{"id":"reth","title":"rETH ","content":"**Rocket Pool ETH (rETH)** is [Rocket Pool](https://iq.wiki/wiki/rocket-pool) protocol's liquid staking token. The rETH token represents an amount of ETH that is being staked and earning rewards within [Ethereum](https://iq.wiki/wiki/ethereum) [Proof-of-Stake](https://iq.wiki/wiki/proof-of-stake). [\\[1\\]](#cite-id-sxand67qxgg)[\\[4\\]](#cite-id-8uag965wibf)\n\nAs Rocket Pool node operators stake [Ethereum](https://iq.wiki/wiki/ethereum) on [Proof-of-Stake](https://iq.wiki/wiki/proof-of-stake) the resulting rewards increase the value of rETH relative to [ETH](https://iq.wiki/wiki/ether-eth). Rocket Pool's [liquid staking](https://iq.wiki/wiki/liquid-staking) token allows holders to benefit from the returns of the [Ethereum](https://iq.wiki/wiki/ethereum) [Proof-of-Stake](https://iq.wiki/wiki/proof-of-stake). [\\[2\\]](#cite-id-sl72llmkic)[\\[3\\]](#cite-id-nsp41zi2y0r)\n\n$$widget0 [YOUTUBE@VID](https://youtube.com/watch?v=doXK3iDoQgI)$$\n\n## Overview\n\nA Rocket Pool staker's role is to deposit [ETH](https://iq.wiki/wiki/ether-eth) into the deposit pool which enables a [node](https://iq.wiki/wiki/node) operator to create a Beacon Chain [validator](https://iq.wiki/wiki/validator). As a result, the staker is given rETH which represents how much ETH is deposited and when it was deposited. The ratio includes rewards that Rocket Pool node operators earn from:\n\n* The Beacon Chain\n* Priority fees from block proposals\n* MEV rewards from block proposals\n\nThe value of rETH is determined by the following ratio:rETH:ETH ratio = (total rETH supply) / (total ETH staked + total rETH contract balance + total rETH share of priority fees + total rETH share of MEV rewards). [\\[5\\]](#cite-id-22sn48no92d)\n\nThe value of rETH consistently rises compared to [ETH](https://iq.wiki/wiki/ether-eth) due to the continuous accumulation of Beacon Chain rewards, priority fees, and MEV rewards. The rETH/ETH exchange rate is regularly updated, around every 24 hours, based on the Beacon Chain rewards earned by Rocket Pool node operators. [\\[5\\]](#cite-id-22sn48no92d)\n\n![image](https://ipfs.everipedia.org/ipfs/QmUthdgZuR8qkaMaeH4Ei5tio81bDuVYVW1yK1ohYYZ7qt)\n\n## Utility\n\nAs an alternative to holding onto and eventually returning rETH to the [Rocket Pool](https://iq.wiki/wiki/rocket-pool), users can also use it in [DeFi](https://iq.wiki/wiki/defi) applications. rETH can be traded, used for lending, and collateral as rETH is a standard [ERC20](https://iq.wiki/wiki/erc-20) token. [\\[5\\]](#cite-id-22sn48no92d)\n\n## DEX Staking\n\n### Staking via Layer 1\n\nrETH can be acquired through [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange) on [Ethereum's](https://iq.wiki/wiki/ethereum) main network [(Layer 1)](https://iq.wiki/wiki/layer-1), such as [Balancer](https://iq.wiki/wiki/balancer) and [Uniswap](https://iq.wiki/wiki/uniswap), without using Rocket Pool’s official staking interface. Simply holding rETH provides exposure to Rocket Pool’s staking rewards, regardless of how it is obtained.\n\nBalancer’s metastable pool is specifically designed for assets like rETH, aligning closely with the protocol’s oracle-reported exchange rate. This structure reduces slippage and trading fees compared to conventional pools, offering more favorable rates. Other [Layer 1](https://iq.wiki/wiki/layer-1) exchanges may not reflect the oracle rate as accurately, potentially resulting in less optimal pricing.\n\nThough [Layer 1](https://iq.wiki/wiki/layer-1) [gas fees](https://iq.wiki/wiki/gas) are generally higher than those on [Layer 2](https://iq.wiki/wiki/layer-2), [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange) can still offer lower transaction costs compared to direct [staking](https://iq.wiki/wiki/staking) through Rocket Pool. Users should compare exchange rates and fees across platforms before initiating a swap.  [\\[6\\]](#cite-id-J7I0HRixmX)\n\n### Staking via Layer 2\n\nRocket Pool users can oalso btain rETH through [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange) on [Layer 2](https://iq.wiki/wiki/layer-2) networks, such as [Optimism](https://iq.wiki/wiki/optimism) and [Arbitrum](https://iq.wiki/wiki/arbitrum), without interacting directly with Rocket Pool's [staking](https://iq.wiki/wiki/staking) interface. Holding rETH entitles users to the benefits of decentralized staking, regardless of how it is acquired.\n\n[Layer 2](https://iq.wiki/wiki/layer-2) networks utilize rollup technology to aggregate multiple transactions off-chain before posting them to [Ethereum](https://iq.wiki/wiki/ethereum), reducing execution and storage costs. This results in significantly lower gas fees, particularly beneficial for users staking smaller amounts of ETH.\n\n[Uniswap](https://iq.wiki/wiki/uniswap), a [decentralized exchange](https://iq.wiki/wiki/decentralized-exchange) protocol, is available on both [Optimism](https://iq.wiki/wiki/optimism) and [Arbitrum](https://iq.wiki/wiki/arbitrum) and facilitates ETH-to-rETH swaps. While this method offers cost efficiency, users may experience reduced liquidity and potential price impact on larger trades. It is advisable to compare rates and liquidity across platforms before proceeding with a [Layer 2](https://iq.wiki/wiki/layer-2) swap.  [\\[7\\]](#cite-id-nOPjC2NKba)","summary":"rETH is Rocket Pool's liquid staking token representing staked Ethereum (ETH) and rewards earned through Ethereum Proof-of-Stake in the Rocket Pool protocol.","images":[{"id":"QmQxcQynkUEWpaxEBfiLnMYshMJbABtqZd5wfQKhMh1RUt","type":"image/jpeg, image/png"}],"categories":[{"id":"cryptocurrencies","title":"Cryptocurrencies"}],"tags":[],"media":[{"id":"QmUthdgZuR8qkaMaeH4Ei5tio81bDuVYVW1yK1ohYYZ7qt","size":"0.05","name":"image","type":"GALLERY","source":"IPFS_IMG"},{"id":"QmP5drHzmeHmpiVZajLoueFFg7ZUFRRuzNfcG3hw48VExx","size":"0.01","name":"image","type":"ICON","source":"IPFS_IMG"},{"id":"https://www.youtube.com/watch?v=doXK3iDoQgI","name":"doXK3iDoQgI","caption":"","thumbnail":"https://www.youtube.com/watch?v=doXK3iDoQgI","source":"YOUTUBE"}],"metadata":[{"id":"references","value":"[{\"id\":\"sxand67qxgg\",\"url\":\"https://twitter.com/Rocket_Pool\",\"description\":\"twitter profile\",\"timestamp\":1684747036499},{\"id\":\"sl72llmkic\",\"url\":\"https://www.coingecko.com/en/coins/rocket-pool-eth\",\"description\":\"coingecko\",\"timestamp\":1684747156650},{\"id\":\"nsp41zi2y0r\",\"url\":\"https://coinmarketcap.com/currencies/rocket-pool-eth/\",\"description\":\"cmc\",\"timestamp\":1684747164727},{\"id\":\"8uag965wibf\",\"url\":\"https://rocketpool.net/#stake-run-node\",\"description\":\"website\",\"timestamp\":1684747172430},{\"id\":\"22sn48no92d\",\"url\":\"https://docs.rocketpool.net/guides/staking/overview.html#the-reth-token\",\"description\":\"rEth token \",\"timestamp\":1684748786299},{\"id\":\"J7I0HRixmX\",\"description\":\"Rocket Pool Docs: Staking via a Decentralized Exchange on the Ethereum Network (Layer 1)\",\"timestamp\":1749523251750,\"url\":\"https://docs.rocketpool.net/guides/staking/via-l1\"},{\"id\":\"nOPjC2NKba\",\"description\":\"Rocket Pool Docs: Staking via a Decentralized Exchange on Layer 2\",\"timestamp\":1749523378636,\"url\":\"https://docs.rocketpool.net/guides/staking/via-l2\"}]"},{"id":"website","value":"https://rocketpool.net/#stake-run-node"},{"id":"twitter_profile","value":"https://twitter.com/Rocket_Pool"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/rocket-pool-eth/"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/rocket-pool-eth"},{"id":"polygonscan","value":"https://polygonscan.com/token/0x0266f4f08d82372cf0fcbccc0ff74309089c74d1"},{"id":"arbiscan","value":"https://arbiscan.io/token/0xec70dcb4a1efa46b8f2d97c310c9c4790ba5ffa8?__cf_chl_tk=Q6nR8E1siWqCUIXj3itL2Au2R6lr7fSDD4y5BdAQWfQ-1749523420-1.0.1.1-KKdYMj4IyTCK83_RZBNU.qtbfVPXszuXey0ONchiWok"},{"id":"etherscan","value":"https://etherscan.io/token/0xae78736cd615f374d3085123a210448e74fc6393"},{"id":"discord_profile","value":"https://discord.com/invite/rocketpool"},{"id":"reddit_profile","value":"https://www.reddit.com/r/rocketpool/"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmX76mfZTVGHVitKMUnax1ZYTnCCFQP5891XrYBqYRXHY9\""},{"id":"commit-message","value":"\"Add rETH launch (May 2020) event details to the article's events section.\""},{"id":"previous_cid","value":"QmX76mfZTVGHVitKMUnax1ZYTnCCFQP5891XrYBqYRXHY9"}],"events":[{"id":"58b046f3-5447-4320-b5ef-fd09b119e54c","date":"2020-05","title":"rETH Launch","type":"CREATED","description":"rETH became a tokenized staking deposit in Rocket Pool in May 2020","link":"","multiDateStart":null,"multiDateEnd":null}],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x212Cb3F4aE6611054637f9f78F18fB628AD258bb"},"language":"en","version":1,"linkedWikis":{"blockchains":["ethereum"],"founders":["david-rugendyke"],"speakers":[]}}