DeFi giant MakerDAO on Friday approved a proposal to adopt an alternative to Lido-Staked Ethereum (stETH) as collateral, following the token’s de-peg.
In a governance proposal that saw 64% approval by the MakerDAO community, the platform approved Rocket Pool ETH (rETH) as a new vault type, or collateral.
rETH behaves similarly to stETH, in that it trades at a 1:1 ratio with ETH, and can be redeemed for staked ETH once the merge goes live. The token is issued by staking protocol RocketPool, which is based on specifications by ETH creator Vitalik Buterin.
rETH is trading at $1,093, just a few dollars off ETH prices. In comparison, stETH is trading at 0.94 of ETH.
MakerDAO seeks to cut stETH exposure
The proposal to adopt rETH represents the latest step by the largest DeFi protocol to reduce the fallout from a potential insolvency of crypto lender Celsius and Three Arrows Capital.
