What happens in case of SEC attack or similar event

1

Dear Rocketeers!

it appears that Rocketpool, along with other ETH staking providers, seems to ignore the elephant in the room. It is not a question of if, but when the SEC or some other criminal organization is going to attack the DAO and Rocketpool as a whole. It has happened before, it will happen again. OOKI dao is an example. p2p, Rocketpool, Lido, no one is safe.

This is only an ETH issue, due to the fucked up staking mechanism. With ADA for instance, one can just redelegate, so if one pool is attacked, I just redelegate to someone else. Planet is big. Almost any POS crypto just needs a few mouseclicks to redelegate or undelegate, and if necessary, this can be done directly sending commands to the network. Not with ETH due to idiotic slashing and validator key mechanism from hell.

So one day we will log into the website and it will either say, seized by XYZ or some pop up, explaining how you will have to provide KYC in order to use the website again. Sorry sorry we deeply regret but are forced to do this, blablabla, ETH=security, MICA, VASP, blablah. Some shit like that. Sufficient examples exist.

Documentation may be gone, support channel gone, just like Tornadocash. Subpoena served to DAO forum, just like OOKI dao

One doesnt have to be a prophet to see this coming.

So the one question that no staking pool wants to answer: how do stakers get there money out? Dex liquidity will dry up, rETH depeg. Then what? Can someone explain this? This should be THE most prominent document for all staking providers, just like the emergency button in an elevator!!!

All I gather is that the validators are supposed to be motivated to exit due to reth/ETH mismatch. Right…but there are all those smart contracts in between. I do not completely understand, so let me put it in simple terms: could Rocketpool, when held at gunpoint by some entitiy, prevent rETH/ETH from repegging, can the smart contracts be stopped somehow? IS THE MECHANISM TO REDEEM RETH INTO ETH REALLY UNSTOPPABLE?

I gather that the large number of validators are decentralized enough, so I would use Rocketpool even though it does not provide validator key. That part seems fine. But when the shit hits the fan and Rocketpool devs are being arrested, will stakers still get their money out in a permissionless manner?

Sorry for the paranoia but it is in order in this day and age. Staking is for the long term and I would be extremely surprised if staking pools are not getting hit over the next 1-2 years. This must be addressed.

Cheers
cryptobird

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just to amend, if the stakers would have the validator key this would not be an issue either since an exit message could be issued directly against the network right? But so far I do not know a staking provider who does this. Solo staking (with slashing risk) is not an option, blox is providing validator key but at the same time requires stakers to have a cloud account. Yeah, absolutely perfect privacy, getting cloud account at amazon for hosting validator key. They are a bunch of clowns.

And ether.fi is vaporware, and may have teething problems for another few months, so really I do not know any truly decentralised, unstoppable permissionless staking option for ETH. Rocketpool is best compromise I found but still:

So again what is the emergency button here at Rocketpool and will work 100% no matter what, as long as ETH chain is running?

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If you’re assuming a consensus of the oDAO has gone rogue (for whatever reason), stuff can be stopped. The near term protection is a “diverse enough” set of members. Long term, we can hopefully ossify things, but we’re not there yet.