in

Some basic Rocketpool questions

At the bottom line, I’m interested in staking ETH and getting a reward over time for it. I don’t have the funds or the knowhow to operate a node, so I’m just looking for something that will passively accrue and I’m fine with not touching the balance for an extended period of time. But I also very much value security and don’t want to trust my balance to an exchange platform.

From what I’ve gathered, Rocketpool (or more specifically, rETH) is the model for satisfying my beginner-friendly use case. If I understand correctly, it lets me simply stake my ETH in a pool and then trade rETH back at a later point for the value of my initial ETH investment, plus interest baked into the rETH value? Please correct me if I’m wrong. I’ve read through most of the explainer series on their website and most of it went over my head. If that alone is an indicator that I’m out of my wheelhouse, feel free to let me know or offer a better strategy.

If I go to the beta testnet here [https://beta.rocketpool.net/](https://beta.rocketpool.net/), it allows me to trade 1 ETH:0.8 rETH. From a simple investment standpoint, is this something I should do right now, as in the sooner I get in the better? Or should I wait until the mainnet release?

Will that exchange rate be something that changes over time, so that at some point in the future I could exchange my rETH back at 1:0.7 for example, and get more ETH?

Is there a way for me to store my rETH in a secure wallet with keys? Or if not, is this something that will be able to be done in the future?

Thanks

What do you think?

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

4 Comments

  1. Overall your impressions are correct. I do think that rETH is your best option.

    >If I understand correctly, it lets me simply stake my ETH in a pool and then trade rETH back at a later point for the value of my initial ETH investment, plus interest baked into the rETH value?

    Yes, this is correct, all you need to do is hold the rETH token that you bought and then trade it back for more ETH than you bought it for.

    >From a simple investment standpoint, is this something I should do right now, as in the sooner I get in the better? Or should I wait until the mainnet release?

    You should do it now, but not ‘from an investment standpoint’. This is just on testnet, so please do not try to put real ETH into this contract. You can get testnet ETH for free from various places including the ethstaker discord server. Give that a try and swap it for rETH just to get the feel for how it works.

    >Will that exchange rate be something that changes over time, so that at some point in the future I could exchange my rETH back at 1:0.7 for example, and get more ETH?

    Yes, exactly.

    >Is there a way for me to store my rETH in a secure wallet with keys?

    rETH is an ERC-20 token, so you can hold it in any wallet that you hold ETH in. For example, if you hold your ETH in a hardware wallet, just use that wallet to make the swap on the Rocketpool webpage for rETH (again the site is not ready for mainnet ETH yet). Then, your rETH will be in your hardware wallet and will be as secure as anything else that you would keep there.

    Now, you should note that the ETH that you deposited is ultimately what is valuable and the rETH that you are holding is essentially a claim on that ETH plus some staking rewards. If you trust the Rocketpool smart contracts (which I do) then rETH is as good as ETH. However, there is some risk of a smart contract bug, etc.

  2. If you don’t feel super comfortable yet which is understandable I recommend 2 things.

    1. get some testnet Eth and try the beta, see how simple it is.

    2. after launch just wait another month, let others test the water with the smart contracts (even though they are audited and verified in multiple betas).

    I will run a rocket pool validator right away

🏖️ ComfyRise 🌅 The chillest ride to the moon launches DxSale presale tomorrow! | Kick back and relax with the good vibes, buybacks, BNB rewards, and custom anti-whale mechanics! | Erase the stress and enjoy the vibes!

Introducing Staking: 50% of All Trading Profits on CryptoBridge Will go To BridgeCoin Stakers | by CryptoBridge