Ethereum 2.0 DeFi protocol Stakewise announced a successful $2 million private fundraise ahead of its public launch.
The protocol is designed to make staking easier for Ethereum users ahead of its Etherum 2.0 proof-of-stake upgrade. This upgrade consists of users staking their ETH to run nodes instead of “miners” that utilize massive computing power to process blocks and validate transactions.
The funding round was led by Greenfield One. Collider Ventures, Gumi Cryptos, Lionschain Capital and a number of private investors also contributed according to the press release.
StakeWise co-founder Dmitri Tsumak spoke on where the protocol is headed. “We’ve made StakeWise into a protocol where users can earn elevated yields and gain unparalleled control over their staked capital.”
StakeWise offers liquid ETH2 staking, allowing users to continue using their locked ETH in DeFi. They claim it offers advantages over other Ethereum 2.0 staking platforms. Via a “unique tokenomics model and commitment to give majority voting power to the community.”
Ethereum 2.0 Staking is A Competitive Field
Staking on Ethereum 2.0 is a competitive field with the likes of Lido, Ankr, and RocketPool among the major players.
StakeWise emphasizes yield strategy optimization, ease of use, and transparent DAO governance. They also announced that DAO members would be responsible for the choice of oracles, node operators, and StakeWise’s fee structure.
Additionally, the protocol announced the release of its governance token $SWISE. The first 25,000 ETH deposited to the StakeWise Pool will be eligible for a distribution of 2% of the $SWISE token supply. The firm added that rewards will be proportional to the amount deposited.
The Ethereum 2.0 upgrade is aimed at addressing the smart contract platform’s scalability, speed, and efficiency. The upgrade as a whole is being rolled out in three phases.
Furthermore, data from Dune Analytics shows that demand for Ethereum 2.0 is running high. There is currently more than $3 million ETH locked in the deposit contract.