Rocket Pool is the most decentralized major ETH liquid staking protocol, distinguished by its permissionless node operator model. Unlike Lido's curated operator set, any individual can run a Rocket Pool validator with as little as 8 ETH (of their own funds, with the remaining 24 ETH pooled from rETH depositors). This decentralized structure makes Rocket Pool a preferred choice for ETH holders who prioritize Ethereum's validator diversity.
The Minipool Architecture
Rocket Pool validators are called "minipools." A node operator provides 8 ETH (16 ETH for a "regular" minipool, or 8 ETH for a newer "8 ETH minipool") and receives the remainder from Rocket Pool's pool of staking ETH. The node operator earns standard Ethereum staking rewards on their 8 ETH plus a commission (5–20% of the pooled ETH's rewards) for their service.
To run a minipool, operators must also stake RPL (Rocket Pool's token) worth at least 10% of the borrowed ETH as insurance against slashing. If an operator is slashed (penalized for misbehavior), their RPL stake is used to compensate rETH holders before their own ETH is affected.
rETH: Non-Rebasing Price Appreciation
Unlike Lido's rebasing stETH (which increases in quantity), rETH is a non-rebasing token that appreciates in ETH value. When you receive rETH, the exchange rate is below 1 ETH (e.g., 0.95 ETH per rETH). Over time, as validators earn rewards, the ETH value of rETH increases toward and beyond 1 ETH. This accounting style is preferred by some DeFi protocols and tax regimes where rebasing creates complex accounting.
RPL Token
RPL has dual utility: insurance staking for node operators (required to run minipools) and governance over protocol parameters. RPL stakers who run minipools earn bonus RPL rewards on top of their staking commissions. The requirement to hold RPL creates natural buying pressure as new node operators join.
Rocket Pool governance has debated reducing the RPL requirement for node operators (to lower barriers to entry) while maintaining decentralization — ongoing proposals include "Saturn" upgrades that would allow pure ETH minipools without RPL collateral.
Decentralization Value
Rocket Pool's ~3,500+ active node operators across dozens of countries represent significantly more geographic and operational diversity than Lido's ~30 professional operators. This makes Rocket Pool a natural choice for ETH holders who want to support Ethereum's validator decentralization while still earning liquid staking yield.