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ETH 2.0 Staking Will Now Be Easier for Retail Investors with Rocket Pool
Rocket pool has recently announced the launch date of its mainnet release as of October 6th, 2021, and the mainnet staking site will be open at 00:00 UTC for the public.
We all are much aware of the fact that to become an Ethereum validator, one needs to stake 32 ETH. But, what if the person doesn't have 32 ETH to deposit or the person isn't capable of running the node? Well, the launch of the rocket pool on the mainnet will remove all these hurdles for ETH2 staking, and everybody will now be able to stake ETH2 very quickly.
It doesn't mean that if you know to run a node, then you cannot use the rocket Pool for staking ETH2. The users can generate a higher return on their own staked ETH.
The protocol aligns with ethereum’s values of trustlessness and innovation and also gives everyone the means to participate in staking with any amount of ETH.
What do we know about Rocket Pool?
It is a base layer protocol for the trustless staking of ETH2, and it supports stakers of all sizes and shapes. The intent behind building Rocket Pool was to allow everyone to stake ETH trustlessly to a network of decentralized node operators.
What makes Rocket Pool different from the already available service providers for staking is the Decentralisation and Trustlessness.
What are the ways to participate in the ETH2 staking with Rocket Pool?
With Rocket Pool, you’ll have two ways to participate in ETH2 staking. One way will allow you to have all the benefits of staking rewards if you don't want to run the node, and the second way will help you earn higher returns if you're going to run and secure the node.
The first method is called the liquid tokenized staking with rETH. rETH is the token which you'll get after you deposit ETH into the Rocket Pool smart contracts, and it gains the staking rewards over time depending upon the node operators' performance. So, technically the value of rETH will grow with time, and the holders can also leverage the broader Defi landscape. Of course, you can trade or sell the toke if you want.
The second method is called Node staking, where you can earn a more significant ROI staking inside the protocol. Here, you can become a node operator in the Rocket Pool and then stake ETH without any fee to earn a higher ROI. Node operators can also earn rewards on their own staked ETH tokens.
The majority of the people do not have the technical skills to run a node. That is why it becomes crucial to create a protocol layer for the staking of ETH2. The rocket pool aims to bring together the spirit of Decentralized finance and Ethereum to allow self-sovereignty. The majority of the protocols of today's time have some sort of centralization around deposits. The launch of Rocket pool will bring the most decentralized staking protocol to stake ETH2, which is indeed an excellent thing for every investor.
So, even if you don't know how to run a node or have 32 ETH to stake, you can still participate in ETH2 staking with Rocket pool.