DASH, a payments-focused crypto project, has rolled out stakedDASH (stDASH), creating a bridge to Ethereum’s DeFi ecosystem. A press release was shared on March 10 noting that DASH Core Group and DASH NEXT collaborated with StakeHound, a DeFi gateway protocol, to achieve this feat. Reportedly, this development would also help improve DASH’s liquidity.
According to the news release, stDASH is an ERC-20 version of wrapped DASH. Through this token, DASH holders will be able to access DeFi protocols on the Ethereum chain and earn stable staking rewards. Once a user sends their DASH to StakeHound, the platform would store the funds in institutional-grade custody solutions, where they will be insured and audited in real-time on the blockchain.
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StakeHound would then generate and send the user a one-to-one representation ERC-20 representation (stDASH) of their DASH. The firm would then stake the DASH to earn staking rewards, which it then distributes to user wallets proportionally in the form of stakedDASH.
A gateway to multiple earning avenues
Apart from staking, stakedDASH can be used for lending and borrowing in a wide variety of DeFi applications. can also participate in yield farming to provide liquidity to pools. In exchange, the pool offers users liquidity pool tokens, which represent their share in the pool. By staking these liquidity pool tokens in Automated Market Makers (AMM), such as SushiSwap and UniSwap. In so doing, users will be able to earn staking rewards, trading fees, and the AMM’s native coin.
Commenting on DASH’s foray into DeFi, StakeHound’s founder, and CEO, Albert Castellana said,
Over the last 7 years, DASH has demonstrated to have one of the most solid communities and innovative governance models in crypto. We are very keen on working together to foster the utility of stakedDASH in DeFi as well as exploring the exciting capabilities that the upcoming DASH platform will be bringing with it.
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