Hey @ken,
Thank you for the considered proposal.
The core team have discussed the idea and based on your numbers we agree that the time is right to increase the deposit pool limit to 5k ETH. I mentioned in Discord that I am keen for this to be the first official Snapshot vote. Once the vote is successful, we would update the parameter on mainnet.
We are scoping out what potential changes can go into the Atlas release and one or both of these are candidates:
The idea of using TVL to dynamically change the deposit pool limit is good because we would not have to update it manually and it enables a fixed impact on the rETH APR. The impact ratio could still be configurable by governance. This reduces the regular maintenance that governance has to do but still gives governance the power to tweak as needed. We would have to use the number of active minipools as a proxy for TVL but it is doable.
We have also discussed a change to the protocol, allowing a dynamic limit upwards from a base. Essentially what @Valdorff said. The idea is to have a min deposit limit (5k) but the limit increases based on the amount of ETH in the minipool queues. This way, the limit is based on Rocket Pool’s capacity and does not effect the APR further.
As we scope out Atlas we will know what we can fit into the release.