I try to live life versus hanging around telegram all day trying to keep up with all my token news
I noticed the pool no longer has any liquidity left
- How do I claim my staking rewards Ive staked since day 1
Thanks
You can swap rETH for ETH on a decentralised exchange such as Balancer or Uniswap.
Note, you should double check the ratio of rETH to ETH as it can vary between third party exchanges and compared to the official protocol rate on the Rocket pool site.
At the time of writing it is trading at a slight premium so you get slightly more ETH back from trading on an exchange than by unstaking directly.
It is best practice to confirm the authenticity of links from multiple sources.
Exchanges:
https://app.balancer.fi/#/trade
https://app.uniswap.org
Price aggregators such as 1inch can be also be used to find the best rate between exchanges:
https://app.1inch.io
What happened to the liquidity
As staked ETH is locked on the beaconchain until withdrawals are enabled (likely in the first hard-fork post merge), liquidity for unstaking rETH currently comes from new deposits into the pool waiting to be matched with a node operator.
There is currently a queue of these node operators waiting for matching ETH to launch Rocketpool validators and they get preference over people looking to unstake, so any newly deposited ETH is reserved for this purpose until they are all matched.
You can see the history and current stats of the deposit pool here:
https://rocketscan.io/depositpool
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Uisce, Can you help me with a small technical question related to this topic? Why on May 10 the deposit pool dropped to zero and only returned to the current values ​​of 5,000 in September? Was it some bug? I think it has nothing to do with the merge that would take place just over a month after this date. Thanks in advance.
May 10th was when Lido’s staked ETH (stETH) lost it’s peg in a liquidation cascade as institutions holding stETH were forced to sell their leveraged positions following the collapse of Terra/UST
https://dune.com/queries/829834/1450267
https://www.nansen.ai/research/on-chain-forensics-demystifying-steth-depeg
At the time, the vast majority of rETH liquidity on decentralised exchanges was held in a curve pool paired with wstETH (wrapped Lido staked ETH).
As stETH lost it’s peg, it became a profitable arbitrage opportunity to trade wstETH for rETH on the market through this curve pool and then burn that rETH for ETH from the deposit pool whenever any was available.
There was also a vastly increased node operator supply around this time (May 25th) due to the “whale-marriage” a partnership between the largest RPL holder and a large ETH holder designing a splitter contract that allowed them to pool their resources and a create large number of minipools.
Here is one of several such nodes:
https://rocketscan.io/node/0x663cbbd93b5ee095ac8386c2a301eb1c47d73aa9
This caused a queue for node operators waiting for matching ETH from the pool before they could launch validators which kept the deposit pool at zero and persisted for quite some time.
Thank you very much. I haven’t been working with crypto for a long time so many doubts arise. So the drop in the deposit pool was a mix of an arbitrage opportunity and a minipool offer? Is there any chance that events like the FTX one last week could cause losses for rocketpool users (besides normal market swings) and all value be lost? Thank you again!
Understandable, it has been a stressful week for everyone in the space.
Centralised institutions profit on assets by lending them to 3rd parties, such as hedgefunds or large scale investors who then use these assets to either open short positions, hedge or provide liquidity for their users. If they’re operating earn programs they then give you a % of the revenue they earn from these loaned assets. Issues arise when these 3rd parties fail to repay their loans.
Rocketpool does not loan out any ETH, nor can anyone access ETH which has been deposited.
Every rETH represents actual ETH locked on validators on the beaconchain, rewards come from new ETH staking emissions and this can all be tracked transparently on-chain.
The only way rETH can lose value is if validators go offline and remain offline or act in malicious ways and are slashed. However in either of these cases the node operator responsible loses their bonded ETH first (16 which matches the 16 for the pool) and if that is exceeded they lose their RPL collateral (minimum 1.6 ETH) per 16 ETH.
That being said there is always the risk of unforseen bugs associated with smart contracts, however the Rocketpool team takes security very seriously and no piece of code hits mainnet without examination from a top tier audit company.
Thank you, all this information was very useful and I learned a lot from it. A friend who works with me pointed out a fact that I couldn’t explain in the Rocket Pool documentation and I’ve just started with Lido. Why is the value of rETH higher than stETH and ETH? Even at the height of the crisis in May and June, the discount on rETH was smaller than on stETH. If you can point me to a path to this answer I would be grateful. Thanks for the explanations.
If you have questions, come join us on discord: https://discord.gg/rocketpool
Copy-pasting from a standard discord reply…
First, Lido is not decentralized
- Fewer than 30 node operators (vs RP’s 1400 node operators; though those may be run by more like 900 separate entities)
- Their top 11 non-treasury wallets have 50.5% of all voting power
– See Lido DAO price today, LDO to USD live, marketcap and chart | CoinMarketCap - For RP, the top 13 voters control 12.1% of voting power
– Only RPL staked on nodes can vote; this increases the cost of governance attacks since proportional ETH must be purchased and minipools need to be created, which takes time
– Voting power is proportional to square root of staked RPL
– Used 13 instead of 11 b/c 3 of the top 13 are controlled by one entity
– See https://rocketscan.io/snapshot/votingpower for more details
– Note this comparison is challenging in details – an individual can hold multiple wallets, or one multisig can be held by multiple individuals. Also, I don’t have clear info on LDO delegation. Nonetheless, the high level is a reasonable comparison.
Second, we are permissionless
- Anybody can be an NO. For Lido, you must get added to the permissioned list, which happens more or less through opaque magic
Third, they have bigger tail risks
- before forced exits
– their node operators have massive economic temptations
– they can opt never to exit the validators and steal all the MEV+tips; RP NOs have a large personal stake to make this unprofitable
– they could threaten to slash all validators unless paid a ransom; again, for RP NOs would suffer the damage to their personal stake instead - even with forced exits
– regulation: there are a small number of entities and each is working with a ton of money. If enforcement of any kind is attempted vs liquid staking, it’ll start here
– governance: a single digit number of wallets has enough voting power to do whatever. Eg, prevent withdrawals and set commission to 50%. There’s a dual governance idea to prevent this, but (a) it requires a lot of money to veto a vote and (b) it’s not implemented yet. Due to (a), only truly egregious steps might be blocked, but a series of tiny steps to the same destination may not be.
– governance2: if governance votes for something unethical/illegal (eg, multiblock MEV by manipulating oracles), NOs may refuse. What happens? Likely some kind of governance crisis.
– dominance: Lido has explicitly voted against self-limiting with over 99% vote power. Some important figures in the ETH universe have commented on this as a danger, or even an attack on the blockchain. Depending on how this evolves, community or dev response presents a risk.
Finally, Lido have a core conflict:
- If they control NOs, they are a monolith
- If they don’t control NOs, NOs can go rogue
There are no other options.
Why is the value of rETH higher than stETH and ETH?
This is due to a difference in design approaches regarding rewards.
stETH is a rebasing token, this means that the quantity of stETH can change in your wallet as you earn rewards while the value of each stETH is supposed to track the value of ETH 1:1
rETH works differently, the quantity of rETH you are holding in your wallet does not change but the value of each rETH increases relative to ETH over time as more staking rewards accumulate.
Thank you very much friend. Very elusive. And thanks for the discord tip!
Was that I thought, when I read rps docs. Thanks again!!!