The release of Ethereum 2.0 has piqued everyone’s curiosity in staking their current crypto holdings for a profit. Staking Ether requires more than just depositing money and watching your gains grow. You will need third-party solutions.
Rocket Pool makes it possible for anybody to participate in the development of Ethereum.Without the need to setup and manage a node. This allows for the easy onboarding of new Ethereum 2.0 users and allows users with less technical skills to join in with staking.
Staking isn’t for everyone, especially considering that Ethereum’s slashing mechanism makes it easy to lose money for acting maliciously, even if it is unintentional. Rocket Pool is the most popular staking pool.
Learn more about Rocket Pool, a decentralized Ethereum stake protocol. This guide also explains how you can swap Rocket Pool with CoinStats.
Let’s dive in!
What Is a Pool of Water?
Rocket Pool, a decentralized network that provides Ethereum 2.0 Blockchain validation services, is an example of a network. This network provides access to users with a minimum amount of ETH tokens and those without technical skills to run a node.
Instead of depositing 32 ETH minimum, investors may stake their capital with 16 ETH. Rocket Pool is able to automate the whole process without user involvement and can manage all validators.
Even though they may use Rocket Pool to secure their stakes, Ethereum investors looking for long-term investment are required to lock up the tokens. Once staked, all assets are locked until Ethereum’s proof-of-stake implementation reaches Phase 2.
Rocket Pool is unable to override such a lockup. However, it can balance risk by tokenized staking.
A stake of 16 or 32 Ethereum is awarded to the user with the token rETH. This token represents both stake and yield. Like any ERC-20 token staked, stakeholders have options to use rETH even if the assets are not in their possession. This includes selling, using on DeFi platforms, and storing them in cold storage.
RPL Tokens & Tokenomics
RPL is an ERC-20 token that serves as the protocol’s primary token. Users who want to strengthen the project’s security can stake it on Rocket Pool nodes. To run a Node, however, this is not necessary.
Rocket Pool members who place RPL with at least one minipool validater earn an additional commission depending on how large their security deposits are. The user will lose his RPL deposit if he fails to complete his tasks, or if he has less than 32 ETH because of slashing.
RPL is limited to 18 million tokens. 16 million are in circulation. According to CoinStats, the asset’s market cap is $496.8 million at a price of $31.08 per token at the time of writing.
The coin has speculative value as well, as investors bet on the project’s future success as a prominent ETH2 staking platform. RPL has increased from $0.4 to 2.81 by 2020. RPL’s value soared to an all-time record $58.40 in 2021.
How to swap Rocket Pool on CoinStats
The built-in Swap tool allows users to swap cryptocurrency tokens over CoinStats. CoinStats offers the highest swap rate because it combines all its decentralized exchange aggregaters (1inch to 0x), etc.).
Let’s take a look at How to Swap Rocket Pool to ETH on CoinStats
Step 1: Connect your wallet
Search for RPL Price on coinstats.app. Scroll down to the “swap” features and connect the wallet in which you have the RPL token.
Once you click on the “Connect” button, you will be able to see various wallet choices offered by CoinStats. Find your wallet and then connect it.
It is possible to connect by scanning the QR code via WalletConnect, or manually entering the Blockchain/Crypto address and Wallet address into your mobile or web application.
Step 2: Choose a Token
After linking your wallet successfully, you can choose which token to exchange by entering data in USD/EUR or cryptocurrencies.
As an example, RPL is being swapped for ETH.
In the “From” field select the RPL token from your wallet, and in the “To” field, select “ETH”.
Step #3: Click to Swap
For slippage and gas setting adjustments, you can click Advanced Options. When you’re finished with customizing, scroll down to the bottom of your screen and click the “Submit Swap” button.
After you’ve submitted your swap request, you’ll be prompted to confirm it. To begin the swap, review the information appearing on your web or mobile app screen, and click the “Confirm” button.
The transaction has been processed. The gas parameters that you choose will affect the speed of your transaction. You can trace your transaction from the loader appearing at the bottom right corner or from the wallet’s home page.
NOTE:Network Transaction fees are also known as Gas Fees. It is the cost to conduct a Blockchain transaction. Gas fees can be described as being paid in the currency native to the network (i.e. Ethereum is the Ethereum network. CoinStats may also charge a swap fee, in addition to gas fees.
Closing Thoughts
This year, Ethereum is seeing a resurgence as institutions who have finished amassing Bitcoin are now turning their focus to the blockchain industry’s greatest smart contract ecosystem. Grayscale and others may purchase ETH wholesale for speculative reasons, but it is likely that some investors will decide to diversify their holdings through staking.
Staking pools remain the best option for people who don’t have any technical knowledge about blockchain and computers. Rocket Pool, a platform that allows you to deposit assets and give control to nodes operators to support Ethereum 2.0 makes it very easy. The best thing? You don’t even need 32 ETH to join a mini-pool, 16 ETH is more than enough!
Rocket Pool fills a crucial void in ETH2 stakers’ lives by providing both faster rewards and minimum requirements. Now you can begin to stake your token without needing infrastructure, incentives, or commissions.
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