With the fall of RPL price, the RPL value pledged by some nodes has fallen below the minimum requirement of 10%; for example, this node Rocket Pool Explorer
If the price of RPL continues to decline in the future and node operators do not increase the number of staked RPL, then the significance of RPL as insurance will be weakened.
This violates the interests of ETH holders; because they pay a 14% commission to the node; the node should ensure the smooth operation of the node accordingly, including sufficient RPL stake; therefore, I suggest that for stake RPL value less than 10% nodes; their commission rates should be reduced accordingly.
Node operators still have 8 ETH per validator that protects the yield for rETH holders. If a node is offline, penalties come from the node operator’s portion.
My concern with the ratio dropping is that it turns off new node operators who are only seeing the recent price movements in RPL. Tying commission to that 10% collateral may scare people away, especially if they aren’t familiar with RPL tokenomics.
We should design to be safe based on the primary ETH collateral. RPL still has a role there in that it can be live auctioned vs waiting for exit, but ETH is simply going to be far better for insuring ETH.
Fwiw, we already do reduce the total earnings of NOs under the threshold by having them ineligible for RPL rewards.
No. NOs have “bought in” with their minimum 10% collateral to receive commission. It is not their fault that the RPL price is declining.
I agree NOT to. The price drop of RPL is already penalizing NOs with both rewards and overall value
Is there even clear path to implementing something like this?
No. Beacon chain rewards are split as part of the minipool delegate contract, so a proposal to change the commission rate based on RPL stake would have to change that and such an upgrade would be opt-in. Since this proposal is strictly worse for the node operator, it is not viable to do on it’s own.
From a node operator’s perspective:
Due to the rise in RPL’s required amount with the new 8 ETH minipool, there’s increased risk in an otherwise ETH-focused portfolio. The bonding security provided by RPL is negligible. It’s unclear why the 8ETH bond isn’t sufficient, making RPL’s necessity seem contrived.
The steep incentives to expand the ecosystem are discouraging for operators who are short on RPL. They need to purchase enough to achieve collateralization and accommodate an extra minipool, even with an additional 8 ETH. This scenario becomes economically unfavourable and risk-laden quickly, making it a less attractive option.
Node operators in this predicament might find it more cost-effective to establish a new node, avoid a large RPL purchase, or wait for a new staking provider to launch or achieve more lindy.
This situation implies early investor node operators can continue creating more pools as rETH demand increases (because they might be still hugely up in their investment). Meanwhile, validators-centred operators may be discouraged from adding risk. This trend risks node operator centralization in the long term.
So personally I would love to run more validators, but I am not able to due to RPL and I am not willing to add more RPL risk to my portfolio. I can assume many NO are in a similar situation.
At this point, RPL collateral acts as a significant market entry barrier for new node operators especially. Like, if you want to stake the equivalent of one solo validator (32 ETH) with RP, you need to come up with an additional 9.6 ETH in RPL. This makes it highly unattractive for NOs, who want limited exposure to RPL.
*In comparison, Stader just recently launched their liquid staking protocol on mainnet. They allow for spinning up a 4 ETH bond validator with just 0.4 ETH in SD collateral. So you would only need 0.8 ETH in additional collateral for staking the equivalent of an LEB8 with 2.4 ETH in RPL.
*Just to make sure: I’m in NO way affiliated with Stader, nor am I using their products/services.
That’s a little too narrow a view… In both cases yiu have to ask yourself “what do I expect the value of this token to do”. If you expect them both to go to zero then the comparison is just a much larger fee. Ditto if you expect them to have the same relative trajectory. But if you expect them to have different trajectories then you need to include that.
My take on SD is that it’s got much less behind its value. This is a bit old, but see, eg
As a PSA: stader principal is secured by the node address (withdrawal address can be updated by the node address alone), which is a hot wallet for most users.
Thanks for sharing your perspective. How do you feel about borrowing RPL (e.g. on AAVE) since you don’t want RPL downward price risk?
Hi all, I am a new node operator that needs help/clarification. Last month I completed all tasks required to be a NO/Validator. I am currently waiting in queue(for another month) that I found on validator beaconcha.in. I tried to get help on discord connect via rocketpool and have been trying to get scammed every since from cryptofarmer1243. I still haven’t been able to connect to the group but it looks like its getting dissolved. I clued in when they sent me a link to update my wallet.
I now have two questions:
what is the real rocketpool admin or support? who do I contact or is everything talked about here? I would love for someone to connect with me on discord or email.
The other question looks like its being talked about but I don’t know what to do.
My question is; Why does my borrowed eth go up and down and it says undercollateralized, you must stake at least 13.835464 more RPL in order to claim RPL rewards. This has happened multiple times as I wait in line for over a month now. It keeps going up and down. remember, this is happening as I have completed all task and am still waiting. Do I really stake more RPL in order to get my validator beacon turned on? Do I ignore this because I’ve never pulled any RPL and my validator beacon will turn on with the RPL below the 10% threshold?
Discord is more active than here. So I’ll ping you in the discord SUPPORT. They can answer technical questions, otherwise for most questions you can ask in GENERAL. Don’t answer direct messages, most things are talked about in the public forum.
Thanks for your response but I still haven’t heard or connected with anyone from rocketpool. This date is getting closer and I still don’t have the answers. Will someone help me connect with the proper channel?
Are you in the rocket pool discord? Please post your question in the # support channel!
I just created a discord account a week ago for this but haven’t been able to find anything on there about rocketpool. what am I missing? it wont even connect me from rp website link.
You have to join the rocket pool Discord server; the link is on the bottom of the rocketpool.net website. I saw you had joined it previously but left the server for some reason. You may have to answer some questions when you join to prove you are not a robot (wick bot or something similar). That is your best option.
If you can’t get onto the discord server, we can try to answer your questions here.
Just to make sure you have answers…
what is the real rocketpool admin or support?
The closest thing is the #support channel in the discord. The people with orange or yellow names are team and a small set of recognized community helpful folks if you want a trustworthy source - but almost all suppoet work is done in the open.
Why does my borrowed eth go up and down and it says undercollateralized, you must stake at least 13.835464 more RPL in order to claim RPL rewards.
Your borrowed amount is constant; the value of the RPL fluctuates. If your staked RPL is below 10% of borrowed ETH value at the end of a rewards period, you’ll get no RPL rewards. Things will keep running fine and you’ll get the usual ETH rewards including commission. Your validator will start just fine.
Long term - the discord is 100% where you should be