Staked Ether (stETH) has become the collateral of choice for various decentralized finance (DeFi) protocols, including Aave V3, Spark, and MakerDao. Currently, there are 1.3 million stETH locked into Aave V3, 598,000 stETH locked into Spark, and 420,000 stETH locked into MakerDao. These stETH tokens are used as collateral to issue loans or crypto-backed stablecoins.
By locking stETH into these protocols, users can access liquidity without having to sell their ETH holdings. This allows them to maintain their exposure to ETH while leveraging their assets to access additional capital.
With the growing popularity of stETH as collateral in DeFi, it is expected to play a significant role in the ecosystem’s development. As more users lock their stETH into protocols, the total value locked in DeFi is likely to increase, further fueling the growth of the space.
Overall, stETH has proven to be a valuable asset in the DeFi landscape, offering users a way to unlock liquidity while maintaining their exposure to ETH. As more protocols integrate stETH as collateral, its utility and value are expected to continue to grow.
