their initial staked collateral. It also offers smart nodes, a custom node software that allows anyone to run a node on its network. This system is supported by the pool’s open-source and audited smart contracts, which aim to ensure fully non-custodial staking and a high degree of decentralization.

Rocket Pool operates on the principle of trustless staking of ETH to a network of decentralized autonomous nodes, underpinned by RPL collateral. It offers two ways of interaction: through rETH and Node Staking. rETH is a tokenized version of the staked ETH in Rocket Pool, which allows stakers to engage from 0.01 ETH to up to 32 ETH. By staking their Ether, users receive rETH in return, which automatically reflects the performance of the entire network of node operators. Node Staking, on the other hand, allows users to deposit 16 ETH and stake an additional 16 ETH on behalf of the protocol. Rocket Pool automatically adjusts its commission rate based on the supply and demand of node operators and available ETH.

Rocket Pool aims to make ETH2 staking accessible to anyone, regardless of their capital or level of technological sophistication. It can be used by individuals who want to participate in Ethereum staking but lack the technical skills or financial capacity to run a node or own 32 ETH. It can also be used by staking-as-a-service providers who aim to participate in the network by joining Rocket Pool and running a node. Furthermore, Rocket Pool's rETH token can be used by those who want to stake their Ether and participate in the performance of the entire network of node operators.

Rocket Pool was conceived in late 2016 by David Rugendyke, a senior developer with a computer science background. He was supported by General Manager Darren Langley, an executive with over 18 years of commercial experience in managing and mentoring development teams, designing application architecture, and delivering digital products for government and financial services. The team also includes three blockchain and Solidity engineers with a combined 40 years of experience. Rocket Pool has been live since October 2021 and has been successfully audited by three separate firms: Sigma Prime, Consensys Diligence, and Trail of Bits. It also runs a bug bounty program to incentivize keeping its protocol safe.

In contrast to traditional staking where a fixed amount of cryptocurrency is locked up for a certain period, Rocket Pool allows users to stake with as little as 0.01 ETH. It also presents two methods for staking: users can either stake and run a node with a minimum of 8 ETH or simply stake with 0.01 ETH and receive rETH tokens. The rETH tokens represent the staked ETH and can be integrated into various DeFi applications. This model seeks to offer non-financial benefits to stakers, allowing them to participate in other DeFi activities while their holdings are staked. Moreover, Rocket Pool's staking process is non-custodial, meaning if node operators do not behave honestly, they forfeit their non-financial incentives, but this does not affect rETH holders. This approach strives to offer a different approach to staking.

Rocket Pool aims to lower the barriers to entry, allowing users to stake as little as 0.01 ETH, and providing a network of decentralized node operators. These node operators run the Smart Node software, which communicates with Rocket Pool's smart contracts and provides the network consensus required by the Beacon Chain. This setup aims to provide fault tolerance, scalability, and protection against Quadratic Leaking, a term for how the Beacon Chain punishes validators for being offline. Rocket Pool also uses two tokens, RPL and rETH, to facilitate its operations and encourage adherence to network protocols among node operators. The RPL token is used for governance and as a form of protection against potential penalties or slashes, while the rETH token represents a tokenized staking deposit that accumulates non-monetary benefits over time.

The RPL token plays an integral part in the Rocket Pool ecosystem, serving as a governance token, a recognition token, and a form of collateral. As a governance token, RPL holders can vote on network development and operational decisions, thus playing a key role in both collateral and governance aspects of the ecosystem. As a recognition token, RPL is allocated to validators in recognition of their contribution to the network's operation. Lastly, RPL serves as collateral for validators. If they perform poorly or get slashed and lose their staked amount, the staked RPL is used to compensate for the lost ETH value. This threefold use of the RPL token is intended to support the stability and functionality of the Rocket Pool network and aims to contribute to the network's ongoing operation and stability.

For stakers, Rocket Pool allows them to stake with as little as 0.01 ETH, significantly lowering the entry barrier for Ethereum staking and inviting a wider range of participants. In exchange for their contribution to the staking pool, users receive rETH tokens, which represent the user's staked ETH. For node operators, Rocket Pool offers several benefits. Node operators are required to stake only 16 ETH to establish a validator node, which is half the amount typically required. This structure effectively halves the standard 32 ETH requirement for Ethereum staking. Node operators contribute to the network by processing transactions from the ETH staked in the pool. Node operators providing RPL (Rocket Pool's native token) as collateral may receive non-financial incentives. Rocket Pool strives to provide an accessible avenue for participating in Ethereum's network growth, benefiting both stakers and node operators.

Participating in decentralized staking on a platform such as Rocket Pool, like any other cryptocurrency activity, carries certain risks. One of the primary concerns is the reliance on Oracle Nodes for data synchronization between the ETH1 and ETH2 blockchains. If a majority of these nodes conspire together, it could potentially disrupt the system. Another risk is the potential for an rETH liquidity crisis. If for some reason people stop wanting to stake more ETH in the platform, it could lead to a lack of liquidity, making it challenging to convert your rETH into other forms of non-monetary rewards. As with any DeFi platform, there's the risk of smart contract failure. While the platform has implemented measures to mitigate risks, vulnerabilities or potential attacks cannot be entirely ruled out. Concerns have been raised about the potential for a 51% attack on the network, which could result in users bearing most of the costs. Understanding these risks is a part of the process of participating in decentralized staking on a platform like Rocket Pool.

Rocket Pool strives to manage slashing events and aims to enhance the security of staked assets through a combination of strategies. One of these is the use of a decentralized network of node operators who stake their own Ethereum (ETH) alongside users' ETH. This shared stake model is designed to encourage node operators to maintain the network's integrity. Rocket Pool also employs a unique token system, where users receive rETH tokens that represent their staked ETH and any non-monetary benefits. These tokens can be exchanged independently of the staked ETH, offering flexibility to users. In the event of a slashing incident, Rocket Pool has a system that aims to distribute any potential loss proportionally among all staked ETH, rather than impacting individual users disproportionately. However, it's important to note that while these measures can reduce the risk associated with staking, they cannot eliminate it entirely. As with all forms of cryptocurrency staking, it's important for users to understand that there are potential risks involved.

Rocket Pool has implemented several measures to encourage responsible and secure node operation. One measure is the provision of a detailed guide that aims to help secure your node against potential threats. This guide includes essential actions that should be taken and additional actions that could be helpful but are not mandatory. It also contains information on how to secure your client machine, which is important as a compromised client machine could bypass most security settings applied to the node. Another measure Rocket Pool encourages is the use of SSH keys for remote login instead of a username and password, which aims to reduce the risk of brute-force attacks. It also provides instructions on how to disable password-based authentication entirely, making SSH keys the only remote login option. Rocket Pool has implemented a system for automatic security updates that strives to keep your system regularly updated with the latest patches. It also encourages the use of a firewall to prevent any unexpected or undesirable traffic. Rocket Pool offers measures that aim to protect your server from DDoS attacks and brute-force connection attempts through the installation of fail2ban, a program that monitors incoming connections and blocks IP addresses that try to log in with faulty credentials repeatedly. These measures are intended to provide an environment for node operation on Rocket Pool, with the intention of maintaining the integrity and security of the network.