Coinbase Ventures joins liquid staking protocol Rocket Pool and its Oracle DAO

Updated: 04 April 2023

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Coinbase Ventures recently decided to increase its involvement with a liquid staking protocol known as Rocket Pool. It also joined Rocket Pool’s Oracle DAO (oDAO), which is a group of special node operators in the protocol’s ecosystem who are in charge of performing certain extra duties for the project.

NEW: Coinbase Ventures Joins Rocket Pool’s Oracle DAO $RPL

— Altcoin Daily (@AltcoinDailyio) April 4, 2023

Coinbase Ventures itself is the investment branch of Coinbase — the largest centralized cryptocurrency exchange by trading volume in the United States. Its decision to join Rocket Pool and its Oracle DAO will allow it to receive a share of the 15% of total RPL inflation produced during each reward period.

.@cbventures is one vote away from being added as a @Rocket_Pool oracle DAO node. I'm very excited to have Coinbase Ventures as an industry participant on the oDAO and I look forward to working with them as fellow oDAO representatives. Welcome frens!

— superphiz.eth 🦇🔊🛡️ (@superphiz) March 29, 2023

The rewards are dedicated to the Oracle DAO, and they come in RPL, which is Rocket Pool’s native cryptocurrency. The project’s ecosystem offers direct incentives, as well as insurance and governance for the protocol. However, the token’s performance in April has been fairly flat so far, ranging between $43 and $44, with rather minor fluctuations.

Meanwhile, Rocket Pool’s staking derivative, rETH, has a premium against Ether itself. On Uniswap, the largest decentralized exchange on Ethereum, 1 rETH can be exchanged for 1.07295 at the time of writing.

Coinbase Ventures has previously invested in Rocket Pool

It is worth noting that this is not the first time that Coinbase Ventures has shown interest in Rocket Pool. According to the project’s founder, David Rugendyke, Coinbase Ventures actually made an investment into Rocket Pool earlier in 2023.

He released an announcement about Coinbase Ventures joining the oDAO stating that “We’re excited to announce that Coinbase Ventures is deepening its partnership with Rocket Pool via a direct investment into RPL in addition to its proposed entry into the oDAO. Coinbase Ventures also plans to use their RPL and ETH to spin up their own Rocket Pool minipools.”

However, its increased involvement with the Oracle DAO is supposedly coming as preparation for Ethereum’s Shanghai hard fork, which is now only about a week away, expected to take place on April 12th. Once the fork arrives, it will enable Ether withdrawals for the first time.

One of the Rocket Pool node operators, known as [object Object] has stated on the project’s Discord server that the project is happy to welcome Coinbase Ventures as a member of the dAO. Furthermore, they added that they would like to see more entities join, especially when it comes to non-US-based companies, groups, and like.

At this moment, 8 out of 18 oDAO members are US-based, so having more non-US entities would help with decentralization and diversity among the participants.

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