Cap USD: Expecting to provide ~3% USD yield based on the Symbiotic rETH vault — currently pending the launch of a new vault and $10M liquidity. In discussion with Gauntlet to resolve.
Stream Finance xETH: The goal was for xETH to integrate rETH via the RockSolid vault, but since the current 14% APR doesn’t meet xETH’s 20% requirement, this is now closed.
Avant avETH: Established connection and scheduled a meeting next week.
Gauntlet: Ongoing discussions about Symbiotic vault possibilities and corresponding NOs.
Octant: Vault integration with rETH staking confirmed, but pending on specific co-marketing execution. If the team can’t proceed due to constraints, I’ll help promote it within the community to show support.
Kiln: thanks for the @drdoofus reminder. Started connecting with NOs, hoping to bridge via Gauntlet.
Other Updates
Yo yETH: interested in opting into the RockSolid vault, pending APR calculations and integration.
First, a quick clarification regarding Stream Finance. Throughout our collaboration with Stream Finance, the discussion has always been about integrating rETH into xETH — not about RockSolid integrating xETH. During our review of Stream Finance, we also identified that it uses substantial leverage, and we categorized its asset profile as high risk.
Regarding feedback for Rock Solid Vault, two requirements were raised:
APR calculation – this has already been clarified.
Loop support – would like leverage support, such as rETH/rock.rETH market on morpho
In addition, yo protocol has already completed the integration and is currently awaiting allocation.
Fluid
Because of the recent Balancer exploit, Fluid came again to pitch the idea of building liquidity on top of it. However, Fluid itself also experienced an exploit in the past. cc @IMC
Avant
We discussed the possibility of expanding rETH to Avalanche and applying for AVAX grant incentives. In addition, avUSD remained stable during the recent stablecoin deleveraging and currently holds over 35M in ETH exposure, so we also explored the potential for increasing its rETH allocation.
Reserve bsdETH
Due to budget constraints, the team @langers is currently unable to cover the audit costs, so the process is on hold for now. We will consider alternative ways to move it forward, such as leveraging OP’s audit incentive programs.
OP Treasury ETH Liquid Staking RFQ
The information has already been submitted by @maverick . To avoid duplicate submissions, I’ve linked the previous proposal. I will continue to track the progress going forward.
Gnosis LP position was not affected by the Balancer exploit, however, they haven’t added liquidity to the new pool, and their rETH has been swapped for wstETH.
I’ve spent some time building a Rocket Star website that showcases all organizations and protocols holding rETH. The goal is to highlight and appreciate their contributions to decentralized ETH staking, and to give them the recognition they deserve.
I also hope this can help amplify the narrative across social media and the broader community.
If I’ve missed any data, feel free to comment — I’ll gladly update it.
Avant’s avUSD includes an ETH-stable strategy (holding ETH LSTs while opening an ETH short on Hyperliquid), similar to what protocols like Ethena and Resolv use.
However, rETH has generally not been included — most protocols choose weETH or wstETH instead. Compared to those assets, rETH has disadvantages in both yield and peg stability, which makes it less attractive for these delta-neutral or stable-ETH strategies.
If a dedicated vault could be built specifically for rETH — either optimized for higher yield or stronger peg stability — it might help increase rETH’s share in this category of strategies.
The overall DeFi market is currently in a downturn, and the potential collaboration with Terminal on tETH integration into the Ethereal ecosystem has recently been closed. We are now exploring other L1 opportunities.
Since the liquidity is primarily supported externally, the previous sources were mainly Ethereum OGs. Their support was driven by their commitment to Rocket Pool’s decentralization; however, due to market conditions and yield factors, they have now exited:
The exited rETH is being gradually sold off or swapped into wstETH.
Liquidity shortage has now become a challenge for rETH. We have attempted to contact Spark, but they seem to have limited interest; Spark’s liquidity is primarily provided on Curve. A contact group has been established with @maverick .
Prime Asset
rETH is not currently being listed as a prime asset. In fact, there have been ongoing attempts to have Ethena and Resolv adopt rETH as part of their ETH stable strategies, but these have not been successful. For ETH stable strategies, most protocols increase their buying power for ETH and ETH LSTs when the ETH price rises rapidly and steadily, while simultaneously opening ETH short positions on Hyperliquid. However, when the ETH price trends downward—as seen in the past few days—these protocols reduce their ETH positions to mitigate risk by selling ETH and ETH LSTs.
The main reasons rETH hasn’t been included are depegging risks and the lack of a instant withdrawal. This will be addressed in the upcoming RPIP that supports withdrawal.
Furthermore, rETH’s exclusion from prime assets has led to very little exposure in markets like Morpho. Currently, rETH is only listed on Morpho Base and is absent from other chains.
Discussions with curators like Gauntlet indicate that this is mainly due to liquidity and peg stability; rETH is perceived as weaker in these areas compared to stETH and weETH (which supports instant withdrawals). WBETH is primarily supported as collateral on Binance.
Institutional lending protocols are a direction I am personally optimistic about. Maple’s growth over the past year suggests this is a viable path. Morpho and Aave are not particularly friendly to institutions due to their variable borrowing rates and unstable liquidity. In contrast, institutional-facing lending protocols solve this by providing fixed rates and ample liquidity. Some researched institutional lending protocols include:
Outreach for this sector is primarily via B2B emails, which are permissioned and require verification. The core team may need to submit some contact forms and collaborate on the follow-up. Furthermore, this could serve as a benefit for institutional adoption of rETH. cc @langers@maverick
Other Protocols
MakinaFi: A new protocol, but a recent exploit occurred; no further progress for now.
Aave V4: Expected to launch this year. Unsure if a previous contact group exists; currently trying to reach out to TokenLogic to understand and move this forward.
ETHGas: Requires verification; the contact form has been forwarded to @maverick .
We’ve established contact with them. Currently, they don’t have a strict list of requirements because their approach is very demand-driven.Their main focus is the borrowing amount. Essentially, as long as there are institutions holding rETH who want to use it for borrowing, they can structure a deal. cc @langers@maverick
EF Staking
Noticed that the Ethereum Foundation (EF) recently staked a large amount (2048 ETH), but they bypassed LST protocols entirely.
Furthermore, both Lido and StakeWise are now pushing Vault solutions specifically to capture this type of institutional/foundation staking. This is a trend we should keep an eye on.
OP Grant Season 9
OP Grant Season 9 applications are officially open. We are currently preparing our proposal with a focus on boosting rETH liquidity on Superchain.
Deal Pipeline (Excluding inactive ones; current Pending list)
Reserve (bsdETH Integration): This is currently pending due to audit budget, will try to use OP audit grant to cover it.
Cap USD: Regarding the Symbiotic Vault, the main blocker is that we lack a Curator to push user to migrate the $19M to a new vault to enable Cap restaking.
