Figment is proud to announce that we have partnered with LiquidStake (for individuals) and DARMA Capital (for institutions) to provide a liquidity solution to Eth2 stakers. Now, ETH holders can stake their ETH with Figment on Eth2 and receive a USDC loan using their locked ETH as collateral.
The launch of Eth2 will allow ETH holders to earn newly minted ETH for the first time by staking their ETH instead of having to mine it. This paradigm shift will drastically change how ETH is allocated and who is able to benefit from participating in consensus.
Eth2 will be the largest upgrade to the Ethereum blockchain to date. Eth2 is designed to exponentially increase the speed and security of Ethereum while lowering energy consumption. Early Eth2 stakers will enjoy high reward rates for their participation, but there are costs associated with that reward. The bridge between Ethereum and Eth2 is a one way street, and ETH will be locked until Phase 2, which won’t happen for an estimated 6 to 18 months.
The Eth2 genesis block will not go live until one week after 524,288 ETH (or ~$312M at current prices) have been deposited into the genesis contract. This leads to a liquidity issue not just for individuals, but for the Ethereum ecosystem as a whole. Thankfully, LiquidStake and DARMA Capital are tackling the problem in partnership with select staking services like Figment.
Figment + LiquidStake & DARMA Capital
LiquidStake & DARMA Capital enables you to:
- Stake your ETH with Figment’s enterprise-grade staking services.
- Take out a loan in USDC using your staked ETH as collateral.
- Trade, hold, and participate in other Ethereum network activities via your USDC loan.
- Stake your ETH with no minimum balance (LiquidStake).
- Stay compliant by working with a CFTC-registered Commodity Pool Operator and Trading Advisor (DARMA Capital)
“LiquidStake & DARMA Capital are pleased to partner with Figment, an incredibly high quality and dependable solution for staking and more that is relied upon throughout the industry, to help their users get access to liquidity during the transition to Eth2. We look forward to working together to support the Ethereum ecosystem as it takes this important next step in its growth.”James Slazas, Founder & CEO of LiquidStake & DARMA Capital
“Figment is excited to partner with LiquidStake & DARMA Capital to offer ETH liquidity to our clients. With their unparalleled Ethereum expertise, the LiquidStake & DARMA Capital team are uniquely qualified to offer this much-needed solution that we anticipate will be extremely attractive to our ETH clients.”Lorien Gabel, Founder and CEO of Figment
As an individual investor, you must register and deposit ETH directly with LiquidStake in order to receive liquidity benefits while staking ETH. You can choose to stake with Figment once you have completed the registration process and have successfully deposited your ETH.
Figment: Blockchain Simplified
Figment is Canada’s largest blockchain infrastructure and software provider. Our mission is to make it simple for token holders and developers to use, build and govern blockchains. We do this by providing a comprehensive set of tools & services including our enterprise-grade node and staking infrastructure, the Hubble Web 3 explorer, DataHub developer APIs, and our Learn Web 3 knowledge base. With Figment you can discover and build the next killer blockchain based decentralized application.
LiquidStake is a lending facility for individuals staking ETH. LiquidStake is not registered with the CFTC nor a member of the NFA. Its lending operations are covered under Uniform Commercial Code-1 and a money servicing umbrella.
Digital Asset Risk Management Advisors (DARMA Capital) is a CFTC registered Commodity Pool Operator and Commodity Trading Advisor focused on the blockchain market. Given our focus on a unique asset class, our approach has been to follow the time-tested structure of traditional asset funds by incorporating a master-feeder structure with service partners including Duff & Phelps, RSM, Theorem Fund Services, and Walkers Global.