Proposal: Support wstETH and stETH collateral on Venus on ETH Mainnet

Proposals
1

Summary

Add support for Lido’s stETH and wstETH markets on Venus Protocol on ETH mainnet

Rationale

stETH and wstETH are well-established and widely recognized tokens in the decentralized finance (DeFi) ecosystem.

StETH (staked Ether) is a token that represents your stake in the Ethereum network. By staking, commit your ETH to a validator and receive stETH (receipt token) in return. This token serves as a representation of your staked ETH and can be traded or used as collateral for lending and borrowing.

wstETH is a wrapped version of stETH. It’s more composable with DeFi protocols.

Motivations

By integrating stETH and wstETH into its markets, Venus Protocol would allow its users to earn lending APY on their staked ETH holdings, loop yield vs ETH and borrow other assets like stables for their daily operations. Furthermore, supporting these tokens would also enhance Venus Protocol’s overall liquidity and trading volume.

Conclusion

Adding support for stETH and wstETH tokens on Venus Protocol would provide users with access to a wider range of investment opportunities, enable them to earn lending APYs on top of staking rewards on Ethereum, and enhance the liquidity and trading volume on the platform.

8 Likes
2

I agree and it will be great

3

Very good proposal. Let’s add stETH and wstETH markets in Venus Protocol. There is definitely a borrow use case for these markets :slight_smile:

1 Like
4

This is a great offer. The assets have performed well and look promising. Just look at Curve

1 Like
5

two big project combines their power. it will be good to see yo enjoy venus protocol

6

When going crosschain to ETH, we need to enable more types of collateral.

Let’s do it!

7

Hey, Kenneth here. I am a Defi protocol relations contributor at LidoDAO.

Thank you for kickstarting this initiative Seraphim! I am fully supportive of this proposal as it aligns with the goals of the DAO of continuously enabling more avenues to utilise stETH.

With stETH being the highest demanded and used collateral in money markets (peek the stats here: https://dune.com/pipistrella/steth-collateral-compare-to-others), it definitely makes sense for Venus to enable stETH and wstETH as collateral when deploying on ETH mainnet.

Do reach out if you guys require any assistance from the DAO. Hope to see this proposal get through!