Raft has launched a new stablecoin called R, which is backed by Lido's staked ether (stETH). The stablecoin uses both hard and soft peg mechanisms to maintain a price of around $1. Raft's stablecoin is the first to be collateralized by stETH.

Unlike stablecoins backed by traditional assets, such as US Treasuries, Raft's stablecoin and MakerDAO's DAI are collateralized by unrelated entities, while Do Kwon's UST, which was backed by his own token, collapsed a year ago. Raft's lending protocol allows users to deposit stETH and borrow a minimum of $3,000.