Coinbase Ventures, the investment arm of the prominent cryptocurrency exchange Coinbase, has made a strategic plan investment in Rocket Pool, a decentralized Ethereum staking pool. The announcement was made on August 10, 2023 through a series of tweets from Coinbase Ventures.
Investment data
Coinbase Ventures has acquired an unknown amount of RPL tokens from the Rocket Pool team. This investment marks Coinbase’s entry into the liquid staking sector, a move that aligns with their ongoing efforts to scale Ethereum’s infrastructure in a decentralized manner.
Despite the acquisition of RPL tokens, there was no noticeable increase in the value of the tokens after the announcement.
Coinbase’s involvement
Coinbase Ventures has expressed deep admiration for Rocket Pool’s dedication to building one of the largest decentralized staking networks over the past six years. They will actively participate in Rocket Pool’s Oracle DAO and use ETH from their company balance to serve hundreds of nodes on the Rocket Pool network.
This involvement not only improves network decentralization, but also contributes to the overall stability and security of the Rocket Pool protocol. The protocol’s open-source code is regularly reviewed to ensure network decentralization and security.
About Rocket Pool
Rocket Pool is a leading liquid staking network on Ethereum, allowing users to stake ETH while holding liquidity. It offers up to 4.33% APR for ETH2 staking, with additional RPL rewards for those who have their own nodes, amounting to a maximum of 6.36% APR.
The network emphasizes decentralization, consisting of more than 3,100 node operators with more than 780,000 ETH staked. Rocket Pool’s open-source and audited smart contracts guarantee completely non-custodial staking and a maximum degree of decentralization.
Coinbase’s strategic investment in Rocket Pool marks an important step in its expansion into the decentralized finance sector. It reflects a shared belief between the two entities in scaling Ethereum’s infrastructure in a secure, decentralized manner, with the goal of bringing the next billion users onchain. The partnership between Coinbase and Rocket Pool is expected to support Rocket Pool’s long-term growth and contribute to the Rocket Pool community in the years to come.
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