Stroom Network Nets $3.5M to Onboard Liquid Staking to Bitcoin Lightning
Stroom Network has, in a recent statement, confirmed that by raising $3.5 million, it intends to fund onboarding liquid staking to the Bitcoin Lightning network. The developer’s team in Stroom Network considers accomplishing liquid staking would resolve the liquidity challenges experienced by Lightning Network.
Stroom Network Experience Oversubscribed Seed Funding
Stroom Network announced the conclusion of the seed funding round steered by Berlin-headquartered crypto investment firm Greenfield. The liquid staking project for the Lightning Network confirmed raising $3.5 million in a round portrayed as oversubscribed.
The funding round featured Mission Street, identified as Ankr’s venture arm, to offer strategic support. A quick review of participants indicated that the seed round attracted Lemniscap, Cogitent Ventures, and No Limit Holdings. The participants list featured several venture capital firms alongside angel investors.
Stroom Network targets allowing users to utilize their Bitcoin (BTC) capital holding simultaneously on Ethereum and Lightning Network (LN). The project applies the liquid staking mechanics considered as featuring a tokens’ staking process to a target network and, in turn, receiving a representative token of the staked position.
Stroom Targets Liquid Staking on Ethereum
Stroom Network features eight members who have disclosed plans to raise funds to expand the team. Also, they intend to release the liquid staking token mainly on the Ethereum mainnet.
The statement revealed that the Stroom protocol targets improved effectiveness in assigning Bitcoin deposits to the Lightning Network. Doing so would facilitate the generation of routing fees. Besides, the protocol successfully self-generates an equivalent of the wrapped Bitcoin (wBTC) on an equal basis.
The setup allows the users to explore various yield opportunities available on Ethereum at an equivalent when utilizing wBTC. The chief technical executive at Stroom, Slava Zhygulin, profiled Lightning Network as an effective payment technology, though harboring a few limitations.
Stroom Network Poised to Resolve Hindrance to Lightning Network
Zhygulin ruled out the existence of payment technology that would rival Bitcoin Lightning Network across the crypto landscape, effectively triumphing over traditional payment rails. The executive decried the insufficiency of liquidity as the primary challenge with Lightning Network.
Zhygulin indicated sufficient liquidity within the payment channels is necessary to execute transactions. The executive admitted that limited liquidity translates to delayed and failed transactions. As such, he considers that Stroom Network harbors the solution to the long-standing hindrance to the Bitcoin Lightning Network.
Zhygulin portrayed optimism in Stroom Network’s capability to run a well-managed liquidity allocation to fuel adoption, thereby realizing higher yields. The executive disclosed that Stroom Network projected the potential to optimize yields to a sustainable 6%.
Zhygulin added that Stroom’s team targets simplifying the mechanism to earn routing fees while guaranteeing Bitcoin’s scalability across the Lighting Network. Its accomplishment mandates streamlining the existing technical hindrances often surfacing when managing the Lightning node and launching mechanics derived from decentralized finance (DeFi).
Zhygulin emphasizes that mechanics harbor potential that would encourage Bitcoin users fond of Ethereum to guarantee liquidity within the Lightning Network. Additionally, the mechanics have the potential to sustain yield within the Ethereum platform.
The statement by Zhygulin illustrated that Stroom Network was gradually assuming the DAO-like structure. It utilizes the multi-party signature mechanism in governing funds allocation to the payment channels to guarantee liquidity.
Zhygulin considered the structure as capable of creating and adjusting the user incentives. Additionally, it has the potential to facilitate the protocol’s upgrade while establishing a treasury. Lastly, it promises to boost participation within the decision-making process linked to allocating the raised funds.
Lightning Network Attracting Interest From Researchers
The popularity of Lightning Network is evident with scholars inspired to optimize its capability. A team drawn from the Florida International University explored the viability of Lightning Network to overcome non-access to the internet.
The researchers observed that offline payments are possible by leveraging the community of wireless mesh networks. Given the faster transactions and lower cost, its accomplishment would make Lightning Network the future of digital currency.
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