Cryptocurrency staking protocol ClayStack completes $5.2 million seed round financing

It was reported on July 13 that ClayStack, a cryptocurrency liquidity staking protocol, raised $5.2 million in a round of seed financing.

According to The Block reported on July 13, the cryptocurrency liquidity staking protocol ClayStack raised $5.2 million in a round of seed financing.

Coinworld-cryptocurrency staking protocol ClayStack completes $5.2 million seed round financing

Mohak Agarwal, the founder and CEO of ClayStack, told The Block that this round of financing was obtained through a Simple Agreement for Future Tokens (SAFT) sale. The project is led by CoinFund and ParaFi Capital, with Coinbase Ventures, Solana Foundation, Animoca Brands and other institutions participated.

Angel investors including Meltem Demirors of CoinShares, Larry Cermak of The Block, Robert Leshner of Compound and Stani Kulechov of Aave also supported this round of financing.

Agarwal told the Block that with the new funding, ClayStack hopes to expand the size of the team and launch the agreement by September. Agarwal said that ClayStack currently has 12 employees, and it plans to increase it to 25 by hiring designers, developers, researchers and technical writers.

Liquid Staking

Once the agreement is launched, ClayStack will allow users to hold cryptocurrencies without a lock-up period or loss of liquidity. Agarwal said that ClayStack will achieve this goal by issuing a liquid synthetic or derivative token.

For example, a user deposits 1,000 Polygon (MATIC) tokens. In return, they will receive 1,000 csMATIC tokens. ClayStack will hold the original MATIC tokens and send csMATIC tokens to users as rewards.

Agarwal said that csMATIC tokens can be exchanged back to MATIC to cancel staking at any time, and there is no lock-up period in the whole process. He added that due to its fungibility, csMATIC tokens can also be used in the Decentralized Finance (DeFi) ecosystem to obtain additional benefits in the future.

ClayStack can be compared with the Lido protocol. The Lido protocol currently supports Ethereum 2.0 (ETH2) and Terra (LUNA) staking, holding nearly $2 billion in staking assets.

Agarwal told The Block that ClayStack will support MATIC, ETH2 and The Graph (GRT) tokens at launch. He said that it plans to support more tokens in the future, including Near (Near) and Solana (SOL). He also added that the plan will also become a cross-chain protocol (not just multi-chain) and pass Interoperability to achieve this.

When talking about how to ensure the liquidity of the ClayStack protocol, Agarwal said that the project will provide early liquidity providers with incentives for liquidity mining in the form of CLAY tokens. He said that the support of investors and their communities will also play a big role in this regard. Agarwal said that taking into account market conditions, the CLAY token will be launched after the agreement takes effect, and their goal is to launch before the end of this year.

The seed round of financing brings ClayStack’s current total financing to 5.3 million US dollars. The project raised $100,000 in a round of pre-financing during the seed period last year. Agarwal told the Block that ClayStack may raise more funds before the token issuance.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/cryptocurrency-staking-protocol-claystack-completes-5-2-million-seed-round-financing/
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