Summary

This proposal seeks to add Rocket Pool ETH (rETH) to the Resolv ETH collateral basket, enhancing basket decentralization and security.

Abstract

Rocket Pool ETH (rETH) was the first Ethereum LST protocol to implement permissionless nodes and remains the most decentralized LST. From day one, its goal has been to be fully permissionless and trustless.

Problem

The current Resolv ETH collateral basket of ETH LSTs faces a centralization challenge in its implementation. wbETH, being an LST from centralized exchanges, relies on self-operated node operators. While wstETH use Distributed Validator Technology (DVT), they still have limited node operator numbers and diversity. For Ethereum, greater decentralization directly enhances network security—a core principle that LSTs should follow.

Rationale

rETH achieves 100% permissionless node implementation, featuring numerous solo validators, making it the most decentralized LST in the ecosystem.

Node Decentralization Comparison

rETH is steadily growing on ETH mainnet with increasing liquidity and depth. Currently, its largest liquidity pool is on Balancer with 26M, second only to wstETH.

Liquidity Comparison

Adding rETH to Resolve ETH collateral basket would enhance diversity and decentralization of the basket while further improving depth and use case (AAVE rETH).

Furthermore, the Rocket Pool GMC has approved the Star project, providing incentives to DAOs that mint and adopt rETH. The current incentive rate is 0.05% for the first 10,000 rETH, and 0.025% thereafter.