YieldFest Part 1: Start Earning Yield with Rocket Pool’s rETH and Morpho’s sUSDe/DAI on Hyperdrive
YieldFest is officially underway! We’re thrilled to announce that Rocket Pool ETH (rETH) and Morpho’s sUSDe/DAI are both now available to Hyperdrive users.
YieldFest is officially underway! To kick off our celebration of the many new yield opportunities being added to the Hyperdrive Protocol (developed by DELV and this instance operated and managed by the Element DAO), we’re thrilled to announce that Rocket Pool ETH (rETH) and Morpho’s sUSDe/DAI are both now available to users. That means you can acquire, deposit, trade, and gain access to new yield opportunities with rETH and sUSDe/DAI through Hyperdrive.
"We’re so happy to kick off YieldFest with our friends at Rocket Pool and Morpho,” said Charles St. Louis, CEO of DELV. “Now that rETH and sUSDe/DAI have been added to the platform, the community has access to even more opportunities to earn yield and support their preferred financial strategies. This is just the start of Hyperdrive's growth and we're proud to be a part of building a better DeFi environment for all."
What is rETH?
rETH is a tokenized form of staked Ether (ETH) from Rocket Pool, a decentralized Ethereum staking protocol. By holding rETH, users may earn staking rewards without having to run their own validator nodes. That’s one of the reasons rETH is considered such a popular option for earning yields while maintaining liquidity.
With the integration of rETH, Hyperdrive users can now access yield rewards directly through Hyperdrive. By staking rETH in liquidity pools, LPs can earn yields on their assets and enjoy their returns.
What is sUSDe/DAI?
Ethena Staked USDe (sUSDe) is a synthetic dollar issued by the Ethena protocol. sUSDe attempts to achieve stability by using delta-neutral ETH and BTC positions on centralized exchanges. In this new integration with Hyperdrive, sUSDe will function as collateral for the Morpho market, and users will supply that market using DAI.
DAI is a decentralized stablecoin created by the MakerDAO protocol that’s also pegged to (but not backed by) the U.S. dollar, and works to maintain its peg through an over-collateralization system and decentralized governance by MKR token holders.
Combining the strengths of sUSDe and DAI, Morpho allows users to borrow DAI against their yield-earning sUSDe positions. Put simply, the sUSDe/DAI Morpho market increases versatility in DeFi markets.
Morpho is a trustless and efficient lending primitive that allows users to pursue their strategies to generate returns for staked assets and find significant opportunities for liquidity providers.
"We're excited to see innovative projects like DELV building on top of Morpho to enhance its core capabilities,” explained Paul Frambot, CEO & Co-founder of Morpho Labs. "The fixed rates offered by DELV, built on top of Morpho markets, are a great example of how diverse use cases can be created around one core primitive."
How to Get Started with rETH on Hyperdrive
Rocket Pool prioritizes staking rewards and efficient distribution. And we’re committed to providing a fantastic user experience. DELV’s intuitive Hyperdrive interface makes it simple to take advantage of new yield opportunities with rETH.
If you’re a liquidity provider, here’s how it works:
- Acquire rETH by staking ETH through RocketPool, or you can acquire it through an AMM. Once you have rETH in your wallet, you’re ready to roll
- Access the Hyperdrive app
- Deposit rETH through Hyperdrive
- Earn yield with rETH staked on Hyperdrive. You’ll gain returns from staking and trading fees
Enjoy ever-lasting liquidity—your rETH rolls over into the next liquidity pool so you can keep earning yield.
And if you’re a trader, here’s what you can do:
- Access the Hyperdrive app
- Deposit rETH on Hyperdrive
- Open a long position at a fixed rate or a short position at a variable rate for the term-length you want
- Earn a return when your position is closed
How to Get Started with sUSDe/DAI on Hyperdrive
sUSDe will serve as the collateral for the Morpho market and Hyperdrive will be supplying DAI to that market. That means you only need DAI to participate, and it’s a simple process.
If you want to provide liquidity, here’s how it works:
- Acquire DAI by purchasing or borrowing
- Access the Hyperdrive app
- Deposit DAI on Hyperdrive
- Earn yield with DAI staked on Hyperdrive. You’ll gain returns from staking and trading fees
And if you’re a trader, here’s what you can do:
- Access the Hyperdrive app
- Deposit DAI on Hyperdrive
- Open a long position at a fixed rate or a short position at a variable rate for the term-length you want
- Earn a return when your position is closed
These additions present terrific new opportunities for liquidity providers and traders–-and we’re just getting started. YieldFest is rolling on, so stay tuned to hear about the many new yield sources being added to the mix over the next few weeks and months.
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Note: This blog post is general in nature and for informational purposes only. It is not legal, tax, investment, financial or other advice, nor is it a comprehensive or complete statement of the matters discussed. It is not a recommendation of an investment strategy and should not be used as the basis of any investment decision.
All transactions and investments involve risk, and past performance does not guarantee future results. Certain complex strategies carry additional risk and are not appropriate for all users. As with any DeFi or crypto position, you may incur losses. You alone are responsible for evaluating the benefits and risks associated with any decision to use Hyperdrive and the risks or concerns with any underlying yield source.
Hyperdrive is not currently available in certain jurisdictions, such as the USA and the UK.