Euler becomes the first major DeFi lending protocol to accept cbETH as collateral.
The latest platforms that support cbETH include Euler, which is a permissionless lending protocol built on Ethereum. As the first major lending protocol to accept cbETH as collateral, users have the opportunity to execute various trading strategies:
· Deposit cbETH to earn lending APY. Users can also receive staking rewards (4-6%) for cbETH and lending APY (average of 80 basis points) from Euler at the same time.
· Deposit cbETH and mint EUL. Borrowers of cbETH earn EUL with limited price risk.
· Leveraged long position on cbETH/ETH. Users can use cbETH as collateral to trade up to 2.75 times their long position on ETH.
"Since Euler is currently the only DeFi protocol that offers integrated cbETH options, traders can now access a wealth of new on-chain opportunities," said Michael Bentley, CEO and co-founder of Euler Labs. "In addition, by enabling cbETH as collateral, Euler has released approximately $300 million worth of ETH collateral, which is a huge net efficiency gain for the entire DeFi ecosystem."
Even in the months following the merger, the demand for options on Ethereum collateral liquidity remains high. In fact, Nansen's blockchain data analysis conducted in October 2022 found that despite being the newest asset, the supply of cbETH has already surpassed all other assets except stETH, with a growth of 43.3% in just three months. As of today, the existing supply of cbETH exceeds 1 million.
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