Rocket Pool Rewards Claim Architecture
Node operators stake RPL alongside their ETH to secure user pool deposits. They also receive RPL rewards in exchange for providing this additional security to the network, the user deposit pool and the solvency of rETH. The structure and cadence for depositing and withdrawing RPL, as well as claiming rewards is detailed below.
Node Operators deposit RPL along with their 16 ETH when initiating validators. The RPL is not however staked to individual validators, instead it is democratised across all validators that a node operator is running. This means that as a node operator setting up 5 validators (16 ETH x 5 = 80 ETH), a minimum stake of 8 ETH worth of RPL (80 ETH * 10%) is required in order to instantiate these validators and begin earning rewards. The node operator may choose to deposit up to 150% of the value of their ETH stake in order to receive maximum RPL rewards and further protect the user pool from slashing. (Meaning for the 5 Validator node operator, they could deposit up to a maximum of 120 ETH worth of RPL)
Node operators can choose to top up their RPL stake at any time, up to the 150% bound. They may do this due to RPL price depreciation causing their overall collateralisation ratio to fall, or simply to increase their allocation of rewards proportional to the rest of the node operator group.
Rewards period: Proposed at one week.
Claims Period: 4 * Rewards Period (one month).
Once a node operator deposits ETH and RPL and begins running validators, they are required to wait until the start of the next rewards period (one week) to begin accruing rewards. This is essentially down to the technical implementation of the rewards architecture, in order to calculate the proportional reward for each node operator, we must know the number of operators and their respective RPL stake for the entire rewards period, meaning one cannot enter during a period, they are added to the queue and enter the pool at the beginning of the next.
Node operators are able to claim rewards accumulated via RPL staking once per claims period (currently proposed at four weeks ). After staking ETH and RPL for four weeks or more, they will be able to claim rewards on a rolling basis (always claiming the trailing period’s rewards). The cadence for claim periods is set at the time of initial deposit, and continues on the monthly basis.
There are three options when claiming RPL rewards:
- Claim rewards and re-stake to increase collateralisation.
- Claim rewards (withdraw only the RPL accrued as rewards).
- Claim rewards and withdraw stake (withdraw rewards plus an amount of staked RPL down to 10% )
Node Operators are able to withdraw RPL from the system once per period, after they have been staking for one period or more. They are able to withdraw RPL down to the 10% minimum collateralisation ratio. Once a withdrawal request is made, the withdrawal will be subject to a cooldown period of one period.
This cooldown requirement has been implemented for the reasons detailed below:
- To mitigate potential congestion issues caused by node operators constantly depositing and withdrawing RPL in order to maintain exposure to rewards whilst staying as close as possible to the minimum threshold (minimum capital requirement to access rewards).
- To prevent governance attacks caused by node operators acquiring (through flash loans and similar methods) large amounts of RPL in order to swing governance votes before dumping immediately after the vote.
- To allow governance time to react to any occurrences related to mass deposits/withdrawals which might endanger the stability or solvency of the network.
- To reduce complexity in the implementation of the genesis rollout of Rocket Pool’s staking and governance architecture.