Rocket Pool (RPL)

Liquid Staking

Rocket Pool lets users stake Ethereum (ETH) without needing the full 32 ETH normally required. Users can stake as little as 0.01 ETH and receive rETH tokens, which represent their staked ETH plus rewards. These rETH tokens can be traded, used in DeFi apps, or redeemed for ETH with rewards.

Node Operation

People can run nodes by staking 16 ETH (instead of 32 ETH) plus some Rocket Pool tokens (RPL) as collateral. Node operators earn commissions from staking rewards and additional RPL rewards for providing security and insurance to the network.

Decentralization and Accessibility

Rocket Pool lowers the barrier to participate in Ethereum staking by allowing smaller stakes and simplifying node operation. It supports a decentralized network of node operators, helping secure Ethereum while giving users flexible staking options.

Governance and Rewards

RPL tokens are used as collateral by node operators and give holders a say in the protocol’s future through community governance. Node operators earn commissions and RPL rewards, while stakers earn rewards through rETH tokens that increase in value over time.

Advantages

• Allows staking with as little as 0.01 ETH, lowering the barrier compared to the standard 32 ETH requirement.
• Enables users to stake ETH and receive rETH tokens, which represent staked ETH plus rewards and can be traded or used in DeFi.
• Decentralized and permissionless: anyone can run a node with 8 ETH, earning extra rewards in Rocket Pool tokens (RPL).
• Spreads losses across the network, reducing individual risk.
• Provides smoother and slightly higher APY by earning commissions and RPL rewards.
• Open-source smart contracts with multiple independent audits enhance transparency.
• Supports decentralization by allowing smaller players to participate in staking.
• User-friendly staking process with wallet connection and ETH deposit made simple.
• Community-driven support via forums and Discord.
• Compatible with Ethereum’s Proof-of-Stake consensus and liquid staking ecosystem.

Disadvantages

• Smart contract risk exists, though it may decrease over time.
• Running a node requires technical knowledge, hardware, stable internet, and maintenance effort.
• Minipool creation queues can cause delays (1-4 months) before staking rewards start.
• Converting ETH to rETH can be a taxable event in some jurisdictions.
• Exposure to RPL token price fluctuations for node operators.
• Slight complexity for users running nodes or migrating solo validators.
• Rewards may be slightly less than solo staking after accounting for commissions and fees.
• Some users find updates and setup increasingly complicated.

Overall, Rocket Pool offers a more accessible and decentralized way to stake ETH with lower minimums and liquid staking benefits, balanced by some technical and smart contract considerations.

Founders

Rocket Pool was founded by David Rugendyke, who is also the Chief Technology Officer (CTO). He started designing Rocket Pool in late 2016 and remains the original founder and visionary behind the project.

Key Team Members

Michelle Rugendyke serves as the Chief Administrative Officer and Administration Manager, supporting the leadership of David Rugendyke.

David Rugendyke is a senior Ethereum Solidity developer and has been the driving force behind Rocket Pool’s development and growth.

Investors in Rocket Pool

Rocket Pool has raised approximately $494K in funding. Some of the key investors include 1kx, Coinbase Ventures, FJ Labs, Struck Capital, and Consensys Mesh. The company has had multiple funding rounds, with Consensys Labs leading the latest seed round. Overall, Rocket Pool has attracted investment from at least 8 known investors.

Investor Types and Participation

The investors range from venture capital firms to blockchain-focused investment groups. Rocket Pool is supported by investors interested in Ethereum infrastructure and decentralized finance (DeFi) innovation. The project appeals to both institutional and individual investors who see potential in decentralized Ethereum staking.

Summary

• Total funding raised: about $494K
• Notable investors: 1kx, Coinbase Ventures, FJ Labs, Struck Capital, Consensys Mesh
• Funding rounds: multiple, including seed rounds led by Consensys Labs
• Investor focus: Ethereum staking infrastructure and DeFi innovation

Shariah Compliance

Rocket Pool is considered halal according to Shariah analysis by registered advisory firms like Sharlife. It operates as a decentralized Ethereum staking protocol that facilitates staking without involving interest (riba) or prohibited activities.

Reasoning

The protocol’s function is to enable Ethereum staking in a decentralized way, with node operators staking tokens as collateral, creating utility and accountability. It does not engage in activities forbidden by Islamic finance principles, such as interest-based earnings or haram business sectors.

Summary

Yes, Rocket Pool is halal because it complies with Islamic finance principles by providing a decentralized staking service without involving interest or prohibited transactions.