- A liquid staking platform, Stroom has raised $3.5 million in an overpopulated seed funding round.
- The funds raised will be used for team expansion and launching the Bitcoin liquid staking on Lightning Network.
Stroom Secures Funding to Launch Liquid Staking on Lightning Network
Stroom Network has raised $3.5 million in oversubscribed funding for liquid staking on the Bitcoin Lightning Network.
Greenfield—a crypto investment firm—, together with several venture capital firms, and Angel investors, including Mission Street Lemniscap, No Limit Holdings, and Cogitent Ventures, led the seed funding round.
The funds raised will be used for team expansion as they are only a team of eight currently.
Stroom Reduces Staking Limitations
Stroom, a financial protocol on Bitcoin Lightning Network, aims to accelerate the adoption of Lightning Network by adding liquidity.
Through its liquid staking protocol, users can earn staking rewards without locking their assets and maintaining their node infrastructure. Users can trade and deposit staking tokens in exchange for tradable liquid tokens.
Before Stroom was launched, tokens staked in a liquidity pool were locked and not accessible for a while.
But with Stroom’s liquid staking protocol, users can access their staked tokens and utilize them for other decentralized finance features while earning rewards on the staked tokens.
Stroom aims to provide a bridge between the Lightning Network and the DeFi ecosystem across all EVM chains, especially Ethereum. Stroom is responsible for reducing the technical complications of depositing Bitcoin into the Lightning Network. Through its liquid staking protocol, users can yield-farm in EVM-compatible DeFi ecosystems.
Stroom plans to attract Bitcoin DeFi users to utilize Lightning Network by simplifying the process. With Stroom, Bitcoin DeFi users can use their Bitcoin capital in Lightning Network and EVM-compatible blockchains simultaneously.
“Despite having its limitations, Lightning Network is still the most promising payment technology out there. It doesn’t have any competitors within the crypto space and could effectively compete with traditional payment rails,” Slava
Zhygulin, the CTO of Stroom, told Decrypt.
Lightning Network: The Next Generation Payment Rail Technology
Lightning Network, the next-generation payment rail technology, is equipped with a high scalability level, designed to process payment instantly and reduce fees. However, it has yet to attain mass adoption due to liquidity problems, a flaw that affects the success rate of payments and the robustness of the network.
According to the CTO of Stroom, the liquid staking platform is the key to Lightning Network’s issues.
“Our goal is to provide anyone with an easy way to earn Lightning routing fees and contribute to Bitcoin’s scalability,” Zhygulin, Stroom’s CTO, said.
“We are able to do so by alleviating the technical complexities associated with managing a Lightning node and by introducing DeFi mechanics. We think these mechanics can persuade Ethereum-savvy Bitcoin users to deploy liquidity to Lightning while retaining their yield in Ethereum,” he added.
Greenfield Principal, Jendrik Poloczek, stated the potential of the Lightning Network as the next colossal payment system in the crypto space.
According to him, Stroom utilizes dormant Bitcoin liquidity from staked pools to be utilized by DeFi users. This action boosts the Lightning Network and rewards the liquidity providers.
