Indian-based cryptocurrency staking aggregator, Stader Labs, has completed a $4 million financing round. The round was led by Pantera Capitals and featured angel investors including Coinbase Ventures, True Ventures, Hypershare, TerraForm Labs, and the Solana Foundation.
Currently, the firm is beta-testing a staking platform that only supports the staking of Terra’s native token, LUNA. With the funds raised, it will fast-track development projects across multiple blockchain protocols including Ethereum, Near, and Polkadot. The firm will use the funds to conduct promotional campaigns and recruit more staff for the next phase of growth.
According to CEO and co-founder, Amitej Gajjala, Stader Labs raised the money through a Simple Agreement for Future Tokens (SAFT) sale.
Stader Labs to Improve User Experience When Staking
Gajjala stated that the current manual staking process is tedious. He believes that the user experience, when retailers and institutions stake their cryptocurrencies, can be improved. Likewise, he asserted that Stader Labs was positioned to improve that experience and aid a system-wide adoption of staking solutions.
Stader Labs pulls together decentralized finance (DeFi) protocols and applications to form a simple staking solution. This will help delegators in a bid obtain maximum returns. Currently, the company offers staking, liquid staking, derivatives, gaming, and high-yield strategies.
A report published by JPMorgan Chase in July estimated that Ethereum’s transition to a proof-of-stake consensus mechanism will boost staking payout from $9 billion to $20 billion. There are also indications staking will become more popular.
Similarly, Pantera Capital CEO Dan Morehead recently predicted Ether (ETH) will surpass Bitcoin (BTC) as the leading crypto asset. He cited the reduced energy consumption of Eth 2 and its potential impact on DeFi as the reason for the prediction.
If this becomes the case, then the demand for staking solutions will rise and Stader Lab’s solutions will be more important. The lap will purportedly help validators build automated yield optimization strategies that will make the staking process easier and maximize returns.
In return, the CEO of Stader Labs highlighted that the firm will charge a distribution fee from staking service providers and additional fees from stakers for providing high-yield strategies.
Currently, Stader is looking to onboard retail customers and plans to serve institutions in the future. It also intends to build API staking solutions for exchanges and fintech apps.