Mainnet rETH Liquidity Recovery

Liquid Staking Experience
1

Background

After the Balancer hack, rETH mainnet liquidity dropped sharply from $30M+ to around $2.5M+. Although the @IMC reacted quickly by introducing incentives, insufficient rETH liquidity depth has now been noticed by ETH+ and several ETH strategy protocols.

We also reviewed the Gnosis position. As one of the former top rETH liquidity providers, Gnosis no longer holds rETH after changing its treasury manager. They are currently reallocating ETH LST exposure and swapping into Gnosis-related tokens instead.

This post is created to:

  • Open discussion on rETH mainnet liquidity recovery
  • Track ongoing progress
  • Provide visibility for interested and affected protocols

Current Pools & TVL

Potential Actions & Ideas

  • RockSolid Vault: Explore whether ~10% of the vault allocation could be used to provide LP liquidity. Current yields appear relatively attractive. Additionally, consider whether Fluid could be in scope, as Fluid can borrow ETH against LP positions. @paladin147
  • LP APR Promotion: Actively promote LP APR metrics to attract liquidity providers.
  • Re-engage Previous LPs: Reach out to former major LPs and pitch re-participation under the new pool and incentive structure.

Feedback, additional ideas, or updates are welcome.

3 Likes
Star Round 2 Weekly Update
2

RockSolid rETH vault will deposit to Balancer.

Will review Curve, Uniswap and Fluid.

3 Likes
3

Hello Rocket Pool team,

I’m Marcus from Balancer. First of all, thank you for the long standing partnership and the trust you’ve placed in us. We are confident we can work together to bring liquidity back.

Beyond the APR coming from voting incentives, we will also run an additional four week campaign on mainnet: $2k per week for weeks 1 and 2, then $3k per week for weeks 3 and 4. We hope this helps accelerate the liquidity recovery.

Also sharing our Balancer v3 security one pager. We know DeFi savvy teams already understand the differences, but we have had partners ask for something they can forward to LPs.

Please know you can always count on us.

1 Like
4

Update:

thanks to @paladin147 and @Marcus_balancer for the quick support :raising_hands:

2 Likes
5

Hey everyone. Happy New Year.

Quick update from our side. As briefly mentioned on our Telegram, we decided to postpone the start of the incentives until after the holiday period, rather than kicking things off at the very end of last year.

The campaign will go live this Thursday, following the exact same plan previously shared.

We are looking forward to helping bring liquidity back and continuing to support the pool. You can count on us.

Cheers

1 Like
IMC 43 Report; Period 44 Budget