MakerDAO launches LSD Token of Rocket Pool
MakerDAO, a DeFi protocol, has accepted the LSD token of Rocket Pool. This deal might elevate the competition for the giant Lido, MakerDAO. Users can use the token, rETH, to mint the stablecoin of Maker’s DAI.
A well-known portal of MakerDAO, the Oasis.app, would also support rETH. With the help of the “Multiply” feature of Oasis, users could leverage rETH. Recently, the Maker has $6.5 billion in total value locked (TVL), and after supporting rETH, DeFi users will be able to use an LSD, promoting decentralization. The Chief Executive Officer of Oasis.app, Chris Bradbury, stated that it is beneficial to support other liquid staking derivatives, and this time it is in the form of rETH. This is precisely in response to the worries that other derivatives have over dominance in the sector.
The users of MakerDAO who were minting DAI for rETH would face liquidation if their collateral was worth less than 170% of their remaining DAI. With the integration of Maker, Rocket Pool hopes that this will be the first of various high-profile DeFi integrations for the rETH token. But this protocol is also waiting for Chainlink to add an oracle that gives rETH data so that developers can easily keep track of the price of the token.
In contrast to existing staking protocols, Rocket Pool provides the infrastructure for users to operate decentralized Ethereum nodes, earning the support of decentralization enthusiasts.