Stroom Network Raises $3.5M in Seed Funding for Liquid Staking Project
Stroom Network, a liquid staking project for Bitcoin’s Lightning Network, has successfully raised $3.5 million in a seed funding round. Here are the key points of the news:
– The funding round was led by crypto investment firm Greenfield, with support from Mission Street and other venture capital firms and angel investors.
– Stroom Network uses the mechanics of liquid staking to allow users to trustlessly utilize their Bitcoin capital on both the Lightning Network and Ethereum.
– The raised funds will be used to expand the team and release the Liquid Staking Token on the Ethereum mainnet.
– The protocol generates routing fees through BTC deposits within the Lightning Network and also creates its own equivalent of wrapped BTC called lnBTC.
– Stroom aims to solve the liquidity issues of the Lightning Network and increase adoption by simplifying the process of earning Lightning routing fees.
– The project plans to encourage Bitcoin users familiar with Ethereum to provide liquidity to the Lightning Network while maintaining their yield on the Ethereum platform.
– Stroom will utilize a multi-party signature computation mechanism to govern funds allocated to payment channels as liquidity.
Hot Take: Stroom Network’s Liquid Staking Project Holds Promise for Lightning Network’s Liquidity Issues
Stroom Network’s successful seed funding round and its liquid staking project offer potential solutions to the liquidity challenges faced by the Lightning Network. By allowing users to simultaneously utilize their Bitcoin capital on both the Lightning Network and Ethereum, Stroom aims to increase adoption and yield opportunities. The project’s approach of streamlining the technical intricacies and introducing decentralized finance mechanics could attract Bitcoin users familiar with Ethereum. With its multi-party signature computation mechanism, Stroom also proposes a DAO-like structure to govern funds allocated to payment channels. Overall, Stroom Network’s efforts have the potential to significantly contribute to the scalability and growth of the Lightning Network.
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