Maple Finance, an onchain asset manager overseeing more than $2.2 billion, has partnered with Lido Finance to provide stablecoin credit lines backed by staked Ether (stETH) collateral. Lido is the largest liquid staking protocol, with nearly $25 billion in total value locked (TVL).
stETH is a token issued by Lido that represents Ethereum (ETH) locked in Ethereum’s staking system, where it earns rewards. With this new initiative, institutional borrowers can now get liquidity without selling their stETH – letting them keep their investment and continue earning ETH staking rewards, according to a press release viewed by The Defiant. Borrowers will also be able to use stETH as collateral for loans approved by Maple’s credit team.
The move reflects a growing trend in decentralized finance (DeFi) that enables institutions to access liquidity without sacrificing yield opportunities.
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