Objective
Add support for Redacted’s pxETH market on Venus Protocol upon launch of the Dinero Protocol on Ethereum mainnet.
Rationale
Redacted Finance is a well-established and widely recognized DeFi protocol in the decentralized finance ecosystem.
The demand for innovative solutions that enrich the Ethereum user experience in DeFi is accelerating. Most notably, a challenge facing users is the lack of flexibility in staking Ethereum. The lack of competition in the liquid staking vertical has led to monopolization, which poses its own set of risks to the overall DeFi ecosystem.
In response to these challenges, Redacted has built a new type of Liquid Staking Token for ETH, called Pirex ETH or pxETH. Currently live on testnet, pxETH is designed to bridge Ethereum staking and DeFi in a way that allows users to make optimal use of their ETH holdings.
Our hope, with pxETH and Dinero, is to deliver a holistic solution that combines several useful and capital efficient tools under a singular easy-to-use protocol, while contributing to true decentralization of the Ethereum ecosystem and the liquid staking landscape.
By staking, users commit their ETH to a Dinero validator and receive pxETH (a receipt token) in return. This token serves as a representation of your staked ETH within Dinero and can be traded and, within Venus used as collateral for lending and borrowing.
pxETH is built with the pure intention of composability within DeFi protocols.
Motivation and Advantage
By integrating pxETH and Venus markets, users will be able to earn lending APY on their staked pxETH holdings, loop yield and borrow other assets. Furthermore, supporting pxETH would also enhance Venus Protocol’s overall liquidity and trading volume.
Conclusion
Adding support for pxETH on Venus Protocol upon launch would provide users with immediate access to a wider range of investment opportunities, enable them to earn lending APYs, contribute to decentralization of the liquid staking landscape and enhance the liquidity and trading volume within Venus.