MakerDAO (MKR) has announced that Spark Protocol is onboarding Rocket Pool’s staked Ethereum (rETH) as a new collateral type, creating increased opportunities for users to leverage their digital assets in the DeFi ecosystem.

Expanding the lending ecosystem

Founded in 2015, MakerDAO is best known for issuing the decentralized stablecoin, DAI. The latest development in its partnership with Spark Protocol allows users to utilize their rETH holdings as collateral to borrow DAI at competitive rates, while simultaneously earning staking yield.

Rocket Pool (RPL) is a decentralized Ethereum staking pool that provides users with rETH, a tokenized version of staked Ethereum. With over 740,000 ETH currently staked in the protocol, the addition of rETH as a collateral type on Spark Protocol furthers MakerDAO’s commitment to providing diverse collateral options for borrowing its DAI stablecoin.

Sam MacPherson, CEO of Phoenix Labs, the leading contributor to Spark Protocol, hailed the development as a step forward for Ethereum’s liquid staking options.

MacPherson stated:

“This not only diversifies Ethereum’s liquid staking options but also strengthens the decentralization and security of our system. For DeFi users, this offers another means of borrowing DAI and availing of leading interest rates thanks to Spark’s unique position in securing liquidity directly from the Maker Protocol’s credit line.”

The onboarding of rETH as collateral coincides with Maker Governance’s decision to increase the amount of DAI that Spark Protocol can borrow, reinforcing the symbiotic relationship between the two DeFi platforms.

Launched in May, Spark Protocol has quickly made a name for itself by providing the infrastructure for Spark Lend, a decentralized lending marketplace with a focus on DAI. In addition to facilitating direct borrowing of DAI against various assets, users can also deposit ETH, earn fees, avail of the recently increased DAI Savings Rate (DSR), and swap stablecoins such as DAI or USDC with no slippage.

MakerDAO’s real-world asset strategy

This expan

Go to Source to See Full Article
Author: Jacob Oliver

Did you like this?
Tip BTC Newswire with Cryptocurrency

• Bitcoin
• Bitcoin Cash
• Ethereum
• Litecoin
• Monero
• ZCash

Donate Bitcoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Bitcoin Cash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Ethereum to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Ether:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Litecoin to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate Monero to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some Monero:

Donate via Installed Wallet Copy

[X] Click Here to Hide Donation Details

Donate ZCash to BTC Newswire

Scan the QR code or copy the address below into your wallet to send some ZCash:

Copy ZCash Address

[X] Click Here to Hide Donation Details