Stroom Network. Recently, the project announced that it has successfully raised $3.5M in a funding round led by Greenfield Capital. The funds will be used for team expansion and to launch “liquid staking” on the Bitcoin Lightning Network. In addition, Stroom Network plans to release a corresponding Ethereum-based wrapped token, lnBTC.

Exploring the Liquid Staking Protocol:
Staking is a popular concept in the cryptocurrency world, allowing users to participate in network consensus protocols and earn rewards for locking up their tokens. However, traditional staking models lack flexibility, as staked tokens are illiquid and cannot be used for other purposes. Stroom Network aims to address this limitation by introducing the concept of “liquid staking” on the Lightning Network.

The Lightning Network is a layer-2 scaling solution for Bitcoin that enables faster and cheaper transactions by creating off-chain payment channels. By launching liquid staking on the Lightning Network, Stroom Network aims to make staked Bitcoin more accessible and usable, allowing users to leverage their staked tokens for various DeFi applications and investments.

The lnBTC Token:
To facilitate the use of staked Bitcoin on the Lightning Network, Stroom Network plans to release lnBTC, an Ethereum-based wrapped token. Wrapped tokens are digital assets pegged to the value of another underlying asset, in this case, Bitcoin. By wrapping Bitcoin in an Ethereum-based token, users will be able to seamlessly transfer and utilize their staked Bitcoin in Ethereum-based applications, including DeFi protocols.

Implications for the Crypto Market:
Stroom Network’s liquid staking protocol has the potential to revolutionize the staking landscape by unlocking the liquidity of staked assets. This development could attract a wider range of participants to the staking ecosystem, as users would no longer be tied up in illiquid assets. Additionally, the integration of Bitcoin staking into the Ethereum ecosystem through lnBTC could lead to increased interoperability between the two blockchain networks.

Investment Round and Backers:
The recent funding round, led by Greenfield Capital, saw Stroom Network raise an impressive $3.5M. Greenfield Capital is known for its investments in various blockchain and cryptocurrency projects. It was joined by other notable backers, including Lemniscap, Ankr, and Cogitent Ventures. These investors recognize the potential of Stroom Network’s liquid staking protocol and its ability to revolutionize the way staking is approached in the crypto market.

With its successful fundraising round, Stroom Network is well-positioned to expand its team and launch its innovative liquid staking protocol on the Bitcoin Lightning Network. The project’s aim to increase the liquidity and usability of staked assets through the introduction of lnBTC holds significant promise for the DeFi space. As the cryptocurrency market continues to evolve, it is exciting to see projects like Stroom Network pushing the boundaries and driving innovation in the industry.