Sirlibz
The expected launch of Ethereum 2.0 phase 0 has had investors and the Ethereum community talking about it, including the fact that people who decide to send tokens and stake them with the Ethereum Deposit contract address will not have access to their funds until phase 1 launch which could take years for that to happen. This challenge could be part of the reason why people are more hesitant about staking right now and thereby making the process slow. To help curb this Challenge, some companies are trying to provide solutions that will help prospective stakers in Ethereum 2.0 phase O to be able to have access to their staked capital.
Darma capital is one of the several companies planning to offer intermediated staking that would let stakers have access to their capital through it’s LiquidStake initiative. This solution will allow both retail and institutional stakers to delegate their capital and to still maintain the control via using their funds as collateral to receive USD coin (USDC) loans.
“With LiquidStake you can have your stake and eat it too,” added Andrew Keys, co-founder of Darma Capital. “And in that regard, [stakers] probably are looking for fiat to maintain their life expenses. So that’s the problem we’re trying to solve.”
LiquidStake’s solution is exceptional to other staking derivative proposals since they do not plan on creating new tokens to represent the bonded Ether (ETH).
“The time window for Phase 1.5 — we can all flip a coin on this — is 18 months, 36 months, somewhere in that realm. So it’s a relatively short time frame with an end date. And so when you start to tokenize assets where you only have a short [life span], the difficulty there becomes what kind of liquidity would be there for that type of token.”
To achieve its aim, LiquidStake is partnering with other staking providers such as Bison Trails, ConsenSys CodeFi and Figment to handle the actual validation process. Open law and Lukka will help with the legal and Tax management proceedings. The company also works through the familiar mechanism of margin calls and liquidation.
Prospective stakers would have to stake through LiquidStake to become eligible for all those benefits attached to the system which includes the lending service.
