xrETH

xrETH is a liquid Ether staking token which receives the same rewards as solo staking

xrETH is Constellation's liquid staking token, offering several unique properties compared to other LST designs.

Full ETH Staking Rewards

Functionally, xrETH is very similar to rETH, but it offers the additional advantage of returning the full ETH staking APR. This gives xrETH a similar yield profile to solo staking while remaining liquid.

Value Accrual Design (not rebasing)

Also like rETH, xrETH uses the cToken model made famous by Compound, where the protocol's exchange rate for xrETH adjusts over time with the value of earned rewards. This model is more gas efficient than a rebasing token, and it also may offer tax advantages to users in certain jurisdictions.

No Staking Fees

See the Node Operator documentation for information about rewards for operators.

xrETH is designed to receive the same yield as standard Ethereum staking (including MEV). To achieve this, the ETH exchanged for xrETH is used inside Rocket Pool to create new minipools alongside rETH, and the rETH commission is used to incentivize other protocol participants. Although xrETH minters may consider it to be "feeless", there is technically a fee charged by the protocol which is equal to the extra rewards generated by the Rocket Pool validator rETH commission.

Each ETH bonded on a Rocket Pool node receives the following rewards on an LEB8 minipool:

(rETH commission * ETH staking yield * 3) + ETH staking yield

Constellation reserves an operational fee equal to:

rETH commission * ETH staking yield * 3

Therefore, xrETH rewards are equal to the typical ETH staking yield.

For example, if the rETH commission is 14% and the ETH staking yield is 4%, typical RP operators would receive 0.0568 ETH per year per ETH bonded (with an LEB8), and xrETH holders would receive 0.04 ETH per year per ETH deposited, but with no RPL exposure necessary. The difference is taken to pay for Constellation protocol operations and is split between the Administrator and Node Operators.

Note that it is always more profitable to run a Rocket Pool node with your assets instead of minting xrETH or xRPL. If you are technically capable and own more than 8 ETH and enough RPL to match it, please support the network and community by running a Rocket Pool node (and join NodeSet to earn even more)!