Rocket Pool is governed by two decentralized autonomous organizations, oDAO (Oracle decentralized autonomous organization) is tasked with the responsibility of running Rocket Pool’s ETH staking nodes and having voting rights on contract upgrades to Rocket Pool’s smart contracts. Coinbase Ventures, U.S.’s largest centralized crypto exchange, said it planned to team up with Rocket Pool’s powerful Oracle DAO. This may help RocketPool gain ground on its rival Lido.
Members of the oDAO work on the Rocket Pool’s governance and utility of token RPL; also these members are rewarded in the native RPL token. Darren Langley, General Manager at Rocket Pool, confirmed the announcement of the partnership with Coinbase Ventures, saying that the company (Coinbase) was eager to support the level of decentralization supported by Ethereum staking.
Ethereum (consensus layer) has a total liquid staking account of 42.54%.
Lido not only has the top ETH liquid staking market share of 65.8% but also has the top overall Ethereum staking share of 28.9%. Many analysts, including Ethereum developers, have warned about the trust of the staking ecosystem.
If a particular protocol were to stake a huge part of the ETH in circulation, it would encourage a consortium of validators and ultimately pose a threat to the Ethereum protocol.
What can we expect ?
This partnership could help Rocket Pool overcome Lido as the top ETH liquid staking service. As stated by Jasper (pseudonymous Rocket Pool community advocate): “Coinbase is a household name and having their engineers securing data gives the protocol legitimacy to some institutions. Further he added that “the whole ecosystem is getting a boost”.
Lido currently has almost $7.43 billion ETH tokens staked via its platform whereas Rocket Pool has just under $555.81 million staked via its platform.
Talking about Coinbase, the second largest liquid staking market with 14.8% and Rocket Pool is the third largest service provider in the market at 3.0%. Coinbase participation in the oracleDAO looks like some sort of collaboration between the second and third largest liquid staking markets and is expected to ease the gap with Lido.
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