MakerDAO announced on Twitter that it has added support for Rocket Pool’s ETH liquid collateral derivative rETH as collateral.
In the recent announcement, MakerDAO, the #1 DeFi protocol, has accepted Rocket Pool’s Liquid Staking Derivatives (LSD) token.
Users can now use that token, rETH, as collateral to mint Maker’s DAI stablecoin. Oasis.app, a popular portal for MakerDAO, has also launched support for rETH. Users can access exposure leverage for rETH using Oasis’s “Multiply” feature.
In this deal, it may be a strategy of MakerDao to capture Lido’s huge market share.
By supporting rETH, Maker, which has $6.5 billion in TVL, gives DeFi users the option of using a liquid staking derivative to promote decentralization. MakerDAO users minting DAI in rETH will be liquidated if their collateral is worth less than 170% of their outstanding DAI.
“It’s great to be supporting another liquid staking derivative, this time in the form of rETH – especially with the recent concerns around dominance of other derivatives in the sector,”Chris Bradbury, the CEO of Oasis.app said
In contrast to other staking protocols, Rocket Pool provides an infrastructure that allows users to operate independent Ethereum nodes, attracting support from decentralized enthusiasts.
Rocket Pool is also hoping the MakerDAO integration will be the first of many premium DeFi integrations for its rETH token. The protocol has been waiting for Chainlink to launch an oracle that provides rETH data, making it easy for developers to track the price of the token.
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