Name of Grant
Smart Node v2 Exit Arbitrage Add-on
What is the work being proposed?
I propose to develop an exit arbitrage add-on for Smart Node v2 that automates arbitrage capture during operations that distribute ETH to the rETH contract. When a node operator (NO) issues commands such as minipool close, minipool distribute or node distribute-fees, the add-on will check if the module is active, notify the operator of potential arbitrage opportunities, and finally construct and submit the necessary bundled transactions. This project builds on the previous bounty (BA022310) and leverages the RocketpoolExitArbitrage tool. An optional extension would add arbitrage support for additional commands like minipool reduce-bond and minipool stake that indirectly distribute the node distributer.
Is there any related work this builds off of?
Yes, this work builds directly on lessons learned from the previous bounty (BA022310) and uses the existing Smart Node v2 infrastructure. I plan to reuse the contract deployed at 0x2631618408497d27D455aBA9c99A6f61eF305559, developed as part of that bounty.
Will the results of this project be entirely open source (MIT, GPL, Apache, CC BY license or similar)? If not, which parts will not be, why, and under what license will they be published?
N/A - as an add-on this will be published as part of the smart node.
Benefit
| Group | Benefits |
|---|---|
| Potential rETH holders | Enhanced price stability and improved exit liquidity at protocol rate, which can increase the demand for rETH when staking ETH. |
| rETH holders | Improved pricing stability through more consistent exit liquidity at the protocol rate. |
| Potential NOs | User-friendly add-ons lower entry barriers and can attract new node operators to the Rocket Pool network. |
| NOs | Access to real-time profit notifications and automated transaction bundling integrated directly into Smart Node v2, eliminating the need for external tools. |
| Community | Enhanced Smart Node capabilities that reduce rETH price discounts, contributing to a more robust protocol. |
| RPL holders | As RPL is closely linked with rETH, enhanced stability and pricing of rETH can indirectly support and boost the value of RPL. |
Which other non-RPL protocols, DAOs, projects, or individuals, would stand to benefit from this grant?
By reducing rETH price discounts, the tool minimizes exit liquidity concerns for DeFi integrations, potentially increasing the adoption of rETH in various protocols.
Work
Who is doing the work?
0xtrooper
What is the background of the person(s) doing the work? What experience do they have with such projects in the past?
I have previously developed the RocketArb For Closes bounty (BA022310), creating a CLI tool that has been used over 100 times. This experience provides a strong foundation for refactoring and extending the functionality into an add-on for Smart Node v2.
What is the breakdown of the proposed work, in terms of milestones and/or deadlines?
-
Milestone A – Core Integration & Functionality:
I will develop the exit arbitrage add-on, integrating it with key commands (minipool close,minipool distribute, andnode distribute-fees), and implement real-time profit notifications and bundled transaction construction. I estimate delivery within 1–2 weeks for submitting a PR to the Smart Node, assuming V2 is ready. As merging the PR depends on external factors, I cannot commit to a fixed deadline for that.- Optional extension:
This extension would extend the functionality for commands likeminipool reduce-bondandminipool stakeornode deposit, which only indirectly distribute ETH to the rETH contract, as they need to distribute the node distributer rewards. These arbitrage checks might not be deemed necessary, if requested, they would require an additional 1–2 days.
- Optional extension:
-
Milestone B – Megapool Support:
I will update the add-on to support megapool-specific arbitrage based on the finalized specifications. This phase should take approximately 2–5 days, as most of the core code will be reusable, with timing mainly depending on testing delays.
How is the work being tested? Is testing included in the schedule?
I will perform extensive testing on the Holesky testnet to ensure robust functionality and security.
How will the work be maintained after delivery?
I anticipate minimal ongoing maintenance. However, I will address any issues for a reasonable period post-release and provide thorough developer documentation for future reference.
Costs
What is the acceptance criteria?
A fully functional add-on that integrates with Smart Node v2, automating arbitrage capture as described.
What is the proposed payment schedule for the grant? How much USD $ and over what period of time is the applicant requesting?
The payment would be done after the Milestones are accomplished. I request the following amounts:
- Milestone A: $4,000
- Optional extension: additional $500
- Milestone B: $1,000
How will the GMC verify that the work delivered matches the proposed cadence?
Verification can be performed via progress updates, code reviews, and testing (eg. on Holesky).
What alternatives or options have been considered in order to save costs for the proposed project?
N/A
Have you already been compensated by the RP protocol in any way for this work?
This work is based on the bounty RocketArb For Closes (BA022310). Although some code will be reused, some refactoring and new features are required to convert it into an add-on. This also includes incorporating lessons learned from the previous project.
Conflict of Interest
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).
There are no conflicts of interest. I am an independent developer.
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?
No