Name of Grant
Using rETH as collateral to support preconfirmations with mev-commit
What is the work being proposed?
Primev, the organization behind mev-commit, proposes adding support for rETH as collateral for opting in validators. Validators can drive increased usage and adoption of rETH and increase yields by opting into mev-commit using rETH as collateral. Opting in is passive and requires no operational overhead or additional software. In addition to increased yield, we are implementing a points program that will reward validators for their support with bonus multipliers for early adopters and long term commitment to the network.
We propose Rocket Pool incentivize validators to opt-in by posting 1,000 rETH as collateral for the entire Rocket Pool Node Operator set.
The Primev development team will integrate rETH as a supported collateral type in the staking contract enabling validator opt-in to the mev-commit protocol. Our development team will also ensure our validator dashboard supports Rocket Pool node operators by delineating opt-in methods, registration processes, and trust assumptions.
In addition to development work, our growth team will support co-marketing and engagement with Rocket Pool validators to ensure the community is armed with information and understands the benefits of using rETH to opt-in to mev-commit. Our team will partner with Rocket Pool to co-develop or produce material for forum and research posts, documentation, and other relevant resources. We will also make our team available for community calls or via Discord, to answer any questions and help drive engagement.
Is there any related work this builds off of?
The proposed work builds off our current staking contract implementations, as well as our established validator dashboard with registration flows. Links below:
- Current validator registration protocol design and implementations
- Established validator dashboard
- Established registration flows
Will the results of this project be entirely open source?
Yes, all code will be open source as Primev builds in the open. Core integration code will be available in the mev-commit repository. Dashboard modifications will be publicly accessible. Technical specifications and integration guides will be public.
Benefit
The ability to use rETH for mev-commit generally increases the value proposition for staking with Rocket Pool and helps increase yields for existing rETH holders as well as Node Operators. Overall, this will contribute to enliving the Rocket Pool ecosystem and its competitive advantage vis-a-vis other validator communities. Specifically –
| Group | Benefits |
|---|---|
| Potential rETH holders | Increased utility and yield potential for rETH makes it more attractive as a liquid staking token |
| Additional revenue streams provide better value proposition for staking with Rocket Pool | |
| More use cases and integrations enhance rETH’s ecosystem position | |
| rETH holders | Higher yields through mev-commit integration without additional action required |
| Expanded utility of rETH through mev-commit staking contract integration | |
| Increased value accrual to rETH through validator rewards | |
| Potential for additional revenue streams through MEV optimization | |
| Potential NOs | Enhanced revenue potential makes node operation more attractive |
| Clear pathway to participating in MEV-commit with their validators | |
| Simplified onboarding through integrated dashboard | |
| Additional incentives through points system | |
| NOs | Immediate access to additional yield through mev-commit |
| No changes required to existing node operation | |
| Seamless integration through dashboard | |
| Recognition and rewards through points system | |
| Opportunity to increase returns without additional infrastructure | |
| Community | Growing ecosystem of rETH integrations |
| Enhanced competitiveness in liquid staking market | |
| Support for fast transaction experience within Ethereum ecosystem | |
| RPL holders | Increased demand for node operation could drive RPL demand |
| Growing ecosystem increases RPL utility |
Which other non-RPL protocols, DAOs, projects, or individuals, would stand to benefit from this grant?
mev-commit was started to address coordination inefficiencies among mev actors in an increasingly decentralized and complex transaction execution landscape. To that end, we’re building a neutral, chain abstracted, credible commitment network that enables composability and increased liquidity across the entire mev ecosystem. For everyone to benefit, validators and other providers must opt-in but also, ultimately, bidders such as searchers and solvers.
Work
- Integration of rETH as a supported collateral type for validator opt-in to mev-commit
- Development of validator dashboard support for Rocket Pool node operators
- Creation of specific user flows and documentation for Rocket Pool validators
- Implementation of point system rewards for Rocket Pool validators
- Co-marketing initiatives to drive adoption among Rocket Pool node operators
- Technical support for validators during rollout
Who is doing the work?
Primev, the founders of mev-commit, developers and growth/operations team members.
What is the background of the person(s) doing the work? What experience do they have with such projects in the past?
Primev, the organization behind mev-commit, was founded in November 2022 to address coordination inefficiencies among mev actors in an increasingly decentralized and complex transaction execution landscape. Our team, with experience at Blocknative operating a mainnet relay and block builder, developed mev-commit as an open source credible commitment network.
Regular interactions with transaction execution pipeline actors led to the creation of mev-commit. Primev has published extensive research on preconfirmations and is building mev-commit in the open, with plans to grow the network with the community through a DAO structure, which will present a governance voice for participating PBS actors including relays. We used validators staked in Holesky as a benchmark for market demand for commitment games and saw significant interest, modeling a 0.23% increase in total yield based on 30% higher bids for preconfs, bringing the potential staking yield from current ~3.2% to 3.43%. Since launching mainnet, we have formalized partnerships and continue to see demand as we work toward deeper mainnet adoption.
What is the breakdown of the proposed work, in terms of milestones and/or deadlines?
- Milestone – March 1st 2025
Completed implementation which integrates rETH as a supported collateral type for validator opt-in to mev-commit
- Milestone – March 5th 2025
Development of validator dashboard support for Rocket Pool node operators
- Milestone – March 10th 2025
Creation of specific user flows and documentation for Rocket Pool validators
- Milestone – March 15th 2025
Audit for aforementioned implementation is complete.
- Milestone – March 15th 2025
Completed implementation of point system rewards for Rocket Pool validators
Other ongoing initiatives to launch following the completion of milestones 1-5 and continue through the adoption of mev-commit by Rocket Pool validators. Co-marketing initiatives to drive adoption among Rocket Pool node operators. Technical support for validators during initial rollout, as well as beyond.
How is the work being tested? Is testing included in the schedule?
Testing is included in the above schedule. Prior to any public releases the Primev development team will follow best practices for testing and security. This includes:
- Unit testing throughout the test-driven development process
- Integration testing with external staking protocols (if applicable)
- E2e testing of the full opt-in flow for validators
- Audit of staking contract
There is a testnet available with various services, more information is available here Mev-commit Testnet - Documentation.
Security considerations prior to launch include:
- How/if the staking implementation integrates with external staking protocols
- How long auditing will take for any new code
How will the work be maintained after delivery?
- Ongoing support through Primev team
- Regular updates and improvements
- Community feedback incorporation
- Technical support for validators
- Documentation updates as needed
Costs
We propose Primev absorb development and co-marketing costs and all funding associated with this grant go toward incentivizing all Rocket Pool node operators to op-in. Entity-level staking is at 1,000 rETH, the cost for which we suggest Rocket Pool GMC authorize to benefit the whole Rocket Pool community.
What is the acceptance criteria?
- Successful deployment of rETH integration
- Working validator dashboard with Rocket Pool support
- Documentation and guides published
- Marketing materials and announcements released
- Initial validator set onboarded: >1,000 Rocket Pool validators
What is the proposed payment schedule for the grant? How much USD $ and over what period of time is the applicant requesting?
We propose holding the 1,000 rETH in a contract [equivalent of escrow] for incentivizing validators. It would need to be available in that contract by the end date of the last milestone in order for Rocket Pool validators to be able to opt in.
How will the GMC verify that the work delivered matches the proposed cadence?
Each of our milestones will have publicly available deliverables either on our Github or documentation site. Additionally we are happy to post progress updates to a dedicated forum post, as GMC wishes. For community support, this will be done in collaboration with the Rocket Pool team. Ultimately, the validator opt-in will speak for itself – if it doesn’t happen then there’s no incentivization payout.
What alternatives or options have been considered in order to save costs for the proposed project?
We are already determined to absorb costs related to development and co-marketing in order to preserve the entirety of any costs associated with this proposal for the necessary opt-in amount. The choice of opt-in method (vanilla, EigenLayer, or Symbiotic) affects the amount of ETH required and the capital efficiency of the process. In this case, our only leaver to drive down costs would be to restrict opt-in to a subset of whitelisted validators at 3 ETH per validator, rather than entity-level opt-in.
FAQ: Why do we need 3 ETH (or equivalent) per validator to opt-in?
Collateral is required to opt in to mev-commit for several reasons:
-
Staking Requirement: Validators need to stake ETH as collateral to participate in the mev-commit protocol. This stake serves as a security measure and incentive for honest behavior.
-
Capital Efficiency: The amount of ETH required depends on the opt-in method chosen:
- Vanilla staking: Requires standalone ETH stake (1 ETH on mainnet, 0.0001 ETH on Holesky testnet per validator pubkey).
- EigenLayer: More capital efficient as it allows reusing the 32 ETH already staked with the beacon chain.
- Symbiotic: Offers capital efficiency through ERC20 collateral in a Symbiotic vault.
-
Incentive Mechanism: The staked ETH is part of a reward and slashing mechanism. Validators can earn rewards for following the protocol and face penalties (slashing) for malicious behavior or failing to propose blocks from mev-commit registered block builders.
-
Protocol Security: The ETH stake helps secure the mev-commit protocol and incentivizes validators to include blocks built by mev-commit providers in the L1 chain.
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Commitment to Protocol: Staking ETH demonstrates a validator’s commitment to following the mev-commit protocol rules, including the relay selection rule.
Have you already been compensated by the RP protocol in any way for this work?
No
Conflict of Interest
None
Does the person or persons proposing the grant have any conflicts of interest to disclose? (Please disclose here if you are a member of the GMC or if any member of the GMC would benefit directly financially from the grant).
No
Will the recipient of the grant, or any protocol or project in which the recipient has a vested interest (other than Rocket Pool), benefit financially if the grant is successful?
Funds for the grant go toward Rocket Pool validators. This helps mev-commit help validators in your community opt-in and receive better rewards over time.