MakerDAO (MKR) has announced that Spark Protocol will onboard Rocket Pool’s staked Ethereum (rETH) as a new collateral type, increasing opportunities for users to leverage digital assets in the DeFi ecosystem.
Expansion of the lending ecosystem
Founded in 2015, MakerDAO is best known for issuing the decentralized stablecoin DAI. The latest development in our partnership with Spark Protocol allows users to use their rETH holdings as collateral to borrow her DAI at competitive rates while earning staking yields. can.
Rocket Pool (RPL) is a decentralized Ethereum staking pool that provides users with rETH, the staked, tokenized version of Ethereum. With over 740,000 ETH currently staked in the protocol, the addition of rETH as a collateral type for the Spark Protocol further strengthens MakerDAO’s commitment to offering a variety of collateral options for borrowing the DAI stablecoin. be done.
Sam MacPherson, CEO of Phoenix Labs, a major contributor to the Spark Protocol, hailed the development as a step forward for liquid staking options on Ethereum.
Mr McPherson said:
“This will not only diversify our liquid staking options on Ethereum, but also increase the decentralization and security of our system. It offers another way to borrow DAI and take advantage of leading interest rates, thanks to Spark’s unique position to do so.”
The onboarding of rETH as collateral coincides with Maker Governance’s decision to increase the amount of DAI that the Spark protocol can borrow, strengthening the symbiotic relationship between the two DeFi platforms.
Launched in May, Spark Protocol quickly made a name for itself by providing the infrastructure for Spark Lend, a decentralized lending marketplace focused on DAI. In addition to facilitating direct borrowing of DAI for various assets, users can deposit his ETH, earn commissions, take advantage of the recently increased DAI Savings Rate (DSR), and save his money without slippage. You can also exchange stablecoins such as DAI and USDC.
MakerDAO Real World Wealth Strategy
The expansion comes as MakerDAO continues to strengthen its Treasury holdings in US Treasuries. MakerDAO has increased its U.S. Treasury holdings from $500 million to $1.2 billion in recent months, demonstrating a strategic shift to traditional low-risk assets as a way to diversify its collateral pool.
MakerDAO’s decision to expand its exposure to real-world assets follows an incident that saw its stablecoin, DAI, temporarily lose parity with the US dollar. The move to diversify its holdings is seen as part of MakerDAO’s broader strategy to increase its resilience in the face of market volatility.
Allan Pedersen, CEO of Monetalis Group, which executed the bond purchase on behalf of MakerDAO, said the decision was a “strong, reliable and flexible solution” to generate more revenue for the protocol.