Decentralized Protocol Alkimiya Raises $7.2 Million for Miners, Stakers
Alkimiya, a decentralized capital markets protocol, has raised $7.2 million in funding to help miners and stakers make more consistent returns. Castle Island Ventures and 1kx led the $7.2 million funding round, according to Alkimiya. The DeFi firm would not disclose at what valuation the company raised funds. Moreover, heavyweights such as Circle Ventures, Coinbase Ventures, and Dragonfly Capital Partners also participated in the round. Bitcoin mining is a great way to generate value from interacting with the network. However, the business has significant operational risks, said Leo Zhang, founder of Alkimiya. The same is even more true for staking. Currently, DeFi yields rely on the liquidity of specific cryptocurrencies. These, in turn, are very vulnerable to volatility. Alkimiya’s protocol is a decentralized way to hedge against the uncertainties in the crypto space, he explained. Alkimiya’s protocol will allow miners and staking validators to access hedging solutions. The hedging protocol, set to go live in the first quarter of 2023, allows miners to lock in an upfront, fixed return for their future production. As such, the protocol would help them manage the risks of a potential bear market. Moreover, it would hedge against wild cash flow fluctuations that come with the crypto space. In return, Alkimiya would get a portion of the mining and staking rewards. Stable returns could incentivize more firms to join the crypto mining industry and staking pools. Moreover, more liquidity could reduce volatility and help attract investors.
“Thrilled to share the news on our latest round. A big thank you to our investors 1kx, Castle Island Ventures, Dragonfly Capital Partners, and many others,” the company wrote on Twitter.
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Read more: https://dailycoin.com/alkimiya-raised-7-2-for-decentralized-hedging-protocol-for-miners-stakers/
Text source: DailyCoin.com
