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How To Stake Etherumn in A Group Pool
How To Stake Etherumn in A Group Pool
ETHERUMN IN A GROUP
POOL
STAKING BACKGROUND
• While there are many different options for group pooling the best one out there is called Rocketpool
• Rocket pool allows you to take 0.01 ETH or more in return rETH which is a tokenized version of your ETH
holdings
• You are also able to create your own staking pool in Rocketpool using their Rocketpool Protocol
RISKS AND ADVANTAGES WITH ROCKETPOOL
• One of the largest risks associated with staking ETH 2.0 is dishonesty.
• If pool operates decided to act maliciously it is possible you could loose your ETH entirely
• Having a group pool does allow for lower risks since any losses are felt across the entire group instead of
just one person.
• Rocketpool does run off smart contracts however, and getting an independent auditor to verify the
security of the pools will help with peace of mind when staking.
TOKENIZED STAKING AND RETURNS
• When you deposit ETH in RocketPool you get rETH which represents your own stake and your yield
• rETH also can be used in different DeFi Products and can even be sold in its current and future value
• One con though is that you will have your ETH locked up for an unknown amount of time until ETH
transitions to the next phase, but no one knows when that will be
CONCLUSION ON GROUP POOLING
• Overall if you have confidence in ETH long term, group pooling offers a great way to increase your ETH
amount while helping the network to transition over to Proof of Staje
• Rocket pool makes it very easy to get into group staking, and having a independent auditor verify smart
contracts helps to lower the risks involved.
• While your ETH may be locked up for a long period of time, the rETH token does help with increasing
liquidity of the process.