# RP Layer 2 Written by Xer0 ###### tags: `NOA` Tldr: centralized SaaS provider build on Rocket Pool The goal for this idea is to help define a higher APR for ETH while still utilizing the Rocket Pool network. I’ve compared a few APRs below Solo-staking = 5% Lido-liquid staking = 4.6% (10% commission) Rocket Pool rETH = 4.3% Rocket Pool Node operator = 5.5% Idea While there are a few partnerships with SaaS providers there are currently no SaaS providers that are actively building and utilizing many of the benefits that Rocket Pool provides for node operators. I’ve come up with a solution where a centralized SaaS provider will be able to provide at a minimum of 25% more yield on ETH while keeping the risk down for all ETH holders. Simple Overview I’ll be calling this new project “Rocket Staker” and the project token will be labeled as RSR. From the outside you’ll be able to deposit ETH and/or RPL (two different kinds of deposits) and you’ll then receive a token rsETH for ETH and rsRPL for RPL. This project will use both tokens to then create minipools on the Rocket Pool network. Tokenomics RSR is the native protocol token that will accrue 15% of the rewards from the network and will be available for claim once every 28 days. There will be a supply of 100,000,000 Tokens with an inflation rate of 3% a year. There will be a burning of tokens as 5% of the staking revenue will be used to buy back and burn RSR. Leading to a higher reward per RSR token. rsETH is an interest bearing token similar to rETH, 75% of the rewards will be used to boost the ETH APR. 0 liquidity until withdrawals are enabled. 5% of the rewards will be used for building a treasury. rsRPL is a token that is minted 1:1 with RPL. by staking this token you will have a claim to RPL rewards every 28 days. The initial deposit will be locked until withdraws are enabled. RPL deposits will be incentivized with RSR tokens. How big is the APR for all assets? rsETH will have a variable interest rate that can be as low as a solo-staking validator(5%) with no real cap on the maximum (can be as high as 15%). Current Example with a single minipool. (assumptions: 10% commission rate, 100% collateralized in RPL, 12% RPL APR) If solo staking gives an APR of 5% on ETH. Then we can assume that a Rocket Pool validator will be making about 5.5% with a commission rate of 10%. This will lead to 0.66 ETH generated in a year, or 0.050769 ETH every 28 days With the current RPL/ETH price of 0.0107711 This will mean 1,485 RPL will be staked per minipool. RPL APR will lead to 10.275 RPL in rewards (worth 0.11067ETH). 40% to be distributed to rsRPL stakers, 60% to be sold to ETH to boost the rsETH APR rsETH APR: 6.27% rsRPL APR: 3.6% + RSR inflation RSR fees generated over 28 days: 0.01692 ETH + 3 RPL (per minipool)