Rocket Layer - The Rocket Pool Eigenlayer Integration
What is the nature of the proposed bounty?
Enable Rocket Pool node operators to join the Eigenlayer network. This should be done while Rocket Pool retains senior debt, meaning Rocket Pool contracts are the withdrawal credentials from the beacon chain. The aim is for Rocket Pool node operators to participate in Eigenlayer activities and be slashed for misbehavior.
Must 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?
Yes, it will be fully open source.
Benefits - enter N/A where appropriate
| Group | Benefits |
|---|---|
| Potential rETH holders | This integration would enable greater throughput of rETH from the increased increased node operator demand, hopefully bringing rETH closer to its peg, rather than at a premium |
| rETH holders | The rETH holders will benefit from being able to delegate to operators within the Rocket Pool ecosystem inside of Eigenlayer. Currently, there are no options to do so, only professionals and solo stakers. |
| Potential NOs | This integration would be a massive incentive for individuals looking to start staking. Rocket Pool is one of the easiest ways to start and those looking to join Eigenlayer as node operators will likely consider Rocket Pool for the smart node’s UX over running a solo node to join Eigenlayer. |
| NOs | Individuals already running a node will gain the option to join the Eigenlayer network. Depending on what AVSs are available, this can expose the node operator to various new earning options. It’s important to also consider the risks involved. Operators will be using novel DeFi tech which inherently carries risks of smart contract bugs. This being said, I believe it is better that we give node operators the agency to make that decision for themselves in a way that protects Rocket Pool. |
| Community | N/A |
| RPL holders | The integration should increase the TVL of Rocket Pool and indirectly increase the value of RPL. |
What other non-RPL protocols, DAOs, projects, or individuals, would stand to benefit from the bounty being successfully completed?
Eigenlayer stands to gain as a result of this integration. The Rocket Pool node operator set is massive and would quickly scale the number of node operators they had if we were able to join. This would likely improve Eigenlayer’s marketability. Further, many dApps are looking to build on top of Eigenlayer and may choose to offer AVS services to Rocket Pool node operators. These dApps in turn would benefit from the increased pool of node operators.
Will the results of the completed bounty be open source?
Yes
Work and Verification
What steps would be entailed in completing the bounty? Do successful examples of such work exist elsewhere?
Design:
- Point RP withdrawal address
- Keeper network informs of minipool count changes
- Keeper network informs of RP penalties
- Ability to force exit - you want to be able to do that ASAP after RP penalties (you don’t have as much collateral) or Eigenlayer penalties (you don’t want RP penalties to supersede you)
- You’ll remain vulnerable to simultaneous penalties forever
- Their slasher and escrow stuff should work just fine for ETH; just pass the RPL through for ease, or consider using that as slashable too for efficiency
Work:
Stage 1: Build
- Smart contract to point the RP stuff at – mostly will be just like the solo one except for
- not giving full value to the validators
- pod already handles multiple validators, here it’s just packaged per node – might be a couple for loops to swap
- boot or revalue stuff based on keeper
- make keeper scripts in python or similar
Stage 2: Audit cycle
- complete an audit with feedback implementations with a reputable auditing firm discussed and coordinated with the GMC
- coordinate with the team at Rocket Pool and Eigenlayer for broad comments on the design and technicals
Stage 3: UX/ presentation
- Web page needs to handle the new thing you can add to a pod - for simplicity make it so a pod is either all solos or one RP node
- documentation needs to be written so that users can understand the steps of the process a la the Rocket Pool documentation
How long is the proposed bounty available for? Is it awarded to the first team to successfully claim it, or is it in some way divided among all such successful claims in the proposed availability period?
This bounty should be available for 2 months. During this period of time, any number of individuals can claim their intent to submit an MVP of the smart contract to the GMC for consideration. Applicants are encouraged to signal earlier so that cooperation is possible. Once the first submission is received, a 2 week window will begin in which others can submit their own MVP for consideration. At the end of the 2 week period, a single team will be awarded the 1/3 prize. The winning team can optionally then reserve the entire bounty for completion.
Who will test any products submitted for claiming the bounty?
The product should be tested considerably by the applicant before being presented to the Rocket Pool core team, ideally Kane and a senior engineer from Eigenlayer. Further, a reputable 3rd party auditing firm should be engaged with the coordination of the GMC and the bounty applicant. The costs of this audit should be covered by the GMC.
What is the acceptance criteria for awarding of the bounty?
This is a multistep bounty and so the acceptance criteria for each stage is as follows.
1 - Build the outlined contract to allow Node Operators to register with Eigenlayer and function like regular validators in their network including slashing. This ought to be verified with a core RP team member, ideally Kane, as a plausible solution.
2 - Incorporate feedback from the audit and the Eigenlayer team. Then, in coordination with RP and Eigenlayer, release the integration for public use.
3 - Create proper front end components as well as documentation to make the product easy to use and understand.
Payment
How much USD $ is the applicant requesting for successful completion of the bounty?
I believe the impact of this integration for the TVL and general value of Rocket Pool is immense. I’ve written on this topic elsewhere but generally I believe that Eigenlayer is one of, if not the only way, to exogenously increase the realized value of Rocket Pool. We can do internal upgrades to make rETH more efficient and node operation more attractive, but Eigenlayer is the first time that the Rocket Pool network can be used for new tasks. Further, I believe this is not a negligible task. The effort involved includes going through an audit cycle which can be extensive. I believe 3 months of work for a sr software engineer is a reasonable estimation of the time required for this project, or roughly 30-50k USD, split up over the checkpoints outlined above.
I believe 1/3 at each point is reasonable.
Conflict of Interest
Does the person or persons proposing the bounty 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 successful completion of the bounty).
I have no conflicts to report. Sreeram and I have chatted on occasion over the years. @Valdorff helped with some of the work/verification sections.
Will the applicant, or any protocol or project in which the applicant has a vested interest (other than Rocket Pool), benefit financially if the bounty is successfully completed?
No.