#The Saturn 1 Upgrade

Welcome! This page serves as an introduction to key features included in the latest Rocket Pool Upgrade. Saturn 1 represents the most significant protocol upgrade in Rocket Pool's history, fundamentally transforming the protocol's capacity, economics, and competitive positioning in the liquid staking ecosystem.

1. Scaling: Removes capacity constraints, enabling node operators to run more validators and the protocol to meet greater rETH demand,
2. Flexibility & Competitiveness: Adjustable commission structures allow optimization of node operator earnings as market conditions evolve,
3. Sustainability: Enhanced RPL tokenomics create stronger alignment between protocol success and node operator rewards

#Saturn 0

The Saturn 0 upgrade was the precursor to Saturn 1. It was deployed on 28 October 2024, marking the first leap towards the overall Saturn development goals. This upgrade enabled ETH only minipools by adjusting protocol parameters via Rocket Pool's on-chain DAO. Additionally, all staked RPL became eligible for RPL rewards as the 10% collateral requirement was removed.

The rest of this page will go over the features included in Saturn 1.

#Saturn 1: Introducing Megapools

Megapools are featured in the Saturn 1 upgrade. If you're a veteran Rocket Pool Node Operator, you'll know that each minipool validator is managed by an individual minipool smart contract. A megapool is a single smart contract per node operator that serves as an Ethereum withdrawal address for multiple validators.

The ongoing and upfront gas cost of managing multiple validators and distributing rewards is significantly lower when using a single megapool contract in comparison to using multiple minipool contracts. Legacy minipool deposits are disabled and node operators can migrate their minipool validators to a megapool. Overall, megapools should improve the node operator experience and long term sustainability of Rocket Pool.

The delegate contract serves as an Ethereum withdrawal address and manages validator activities. Node operators can currently choose to either upgrade or stay on the same minipool delegates, making it challenging to design future upgrades. The Saturn 1 Upgrade introduces Forced Delegate Upgrades, allowing the protocol to iterate more efficiently. Forced delegate upgrades on megapool contracts means the Rocket Pool Protocol won't be hindered by backwards compatibility when designing future upgrades, and gives the pDAO more flexibility to improve Rocket Pool over time.

If you're a new or returning node operator and want to look into creating a megapool, feel free to take a look at the Creating a Megapool Validator guide.

#Lower Bond Requirements

Megapools reduce operational cost, allowing Rocket Pool to lower the bond requirement per validator from 8 ETH to 4 ETH. Lower ETH bonds allow for the same amount of bonded ETH to support a larger volume of rETH and improves the capital efficiency of Rocket Pool. In other words, lower bonds allow more commission per ETH bonded.

The bond requirement is a pDAO adjustable parameter in Saturn 1. This sets the stage for Rocket Pool's future upgrade Saturn 2, which plans for 4 ETH bonds on the first two validators then 1.5 ETH bonds on each subsequent validator. Check out RPIP-42: Bond curves to dive into the details.

#RPL Revenue Share

In Saturn 1, RPL becomes an ETH-accrual revenue share token. Node operators with RPL staked on their megapool earn an ETH share (9% of protocol revenue) proportional to their staked RPL. The next section explains how this revenue distribution works.

#Universal Adjustable Revenue Split (UARS)

Saturn 1 introduces Universal Adjustable Revenue Split (UARS), a new and adjustable system for distributing protocol ETH revenue from node operator commissions. This adaptability allows Rocket Pool to be competitive as market conditions shift.

UARS splits ETH revenue among four groups. Each share is adjustable via pDAO governance:

• base commission share to node operators (5%)
• voter share rewards for RPL stakers (9%)
• pDAO share to the protocol treasury (0%, can be adjusted via governance)
• rETH holders receive the remainder

The voter share (9% of protocol revenue) is distributed proportionally among all node operators based on their share of total megapool RPL staked. In Saturn 1, RPL inflation rewards continue alongside this new voter share mechanism, providing additional incentives for node operators who stake RPL.

You here learn more about RPL Revenue Share and UARS.

#Reworked Deposit Mechanics

The Saturn 1 Upgrade includes a few notable changes to how the deposit queue for validator creation is handled. In the event of a long deposit queue, node operators who wish to dequeue their deposit may so do in exchange for rETH.

The improved deposit queue features two types of queues - standard and express queue. The express queue processes deposits at a quicker rate, but requires an express queue ticket for each validator deposit. This structure rewards existing node operators and assists in the migration from minipools to megapools.

Existing node operators receive express queue tickets based on their bonded ETH in legacy minipools: one ticket for every 4 ETH bonded. For example, a node operator with an 8 ETH legacy minipool gets 2 express queue tickets. This is enough tickets to fully migrate to two 4 ETH megapool validators using the express queue. RPIP-59: Deposit Mechanics goes into the nitty gritty of how deposits are handled.

#oDAO and pDAO Guardrail Parameters

In addition to revenue sharing parameters, a few guardrail parameters (controllable by pDAO) are being included in Saturn 1 to reduce the oracle DAO and protocol DAO trust assumptions. These guardrails serve to improve safety without interfering with legitimate use.

• RPIP-58: MEV Penalty Guardrail: places a limit on the number of MEV penalties that the oDAO can apply to minipools per week.
• RPIP-61: Balance Submission Guardrail: during normal operation, the rETH exchange rate doesn't need to change frequently. RPIP-61 places a limit on how often the oDAO can change the rETH exchange rate.
• RPIP-60: Protocol Upgrade Guardrails: introduces a delay between when a protocol upgrade is passed and when the upgrade is executed. RPIP-60 allows users ample time to exit the protocol if it changes in a way they do not agree. It also gives the security council power to veto a protocol upgrade.

#rETH Liquidity

Currently, the ETH from rETH mints flow into the deposit pool to be available for node operating matching. In Saturn 1, a proportion of ETH from new rETH mints will flow into the rETH contract rather than the deposit pool. Excess ETH above a buffer threshold of 1% of rETH TVL will flow into the deposit pool. This change serves to prioritize rETH withdrawal liquidity by minimizing the creation of additional supply and allowing rETH burns to better reflect demand. A closer look into rationale and how the buffer size is determined can be found here: RPIP-65: Prioritize rETH Withdrawal Buffer

#Audits

Rocket Pool is committed to ensuring the security of the protocol. Saturn 1 has undergone multiple rounds of comprehensive audits with leading teams in the Ethereum ecosystem. The final audit reports for Saturn 1 can be found below:

• Cantina
• Bailsec
• Sigma Prime

For a full history of audits, visit the Protocol Security page. Rocket Pool also maintains an active Immunefi bug bounty program with rewards up to $150,000 for critical vulnerabilities.

#Node Operator Guide

If you're interested in running a Rocket Pool node to create your own Ethereum validators, take a look at our Node Operator's guide. This is a very comprehensive guide that goes over all of the considerations involved in node operation, including:

• Deciding to run a node locally at home, or remotely on the cloud
• Selecting the hardware for a local machine, or selecting a remote hosting provider
• Preparing and securing the operating system of your node
• Selecting your Execution and Consensus clients
• Installing Rocket Pool's Smartnode stack
• Creating a new Beacon Chain validator using the Rocket Pool network
• Maintaining and updating your node
• Participating in on-chain governance

Both guides will show you how to practice for free on the Rocket Pool testnet so you can get a feel for everything without risking any of your real-life ETH, and how to stake your real ETH on the Ethereum mainnet once you're comfortable with the process.

When you're ready, select a guide from the options above based on your interests. You are also free to explore the various pages using the sidebar to the left.