MakerDAO-powered lending platform Spark Protocol onboards Rocket Pool staked ETH as collateral option

MakerDAO (MKR) has announced that Spark Protocol is onboarding Rocket Pool’s staked Ethereum (rETH) arsenic a caller collateral type, creating accrued opportunities for users to leverage their integer assets successful the DeFi ecosystem.

Expanding the lending ecosystem

Founded successful 2015, MakerDAO is champion known for issuing the decentralized stablecoin, DAI. The latest improvement successful its concern with Spark Protocol allows users to utilize their rETH holdings arsenic collateral to get DAI astatine competitory rates, portion simultaneously earning staking yield.

Rocket Pool (RPL) is simply a decentralized Ethereum staking excavation that provides users with rETH, a tokenized mentation of staked Ethereum. With implicit 740,000 ETH presently staked successful the protocol, the summation of rETH arsenic a collateral benignant connected Spark Protocol furthers MakerDAO’s committedness to providing divers collateral options for borrowing its DAI stablecoin.

Sam MacPherson, CEO of Phoenix Labs, the starring contributor to Spark Protocol, hailed the improvement arsenic a measurement guardant for Ethereum’s liquid staking options.

MacPherson stated:

“This not lone diversifies Ethereum’s liquid staking options but besides strengthens the decentralization and information of our system. For DeFi users, this offers different means of borrowing DAI and availing of starring involvement rates acknowledgment to Spark’s unsocial presumption successful securing liquidity straight from the Maker Protocol’s recognition line.”

The onboarding of rETH arsenic collateral coincides with Maker Governance’s determination to summation the magnitude of DAI that Spark Protocol tin borrow, reinforcing the symbiotic narration betwixt the 2 DeFi platforms.

Launched successful May, Spark Protocol has rapidly made a sanction for itself by providing the infrastructure for Spark Lend, a decentralized lending marketplace with a absorption connected DAI. In summation to facilitating nonstop borrowing of DAI against assorted assets, users tin besides deposit ETH, gain fees, avail of the precocious accrued DAI Savings Rate (DSR), and swap stablecoins specified arsenic DAI oregon USDC with nary slippage.

MakerDAO’s real-world plus strategy

This enlargement comes arsenic MakerDAO continues to bolster its ain treasury holdings with U.S. authorities debt. In caller months, MakerDAO has accrued its holdings of U.S. Treasury bonds from $500 cardinal to $1.2 billion, marking a strategical pivot towards traditional, low-risk assets arsenic a mode of diversifying its collateral pool.

The determination to grow MakerDAO’s vulnerability to real-world assets was made pursuing an incidental wherever its stablecoin, DAI, momentarily mislaid parity with the U.S. dollar. This determination to diversify its holdings is seen arsenic portion of MakerDAO’s broader strategy to go much resilient successful the look of marketplace volatility.

Allan Pedersen, CEO of Monetalis Group, which carried retired the enslaved acquisition connected behalf of MakerDAO, described the determination arsenic a “strong, reliable, and flexible solution” that volition make much gross for the protocol.

The station MakerDAO-powered lending level Spark Protocol onboards Rocket Pool staked ETH arsenic collateral option appeared archetypal connected CryptoSlate.