RPIP-57: Node Distributor User Fund Unbundling Source

Guarantee that anyone can distribute ETH in Node Distributors.
RPIP57
Authorknoshua
StatusFinal
TypeProtocol
CategoryCore
Created2024-05-20
DiscussionLink
Vote Link
Vote Date2024-08-22
Vote ResultPassed

Contents

RPIP-57: Node Distributor User Fund Unbundling Source

Guarantee that anyone can distribute ETH in Node Distributors.

Abstract

A proposal to guarantee that anyone can distribute ETH in Node Distributors (where execution layer rewards for people not in the smoothing pool go). If a withdrawal address is not able to accept the share belonging to the node operator, the value is stored in their balance and only the share belonging to rETH is sent. The node operator can then claim an outstanding balance at a later time.

Motivation

Currently, anyone can call distribution on a Node Distributor. It attempts to send the node operator’s share to their withdrawal address, and if that fails, the entire distribution, including the sending of rETH share, fails. For example, a node operator could set their withdrawal address to a smart contract that doesn’t accept ETH or only accepts it when they are personally initiating the distribution. A profit motive for node operators to do this exists when rETH is traded at a discount. Ensuring that everyone can distribute would help support the rETH peg through better arbitrage and better match expectation that anyone can distribute.

Specification

Distribute

  • If the withdrawal address cannot accept the node share, it MUST be added to their balance
  • The user share MUST be transferred to rETH regardless

Claiming Outstanding ETH

  • The node operator MUST be able to claim any outstanding balance

Backwards Compatibility

The Node Distributor Delegate can be upgraded, there are no backwards compatibility concerns with this proposal.

Security Considerations

The design attempts to keep changes minimal while achieving the stated goal. The same approach is already used with the Merkle Distributor.

Copyright and related rights waived via CC0.

Citation

knoshua, "RPIP-57: Node Distributor User Fund Unbundling," Rocket Pool Improvement Proposals, no. 57, May 2024. [Online serial]. Available: https://rpips.rocketpool.net/RPIPs/RPIP-57.