From trading to investment, and staking, Cryptocurrency created an irreplaceable position in crypto enthusiasts’ minds. Staking emerged as a way to earn more profits, more cryptos, and more fun. One such tool emerging in the crypto ecosystem is Rocket Pool. As the name indicates, the pool is all set to lighten the lives of crypto holders in the future.
Introduction to Rocket Pool (RPL)
The Rocket Pool network was introduced by David Rugendyke, a senior developer in 2016. The network is a decentralized ETH staking pool offering a wide variety of services including liquid staking, and smart nodes, along with maintaining custody of funds.
Staking the ETH and earning rewards without locking the ETH. The platform allows users to earn up to 8.24% annually as staking rewards in the form of rETH tokens, which can be swapped at any time. In addition to this, Rocket Pool also offers node operators to verify and validate transactions over the network. With time, the platform expanded its roots in the crypto industry and emerged as one of the most popular and innovative decentralized staking solutions.
RPL is the ERC-20 native token of Rocket Pool and is mainly used to govern the Protocol DAO and staking. User depositing ETH, rETH tokens, BeaconChain, Nodes, and smart contracts are the major components of the Rocket pool.
What Makes Rocket Pool Unique?
Offering staking-related services is one of the most common functionalities of every staking pool, but what makes Rocket Pool an outstanding performer?
Here are a few facts to focus on.
The very first thing is its ability to eliminate the need to run its own node, which is in general challenging and time-consuming. In addition, the platform doesn’t hold any limit while staking tokens, which means individuals can stake any amount of tokens.
Ethereum’s native system on the other side requires at least 32 ETH for staking.
The pool also contributes users to become Rocket Pool node operators, allowing them to develop minipools with higher ETH staking rewards.
ETH Staking on Rocket Pool
After knowing the unique features and perks of staking with Rocket Pool, maybe you are interested in knowing the staking process. Let’s go through the procedure.
Connecting the Web3 wallet with the Rocket Pool staking application or website is the initial phase of the staking process. After doing so, the next step is to enter the amount of ETH to stake.
Hitting the stake button will help in initiating the staking process and requires a transaction confirmation. Once confirmed, the staker will receive an appropriate amount of rETH tokens. Now you are all set with staking, you can monitor the staking rewards in the balance section and enjoy the profit income. However, you need to keep in mind some of the risks related to governance and contract vulnerability.
What is an RPL Token and How to Buy it?
RPL, the native token of Rocket Pool, helps users earn commission from staking pool ETH and RPL rewards. The token is also available for governance and can be purchased using a simple buying process.
All you need to do is to open an account for free on one of the cryptocurrency exchanges supporting RPL tokens. Binance, Kraken, Uniswap, Coinbase Exchange, KuCoin, and HTX are some exchanges supporting RPL tokens. Considering factors like crypto support, transaction fees, and payment methods helps in choosing one of the best exchanges.
After going through the research and analysis, the next phase is to create an account and verify the same. Entering personal information, doing KYC, and uploading the Photo ID helps in validating the account.
To make a purchase, you need to deposit funds to the created account and this can be done in several ways like direct bank transfer, or credit/debit card. Connecting the card with the account, entering the amount, and waiting for the transaction is a simple process to adopt. In case you want to make a deposit using third-party channels, you need to visit the third-party app and methods available for money transfer.
After a successful fund deposit, you are all set to make a final purchase. Selecting the amount for which you want to buy the RPL Token and hitting the buy button will help in completing the buying process. The next thing to focus on is the token’s storage which can be stored in different wallets depending on the preferences. MetaMask and Rocket Pool Wallet are some of the good choices to make.
Conclusion
Rocket Pool Network made ETH staking much more effortless and efficient. The platform offers many benefits like a chance to become a Rocket Pool node operator and the elimination of the need to run one’s own node. Pool’s native token, RPL on the other hand, can be purchased from crypto exchanges and is used for governance and staking.
FAQs
What makes Rocket Pool unique?
Rocket Pool eliminates several barriers to entry that persist in the Proof-of-Stake mechanism on Ethereum for individuals, businesses, and groups.
What is the role of rETH in Rocket Pool?
rETH represents the token being staked and earning rewards with the PoS mechanism. It is Rocket Pool network’s liquid staking token.
What is the current price of RPL Token?
The current value of the RPL token is $27.14 with a total supply of 19,768,220 RPL and circulating of 19,768,220 RPL.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/11/10/what-is-rocket-pool-rpl-all-about-the-ethereum-staking-pool/