Atlas Update: A Game Changer for Ethereum Node Operators and the LST Community
Rocket Pool’s Atlas Update brings exciting changes and optimizations, making the protocol more efficient and accessible than ever before!
After the very successful Shapella Upgrade, the Ethereum Node operator community is about to witness another important milestone. Scheduled for the 18th of April at Midnight UTC, the Atlas update will bring immense value to the Ethereum LST community.
This significant upgrade makes the protocol compatible with Ethereum’s Shanghai upgrade, allowing validators to initiate withdrawals of their staked ETH on the Beacon Chain. It also introduces many new improvements, ranging from simple gas optimizations to major architectural changes aimed at scaling Rocket Pool like never before.
Before delving into the changes, let’s briefly discuss Ethereum’s Shanghai upgrade and how it will help Rocket Pool reach new heights.
Main Points of the Atlas Update
- Increased protocol capacity (~ +300%)
- Solo validator conversion (without need to exit!)
- Increased rewards for each minipool
- Lower barrier to entry to become a node operator
Introduction of 8 ETH Minipools
One of the most anticipated changes in Atlas is the introduction of the ability to create minipools with only 8 ETH instead of 16 ETH. Minipools with 8 ETH bonded by their owning node operator are matched with 24 ETH from the staking pool (provided by rETH holders) to make a validator. This change significantly reduces the capital requirement for running your own validator and results in greater returns for both the node operator and the rETH stakers! In fact, running two 8-ETH minipools instead of one 16-ETH minipool will provide over 18% more rewards — even if the 16-ETH minipool has a commission rate of 20%. Creating an 8 ETH minipool requires staking a minimum of 2.4 ETH worth of RPL and a maximum of 12 ETH worth of RPL.
Solo Validator Conversion
As part of the Shapella upgrade, solo validators can change their validators’ withdrawal credentials. With Atlas, there’s an exciting opportunity to create a special minipool that becomes the withdrawal address for an existing solo validator. In other words, this allows you to directly convert a solo validator into a Rocket Pool minipool without needing to exit it!
Other Optimizations
The Atlas update also brings other optimizations, including:
- Automatic Rewards Distributions
- Gas optimization for minipool creation
These enhancements make the staking experience smoother and more efficient for everyone involved.
In conclusion, the Atlas update is set to revolutionize the Ethereum LST community by increasing protocol capacity, lowering barriers to entry, and providing better rewards. Get ready for the 18th of April at Midnight UTC and join the future of Ethereum staking!
