Rocket pool DAO first of its kind. (Most Advanced DAO)

·

2 min read

— -In a nutshell, to become an Eth validator, you require two resources one 32Eth and the hardware required to run node software. If you only have one resource, then you can provide that resource you have to the Rocket pool and you will earn the staking reward.

— — -Deep dive To become an ETH validator you require 32 ETH which most people don’t have. Rocket pool allows you to become a validator with as little as 0.01ETH and earns you skating rewards.

Rocket Pool is designed to cater to two main user groups;

User1 — Eth provider Those that wish to participate in staking using as little as 0.01 ETH. You will transfer your ETH(min 0.01ETH) to the Rocket pool protocol on Ethereum. In exchange, you will receive rEth which will automatically begin earning staking rewards based on the performance of the entire decentralized network of node operators operating in Rocket Pool. This means rETH grows in value over time, while holders can utilize that collateral to leverage the wider Defi landscape while helping to secure the ETH2 network.

User2 — Node providers With Rocket Pool, running a node only requires a minimum of 16 ETH per validator vs 32 ETH outside of the protocol. Once you deposit 16 ETH, the protocol will assign you 16 ETH from users who are depositing ETH and receiving rETH. So as a node operator you are staking your own 16 ETH and 16 ETH on behalf of the protocol. hence you earn a higher ROI than staking outside of the protocol due to commissions earned.