There was a proposal for Aave to add rETH to aave, which was mostly abandoned a while back.
It seems (aside from my own comment), that there is some renewed interest in the forums. I would like to see rETH added to aave on ethereum mainnet, polygon, arbitrum, avalance, and optimism given that rETH is available on many of these side chains/L2 chains. If not for some kind of APY yield, at least it could be provided as collateral to loan ETH or other assets.
Additionally, I would like to get RPL added to aave as well, which would allow a user to deposit to an L2 DeFi for cheap and earn a bit of interest to borrow RPL if people want to earn some yield on it. I believe that would increase the value of the RPL token, but also provide a way to store RPL, over-collateralize, and pay down those loans. This would add value to RPL by providing additional liquidity and yield for those that don’t want to run a node, but want to increase the utility of RPL.
I’d like Langers to pick that back up if possible and see if we can get that accepted. It would significantly help solve some of the node operator supply-side issues and help stakers over-collateralize.
Essentially, if I were able to do this, I could swap ALL of my USDC and DAI I’m holding as collateral with rETH as collateral, that I can then borrow ETH to run a minipool, which would remove some liquidity from LP pools and earn a compounded yield as long as there was enough liquid ETH to keep the borrow rates lower than the yield rates.
I believe it would also help secure the pool further as more people would be locking up ETH and RPL in node contracts.