According to a March 18, 2021 announcement, StakeHound, which is an institutional-grade staking provider, plans to integrate the Radix protocol. The announcement was made by Radix, which is a layer-one protocol that was purpose-built for the DeFi sector. The integration will make StakeHound amongst the first projects integrated into the protocol.
The integration comes amidst plans by the Radix team to launch Betanet in April 2021. StakeHound will begin running validator nodes on Radix Betanet and mainnnet. At the same time, they will offer seamless access to Ethereum DeFi for participants in the XRD ecosystem.
What Leaders Had To Say
According to the CEO of Radix, StakeHound is a revolutionary DeFi product where users no longer have to choose between securing layer 1 protocols and being affiliated with the DeFi app ecosystem. Piers Rydird, the Radix CEO added that
“Their institutional-grade custody and staking, along with their liquid staked tokens will increase liquidity and security for the Radix network as well as the liquidity of the other communities we are working closely within the Ethereum DeFi ecosystem.”
Commenting on the issue, StakeHound CEO Albert Castellana, said that the integration in the Radix ecosystem would multiply the reward opportunities for the Radix community. At the same time, it would allow them to take part in securing the network. Castellana noted that
“Radix holders will qualify for part of the 300m annual XRD staking rewards while getting liquid access to the best DeFi products on Ethereum such as earning UniSwap LP fees”.
The Goal Of Radix
Radix DeFi DLT will offer a viable alternative to the global network of the legacy financial system. The value of the Radix DeFi DLT lies in the capacity to support a large number of interconnected DeFi apps simultaneously. It can also run each of them at high throughput without making any compromises to decentralization.
To achieve this goal, Radix operates as a first layer protocol that is designed with large-scale DeFi apps in mind. The team behind Radix recognizes that today’s DeFi apps are built on protocols that are unfit for large-scale adoption. They often face congestion, hacks, and developer frustrations. The Radix solution provides a scalable, secure, and compostable platform that simplifies the process of creating and launching scalable DeFi apps.
The launch of the Radix betanet will be the final large-scale stress test. It will mark the completion of major development milestones for Radix ahead of the first mainnet launch later in 2021. In the betanet launch, StakeHound is going to be amongst the first validator nodes to launch on the network. Once the Radix mainnet is launched, it (StakeHound) will be amongst the first to be deployed.
Radix Drivers Of DeFi Growth
Radix believes the three drivers of DeFi growth are access, liquidity, and choice.
Access – Even though DeFi has taken off over the last few years, it is still expensive to transact in the current environment. Radix believes on/off ramping can be monetized to conquer these issues seamlessly.
Liquidity – Despite liquidity being one of the most important facets of crypto & the economy, the environment is still fragmented across various platforms. The Radix platform is creating functionalities that projects, developers, and communities can leverage for easier access to liquidity pools. This is facilitated by the call of an API.
Choice – Increasing volume and liquidity in the DeFi lifecycle results in more products and assets for users around the globe.
StakeHound’s Value Proposition
StakeHound provides liquid staking solutions as a way to capture some of the locked value in the staking world. It then seamlessly bridges this value into the growing DeFi sector. The company helps bridge the gap between the PoS staking and participation in the DeFi sector for leading protocols such as NEM, DASH, Firo, and many others.
StakeHound will create ERC20 wrapped XRD tokens, which will be called stXRD. The wrapped XRD will allow holders to access stable staking rewards payouts. Additionally, the wrapped tokens will offer holders:
- Access to the Ethereum DeFi ecosystem
- Liquidity to AMM pools
- Yield-farming
- Collateral for borrowing and lending
According to estimates by Staking Rewards, the Proof of Stake protocols have a total market cap of $456 billion. The site also estimates that around $113 billion is locked in staking.
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