Rocket Pool’s Saturn One Upgrade

Ethereum staking is one of the largest sources of sustainable onchain “real” yield, with tens of millions of ETH securing the network and liquid staking tokens (LSTs) forming the backbone of DeFi collateral. But as staking has scaled, a structural tension from the blockchain trilemma has resurfaced: decentralisation is increasingly being sacrificed in the pursuit of efficiency.

Rocket Pool was built to challenge that trade-off. Since launching in 2021, Rocket Pool has established itself as the only fully permissionless staking protocol on Ethereum, allowing anyone to stake ETH or run validators in a non-custodial, decentralised way. And with the launch of the Saturn One upgrade, the protocol is undergoing its biggest shift ever:

• Liquid stakers holding rETH benefit from increased token stability and a protocol designed to handle much higher demand.
• Node operators enjoy boosted capital efficiency and a more streamlined protocol design, resulting in higher yield.
• And the RPL token’s fee switch is activated, transitioning it from inflationary rewards to an ETH-accrual token.

This article explains how Rocket Pool works, why it matters, and how Saturn One reshapes its future.

What is Rocket Pool and why does it matter?

Rocket Pool is Ethereum’s most decentralised staking protocol. It connects two types of participants:

• Liquid stakers, who deposit ETH and receive rETH, a tokenised representation of staked ETH plus accrued rewards. rETH can also be bought and sold on decentralised exchanges.
• Node operators, who run Ethereum validators with reduced capital requirements, earning staking rewards plus a higher yield from protocol commissions.

Instead of requiring 32 ETH to run a validator, Rocket Pool pairs liquid staking deposits with node operator ETH, supporting validators across more than one thousand independent operators. This reduces centralisation risk while lowering barriers to entry. And unlike more centralised staking services, Rocket Pool is fully non-custodial and governed by token holders, aligning with Ethereum’s decentralisation ethos and minimising trust assumptions.

Why Rocket Pool is considered the most decentralised staking protocol

Rocket Pool is the only staking protocol that has been built in alignment with Ethereum’s core values since day one, helping to ensure credible neutrality and freedom from censorship.

• Permissionless node operation: With Rocket Pool, anyone can be a node operator and run validators with reduced capital requirements and helpful open-source software.
• Distributed validator set: Over one thousand independent node operators worldwide with diverse hardware setups distribute Ethereum validator control and reduce slashing risks.
• Resilient DAO governance: Rocket Pool’s parameters and development are governed by token holders via the protocol’s DAO.
• Smart contracts: Core staking logic is transparent, open-source, and reviewed multiple times each year by the industry’s best auditors.

This architecture contrasts sharply with custodial staking providers and other staking protocols that rely on a small number of centralised node operators. It also ensures that Rocket Pool’s governance is especially resilient against capture. Onchain voting is controlled by proprietary smart contracts, reducing external dependencies. And the RPL token only gains voting power when staked in a node, ensuring governance participants are aligned with the protocol’s success.

Saturn One: A structural upgrade to staking economics

Saturn One is Rocket Pool’s biggest upgrade since launch. It is part of a multi-phase roadmap (Saturn Zero → Saturn One → Saturn Two) that modernises capital efficiency, tokenomics, and protocol governance. Key Saturn One innovations include:

1. MEGAPOOL validators and 4 ETH bondsNode operators now contribute just 4 ETH per validator, with the remaining 28 ETH sourced from liquid stakers. This halves capital requirements versus the previous design and dramatically increases protocol capacity.
2. Capital efficiency and scaling Lower bonds allow more operators to participate, increasing rETH minting capacity and enabling Rocket Pool to scale with market demand.
3. Withdrawal buffer A protocol-level withdrawal buffer improves rETH liquidity and price stability, enabling more instant exits, plus an arbitrage-based depeg mitigation during times of volatility.
4. Universal Adjustable Revenue Split (UARS) Saturn One introduces a protocol-level revenue split between rETH holders, node operators, and RPL stakers, which is governable and adjustable by the DAO.

Together, these changes represent the latest in liquid staking protocol design. The result is a staking protocol that can grow to meet demand without compromising decentralisation. Read more about the Saturn One upgrade here: [https://medium.com/rocket-pool/all-about-saturn-one-42ca035a746d]. Or check out this community-built explainer website: [https://saturn.rocketpool.net/].

Why liquid stakers should choose Rocket Pool

For liquid stakers, Rocket Pool offers a distinct risk-return profile:

• Non-custodial staking: rETH is backed by decentralised validators and onchain contracts.
• Overcollateralisation: Node operators post collateral as a safety backstop.
• Composable DeFi collateral: rETH integrates across a range of major lending, liquidity, and derivatives protocols.

Liquid staking with rETH is easy, just head over to the Rock Pool website [https://stake.rocketpool.net/] to stake with as little as $20 worth of ETH, or buy rETH on your favourite decentralised exchange. rETH is also available on a range of popular L2s such as Arbitrum, Optimism, and Base. For liquid stakers interested in doing more with their rETH, RockSolid is a Rocket Pool vault partner currently offering yields exceeding base rETH staking returns, just one example of the extensive DeFi stack built on Rocket Pool’s LST infrastructure. Learn more about RockSolid here: [https://rocketpool.net/#rocksolid]

Node operator yield boost with Saturn One

Saturn One materially increases node operator returns compared to previous protocol design:

• 2x validator capacity per ETH bonded: With 4 ETH bonds, operators can now run twice as many validators for the same capital.
• Commission on protocol ETH: Operators earn a base 5% commission on rewards generated from the 28 ETH contributed by liquid stakers.
• Gas efficiency: MEGAPOOLs reduce deployment and operational costs.

Taken together, MEGAPOOL validators can now earn ~2.3× more commission per bonded ETH. The best way to get started as a node operator is to check out the extensive /Rocket Pool documentation [https://docs.rocketpool.net/]. If you have questions, the Rocket Pool community is highly active on Discord and provides 24/7 support: [https://discord.com/invite/rocketpool]

The RPL fee switch: From inflation to ETH revenue share

Historically, RPL paid inflationary rewards to eligible node operators. Saturn One introduces a structural shift:

• RPL stakers now earn a share of protocol liquid staking commission, paid in ETH.
• RPL inflation rewards will phase out later in the year, reducing token supply growth.

This transforms RPL into an ETH-accrual asset tied directly to protocol usage rather than token emissions. The more RPL staked in the protocol, the more ETH it captures. And RPL retains its governance power, with staked RPL giving node operators a say in protocol decisions. Potential yields depend on protocol TVL, commission parameters, and RPL staking ratios. This calculator is a community initiative to estimate potential ETH returns from staked RPL: [https://rpl-fee-switch.streamlit.app/]

Board the rocket

Saturn One strengthens Rocket Pool’s founding thesis: decentralisation can scale safely without sacrificing competitiveness. With improved capital efficiency for node operators, greater stability for rETH holders, and a redesigned RPL model that captures protocol revenue in ETH, Rocket Pool is upgrading to a next-level staking platform that retains decentralisation at its core.