October 20, 2020 2:05 am

DASH Partners with StakeHound Enabling Ethereum DeFi Users to Earn Rewards with StakedDASH

StakeHound partners with DASH NEXT and Dash Core Group to offer DASH users access to DeFi applications while earning staking rewards. With stakedDASH hitting the market later this year StakeHound will connect two ecosystems and open a gateway for liquidity flow.

Today we are happy to announce a partnership between DASH and StakeHound that aims to create and promote the stakedDASH token. StakedDASH will become an essential bridge between DASH and Ethereum DeFi ecosystems. Newly launched stakedDASH will allow DASH holders to generate additional yield through major DeFi applications while at the same time continue receiving stable staking rewards.

“With DeFi, different Blockchains are finally coming together. I am very excited about this partnership as it provides DASH users the benefits of DeFi applications such as lending or borrowing, and Ethereum users with an easy way to use DASH’s established global payment ecosystem.”

Felix Mago, Co-Founder of DASH NEXT

What’s DeFi all about?
Over the last few months there has been a great shift in the industry with the creation of multiple financial products and applications of a decentralized nature on top of blockchain ledgers such as Ethereum referred to Decentralized Finance or DeFi. There was a dramatic increase in the value locked in the DeFi applications from $500m to $11bn in the past 12 months. And this impressive growth clearly demonstrates how important all these products are to the cryptocurrency users and holders.

“This is certainly a unique and exciting partnership for the Dash Network. With Dash extending into DeFi as a result of this partnership, new doors and use cases will be available to Dash users as well as ERC-20 blockchain users. This functionality provides the ability for one to explore the world of DeFi or from the other side, the world of Dash while continuing to see returns through staked Dash. I am excited to see how this partnership evolves and the great work that will result.”

Ryan Taylor, CEO of Dash Core Group

Some of the main applications for DeFi are based upon lending and liquidity mining. Now anyone has the ability to provide liquidity to the markets and profit from it. However, this raises a fundamental question to many crypto users: should I participate in DeFi or should I participate in staking?
StakeHound brings staking and DeFi together
StakeHound eliminates the competition between staking and DeFi by enabling users to earn rewards both from supporting their beloved networks and participating in the DeFi. This becomes possible through the introduction of the ERC-20 wrapped version of the original token. In two words StakeHound stakes the tokens and runs masternodes for the users providing them with a one-on-one representation of their original asset known as stakedToken.
StakeHound Dash How It Works.jpg
Users send their original DASH tokens to StakeHound which are received by our institutional-grade custodian partners. StakeHound then instantly generates and sends the user a one-to-one ERC-20 representation of their original tokens – stakedDASH. StakeHound stakes the DASH token it receives, and distributes staking rewards directly to user wallets as additional stakedDASH. The new stakedDASH can be immediately used in popular DeFi applications.
StakeHound users can swap their stakedDASH back for their original DASH tokens at any time.
Why stakedDASH?
StakedDASH being a one-on-one representation of the original DASH token provides it holders with extended utility.
Albert Castellana StakeHound Dash Quote.jpg
  1. Holders of the stakedDASH are entitled to receive the same staking rewards as if they had held the original token. With a crucial difference that with StakeHound they don’t need to necessarily stake 1000 DASH for the entire masternode but can have a proportional part of it depending on their investment. The minimum amount of DASH required to stake is 1 DASH.
  2. StakedDASH can be freely traded on the open market thus creating opportunities for arbitrage.
  3. Holders can make additional income by providing liquidity on decentralized exchanges also known as yield farming.
  4. StakedDASH can be used in multiple DeFi applications for lending and borrowing thus creating various opportunities for it’s holders who can now borrow against their staked tokens for instance.
StakeHound stakes the tokens it receives, and distributes staking rewards directly to users as additional stake-backed tokens. Users will be able to take their stake-backed tokens and use them in all popular DeFi applications, including Uniswap, Aave, Curve, Synthetix, and more. StakeHound users can swap their representative tokens back for their original tokens at any time.
Until now, cryptocurrency users had to choose between earning staking rewards by staking their tokens, or retaining token liquidity by not staking, allowing them to participate in things like DeFi and token trading. StakeHound solves this by creating stake-backed, instantly transferable, and DeFi-ready tokens.
StakeHound’s stake-backed tokens are issuable on both the Ethereum and Radix public ledger, allowing users to access and move between both DeFi communities seamlessly. StakeHound token users do not need to choose between accessing Ethereum or Radix with their tokens as StakeHound is cross-ledger by default. Albert Castellana, Founder and CEO of StakeHound has stated his intention, and commitment to explore DeFi capabilities to build and integrate DeFi on Dash Platform after the upcoming mainnet launch.
StakedDASH will be available on StakeHound to DASH holders later this year.
What’s next?
Over the next few weeks both teams will be doing a lot of exciting things together!
On Thursday 29th October, 2020 at 3pm CEST / 9am EST there will be a StakeHound AMA session streamed live on StakeHound’s Facebook page with Felix Mago, co-founder of DASH NEXT and moderated by Albert Castellana, CEO and founder of StakeHound. If you have a question for Felix regarding the partnership, stakedDASH or future of DeFi you can submit them in the StakeHound Telegram Group any time before the session actually starts using the #AMADASH hashtag.

Author: Dash Newsroom
Original link: https://newsroom.dash.org/112220-dash-partners-with-stakehound-enabling-ethereum-defi-users-to-earn-rewards-with-stakeddash

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