Add rETH and potentially RPL as options for collateral to various DeFi platforms

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.

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I would be thrilled to use my rETH in L2 DeFi! How can this be moved forward?
Here is the Thread in the aave Forum:
They seem to be waiting for us!


yeah, the aave proposal from the rpool team is part of why I raised this. I was hoping that we could keep the ball rolling forward and I wanted to make sure that it would be possible to use as collateral on various L2s.

GM @jiron and @khrystoph ! Totally agree with you. Has there been any advancement on this front? I thought you may be interested in this - - use your rETH as collateral to borrow any other digital asset, wETH, USDC etc with no liquidations. Using rETH in DeFi is the way to go!