ClayStack raises $5.2M for liquid staking protocol

ClayStack raises $5.2M for liquid staking protocol

Cryptocurrency staking protocol ClayStack has secured $5.2 million in seed funding from several prominent blockchain investor funds, putting it on course to introduce new innovations in staking later this year.

The seed round was co-led by CoinFund and ParaFi Capital, with around a dozen other venture funds also participating, ClayStack announced Tuesday. Most notably, Coinbase Ventures, Solana Foundation, Hashed and Spartan Group were among the investors.

Our top trading bots

On an individual level, some of the seed investors who participated in the round include Meltem Demirores of CoinShares, Aave founder Stani Kulechov, Solana co-founder Raj Gokal and Sandeep Naiwal, the co-founder of Polygon.

Staking allows investors to earn passive income or interest on their crypto by locking up their holdings for a specific period. In the process, stakers have the opportunity to participate in network governance and other consensus-taking processes.

The ClayStack protocol promotes a method called liquid staking, which allows users to stake cryptocurrencies without the liquidity lockup that’s characteristic of many networks. Santiago R. Santos, a general partner at ParaFi Capital, said “liquid staking is becoming increasingly important in a multi-chain world.”

ClayStack founder and CEO Mohak Agarwal noted that the need for liquid staking is becoming more apparent as the market for decentralized finance, or DeFi, continues to grow:

“The merging of DeFi and staking is a paradigm shift in cryptocurrency and this investment round will enable us to innovate from a position of strength as we head into our alpha launch.”

Related: Crypto staking rewards and their unfair taxation in the US

ClayStack is planning to release the alpha version of its staking protocol in the third quarter of this year.

Venture funds have poured billions of dollars into budding crypto startups this year, signaling heightened investor interest in transformative blockchain technology. One of the most prominent blockchain venture plays has come from Andreessen Horowitz, which recently launched a $2.2 billion fund earmarked for crypto startups.

Read on concerning Cointelegraph
John McAfee’s suicide reports raise disbelief, spark conspiracy theories
Often a figure of ridicule within the crypto community thanks to his outlandish predictions as well as being a larger-than-life personality, John McAfee...
Is there a right way to regulate crypto? Yes, and this is how
Cryptocurrency is becoming increasingly mainstream. Between the entrance en masse of traditional financial institutions — from investment funds, to banks,...
Solana Labs raises $314M via private token sale as ecosystem support expands
Cryptocurrency venture capital funds have poured hundreds of millions of dollars into Solana Labs to support further development and execution of decentralized...
China to socially blacklist Bitcoin miners in Inner Mongolia region
China has ramped up efforts to quash cryptocurrency mining in its Inner Mongolia region by introducing new penalties for those caught engaging in the illegal...
XRP Climbs 17% In a Green Day
Investing.com - XRP was trading at $1.23715 by 08:45 (12:45 GMT) on the Investing.com Index on Thursday, up 16.74% on the day. It was the largest one-day...
Banking system consumes two times more energy than Bitcoin: research
Amid the ongoing concerns over Bitcoin's (BTC) energy consumption, a new study states that the traditional banking system consumes much more energy than...
EOS and YFI lead altcoins higher as Bitcoin and Ether bounce from swing lows
The markets were mixed on May 11 as Bitcoin (BTC) recovered from Monday's drop to $53,000 by bouncing to $56,862 but the digital asset is still finding...
BTC price nears $60K showdown: 5 things to watch in Bitcoin this week
Bitcoin (BTC) is challenging familiar but significant all-time highs as a new week gets underway, rallying to $58,000 on Monday.After a surprise rally on...
Swiss Stock Exchange SIX and Borse Xetra list physically backed Ether ETP
New York-based exchange-traded product sponsor and asset manager WisdomTree is expanding its digital assets range with the launch of a new Ether (ETH) exchange-traded...
Price analysis 4/23: BTC, ETH, BNB, XRP, DOGE, ADA, DOT, UNI, LTC, BCH
As Bitcoin price crashed below $50,000, mainstream media highlighted that the selling across the market could have been triggered by reports that the Biden...
Experts debate whether NFTs really need blockchain
At the BlockDown 2021 conference, EllioTrades, a crypto YouTuber and co-creator of the Superfarm NFT project, joined a debate about the value of nonfungible...
PancakeSwap (CAKE) aims to take a slice out of Uniswap’s DeFi dominance
Decentralized finance has taken a back seat to nonfungible tokens over the past month but this hasn’t stopped the top DeFi projects from developing and...
What To Expect From A Cryptocurrency Market In 2020
Crypto market has always been a good target for speculation, shady schemes, and "bad guys". It's also very controversial, especially for financial markets...
South Korean Exchanges to Pay 24% Taxes on Cryptos As Officials to Declare Bitcoin Holdings
Last week was one of the breakneck fluctuations in the prices of all virtual coins, including bitcoin. However, the downhill swings were prevailing,...
Ethereum’s Per-Coin Value Broke $1,000
As we have noticed, the first month of 2018 gave us a huge number of records. Here are the general capitalization of cryptocurrencies, and Ripple, and Stellar.Ethereum...