Cross-Chain Deposit To rETH

Grants / Bounties
1

Title:
Cross-Chain Deposit to RocketPool (rETH)

Why is this important for RP?

This will make it easier for users to participate in RocketPool from any chain and increase the total amount of ETH deposited on the platform.

Full Description

The project will involve building smart contracts and a frontend to enable users to deposit ETH from any chain, such as Arbitrum or Optimism. Once the ETH is deposited, it will be bridged to the Ethereum mainnet and deposited on RocketPool as rETH. The rETH will then be transferred back to the user, who can use it to participate in the RocketPool network.

I have previously written similar contracts for Lido (GitHub - Gajesh2007/OmniLido: Deposit ETH to Lido From Any Chain)

There are some trade-offs to consider, such as the gas fees associated with bridging funds between chains. However, we believe that the benefits of making it easier for users to deposit on RocketPool outweigh these costs.

Estimated cost (denominated in RPL)

This is a grant proposal. We estimate that the total cost of the project will be 170 RPL (~$10,000), which will cover the development of the smart contracts and frontend, as well as associated expenses such as gas fees, testing, and deployment costs. I will provide regular updates on our progress and work closely with the RocketPool team to ensure that the project meets their needs and expectations.

2

I see little realistic benefit here. Without such a feature, if there’s high demand for rETH on another chain that demand will translate to a price premium. Arbitrageurs will have incentive to bridge assets over to take advantage of the price disparity. Arbitrageurs are able to do this in large batches to spend less on gas as a percentage of the total. They may also opt to have reserves to allow them to do this “instantly” without having to wait for bridging.

Can you explain why you believe your solution would outperform arbitrage?

(as a side note, I should mention the GMC just closed a cycle and is not currently receiving grants)

3

Oh dang. Didn’t know the GMC closed a cycle.

How It Works:

  • People Deposit ETH on Chain B (for example, Optimism)
  • Our smart contracts bridge that ETH to Ethereum
  • Deposits the ETH on RocketRool
  • Transfers rETH to the user on Ethereum
4

I didn’t understand what you meant by arbitrage in this case.

5

Smart contract bridging is risky stuff. I’d rather we just have liquid bridges that have their own audits and bug bounties.

6

I’m curious why you think so.

Stargate doesn’t wrap assets. The money is going from Optimism to Ethereum in native ETH.

Also rETH isn’t wrapped.

7
  • Stargate is audited & well-tested & #1 bridge by volume & TVL