An announcement was recently made by the team behind cryptocurrency Dash about its tokens. The company said that the tokens will now be entered into the popular Decentralized Finance (DeFi) ecosystem on Ethereum. A DeFi development firm by the name of StakeHouse will now be leading the initiative and they will also create an Ethereum-wrapped token called StakedDASH that will be easily accessible by its users. According to the Dash team, the wrapped token will be launched in the last half of 2020. An important thing to note is that Dash is certainly not the first, and most probably not the last, cryptocurrency that has created a tokenized version of some other cryptocurrency.
The most notable example in this regard is wBTC, or wrapped Bitcoin. Just like it is possible to use this wBTC for DeFi apps, people will be able to use StakedDASH tokens for making liquidity contributions in DeFi applications like Uniswap. In addition, this will also be helpful for the token holders in the community because it will enable them to earn rather than just attract yields for their token holdings. Moreover, this development also brings about another opportunity, as it will help users in gaining extra rewards.
The first way to go about is quite straightforward; all users have to do is lock their tokens in Masternodes and then get annual rewards for the tokens they have staked. Another way for users to gain rewards is by making use of the StakedDASH token generation, which they will be able to use for yield farming in DeFi applications. However, it should be noted that if a user wants to generate StakedDash, then they don’t have to run a Masternode. Instead, they will be able to sign up and can send their own holdings to StakeHound and the company will stake the tokens on behalf of the users and send them the rewards.
The chief executive of Dash Core Group, Ryan Taylor also made a statement about this matter. He elaborated that this new partnership would help the company make a move into the rapidly growing DeFi space. According to the CEO, this would help them in finding new opportunities and use cases that will help the users of Dash and even those who use ERC-20 blockchain tokens. He stated that a new door would be opened for both sides and users from each end of the spectrum would be able to explore a completely new world.
Obviously, the movie would be especially beneficial for Dash users because they will be able to gain more returns, as they will also be able to stake Dash in this way. As expected, it didn’t take long for DASH to experience a massive hike in price within 12 hours after the announcement was made. At the time of writing, the price of DASH was about $73.50, which marked a 15% increase in its price in the first 12 hours and after undergoing a number of corrections. At the rate with which DeFi is growing, this is certainly going to result in more rewards for the cryptocurrency.