MakerDAO, the longest-standing DeFi lending protocol and creator of DAI, the original decentralized stablecoin, has today announced that Spark Protocol has onboarded Rocket Pool staked ETH (rETH) as the latest collateral type accepted on the platform. Spark users can now utilize their rETH as collateral to borrow DAI at the most competitive rates available in DeFi, while their rETH continues to earn staking yield while deposited.
Rocket Pool is a decentralized Ethereum staking pool offering a liquid staking derivative, rETH, with each token representing one ETH staked through Rocket Pool. The decentralized protocol holds a total supply of more than 740,000 ETH staked. The acceptance of rETH on Spark Protocol represents MakerDAO’s commitment to diversifying the collateral options available for borrowing its DAI stablecoin.
Sam MacPherson, CEO of Phoenix Labs, the development team that’s the leading contributor to building Spark Protocol, said: “We're excited to expand our collateral options with the addition of rETH. This development 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."
In addition to the onboarding of rETH as collateral, Maker Governance also approved an extension of Maker’s credit line to Spark Protocol, increasing the amount of DAI possible to borrow from 5 million DAI to 20 million DAI.
Launched in May, Spark Protocol provides the underlying infrastructure for Spark Lend, a decentralized lending marketplace with a particular emphasis on DAI. Spark marks the first native front-end interface for users to directly borrow DAI against other assets, deposit ETH and earn fees, avail of the recently increased DAI Savings Rate (DSR), and swap stablecoins such as DAI or USDC with no slippage.
