MakerDAO takes action to support decentralization in Ethereum
New York City: Rocket Pool staked ETH (rETH) has been implemented as a new collateral type on the Maker Protocol. This enables users of the DeFi platform to make use of a liquid staking derivative, which in turn helps to further decentralization.
The decentralization of the Ethereum network is being actively supported by MakerDAO’s actions.
Yesterday, November 21st, the number one DeFi protocol, MakerDAO, went to Twitter to make the announcement that it has introduced support for Rocket Pool’s ETH liquid collateral derivative rETH as collateral. This support was implemented earlier this week.
As a direct reaction to this, the widely used Oasis.app, which serves as a gateway for MakerDAO, has included support for rETH. Users now have the ability to mint Maker’s DAI stablecoin using the rETH token by using it as collateral. Users may also get exposure leverage for rETH by using the “Multiply” option that is available on Oasis.
It’s possible that MakerDao’s goal with this acquisition is to take a significant portion of Lido’s market share. Maker, which has $6.5 billion in total token value (TVL), enables users of DeFi to employ a liquid staking derivative that supports decentralization by providing support for rETH.
This was backed in their Twitter thread from yesterday, which said:
MakerDAO has issued a statement expressing its commitment to the decentralized development of the Ethereum network. It is essential that there be a diverse group of people operating Ethereum nodes in order to accomplish this goal. In addition to this, there must be an increase in accessibility for staking.
In addition, they said that “@Rocket Pool democratizes involvement in Ethereum’s validation and node operation.” Anyone may become a node operator via the use of the Rocket Pool protocol with just 16 ETH, which is only half of the amount of ETH that is necessary to operate a standard Ethereum node. Anyone may bet as little as 0.01 ETH, and that includes speculators!
Therefore, users of MakerDAO who mint DAI against rETH run the risk of having their accounts liquidated if the value of their collateral is less than 170% of their total outstanding DAI. By supporting rETH, you are helping to stop the dominance of other derivatives in the cryptocurrency market.
The Chief Executive Officer of Oasis.app first brought out the significance of assisting liquid staking derivatives such as rETH. He said, “It’s nice to be supporting another liquid staking derivative, this time in the shape of rETH — particularly with the current worries regarding the dominance of other derivatives in the industry,” and “It’s great to be supporting another liquid staking derivative.”
He went on to say that in contrast to other staking protocols, Rocket Pool offers an infrastructure that enables users to run independent Ethereum nodes. As a result, it garners support from those who are enthusiastic about decentralization.
Rocket Pool is certain that the connection with MakerDAO will be the first of many premium DeFi integrations for its rETH coin, and they are enthusiastic about this prospect.
The protocol has been waiting for Chainlink to establish an oracle that would offer data on rETH. This will make it simpler for developers to monitor the price of the token.
According to a source, the debut of the oracle is “any day” away at this point. He said that the company had completed the development work and was very close to being able to launch it.
In June, the community for Aave, the leading DeFi money market, also decided to bring rETH aboard. This means that Aave launch support for rETH might come shortly after the oracle goes online, if it happens at all.