The Terra community puts high value on decentralization, with many projects incentivizing staking with smaller validators to increase decentralization.
We should now extend this push for decentralization to Ethereum, where Anchor touches on ETH the most: at the staked ETH collateral.
Rocket Pool is a decentralized Ethereum Staking protocol that launched about 2 months ago. Compared to Lido, which is used currently for collateral (stETH → bETH), Rocket Pool already has around 60 times the node operators that Lido has.
In addition to offering stETH → bETH we should also offer rETH → bETH.
Infos about rETH are available in the docs: Staking Overview | Rocket Pool
Even though RocketPool has just launched recently, they are already widely trusted as being secure. They had multiple audits, multiple long-running betas, and had been building their product for several years now (In fact they had already built for the first version of when Ethereum was supposed to migrate to Proof of Stake a few years back).
Would love to hear the voice of the community on this.
We have only just started entering the ETH market for collateral.
This will increase the amount of ETH users awareness of bETH and Terra, and encourage trial by them.
It’s new but it’s also the only liquid staking solution I’m looking to use now. Would love to see this live.
Integration should also be fairly straightforward as rETH is an interest-bearing token as opposed to a rebasing one. Just holding it will accrue value in ETH.
While I"m not aware of specific metrics for slashing, you should know that all rocket pool node operators must put up at least 1.6 ETH worth of RPL as a bond. If a node gets slashed this RPL is used to pay the protocol and cover the loss. As such, the rETH token should never experience any impact as all the rare slashing events get socialized away.
I would love to see rETH added as collateral. I waited for rETH to stake my ETH because:
It appeared to be the most decentralised liquid ETH staking token available (as highlighted already by the 629 node operators already participating in the network)
It is an interest bearing token (rather than a rebasing token) which is useful for defi integrations and more tax efficient in some circumstances.
It has many safeguards to protect rETH holders - any slashing events would come out of the node operators ETH, or the node operators RPL insurance collateral, rather than penalising the value from rETH holders.
I can personally say that I would really like to use this integration, and in addition to encouraging decentralisation (at the node operator level and also in terms of diversity of market share amongst staking providers), I am sure it would bring in many new participants like myself to use bETH/Terra/Anchor.
Hi -
Great questions. As of this writing - none of Rocket Pool Node Operators have ever been slashed.
Additionally, the current status of the Rocket Pool Protocol has 1 rETH itself backed by 2 ETH (1 from the node operator, 1 from the deposit pool) and at least 10% RPL with the current median is closer to 40% and current avg at 78%
Thanks @danylostefan and @jasperghost for taking the time to answer. Those are definitely reassuring mechanism. I’m currently reading more into Rocket Pool’s docs to do some due diligence, but this integration so far has my vote of confidence.
I fully support this. More cross chain collateral on Terra makes sense and the decentralized nature of RocketPool aligns well with the values of Terra.
Abracadabra also has an RFC out to add an rETH cauldron.
The more utility these staked ETH derivatives have in the wider DeFi world the better. I was thinking of writing a similar proposal for StakeWise’s token (sETH2), as having the key players in liquid ETH staking all eligible on Anchor would be great to see.
One question regarding Rocket Pool - it is certainly impressive the number of validators they have spun up. What measures do they have in place to stop validators taking pool funds as hostage? i.e. refusing to close down their validators upon request to withdraw pool funds
