Terra Staking Platform Stader Labs Completes $12.5M Raise

Key Takeaways

  • Stader Labs has raised $12.5 million in a funding round led by Three Arrows Capital.
  • Stader allows users on Terra to stake LUNA and earn rewards while keeping their tokens liquid.
  • Solana is the next chain Stader plans to deploy its contracts on, with Ethereum-compatible chains such as Fantom coming later in the year.

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Stader Labs has raised $12.5 million in a strategic funding round led by Three Arrows Capital. The latest raise values the company at $450 million. 

Stader Labs Secures $12.5M

A new staking platform is making waves on Terra.

The Bangalore-based staking infrastructure platform Stader Labs announced the completion of its latest strategic funding round Thursday, raising $12.5 million from several venture capital firms and angel investors. 

Su Zhu and Kyle Davies’ Three Arrows Capital led the raise, while Blockchain.com, GoldenTree Asset Management, and Matt Cantier of Anchor Protocol also participated. Stader Labs had previously raised $4 million in October from Pantera Capital, Coinbase Ventures, and Jump Capital, among others. 

Stader Labs is a staking infrastructure platform that helps both retail and institutional investors access staking solutions. In November, Stader launched on Terra and has since amassed over $222 million worth of LUNA tokens in its liquid staking contracts and liquidity pools. 

DeFi users can deposit their LUNA tokens to Stader’s staking pools to earn auto-compounding rewards while also receiving airdrops from other Terra DeFi protocols such as Anchor and Mirror. Stader also offers liquid staking pools where users can exchange LUNA for LUNAX, which can be used in DeFi strategies to earn yield. 

A representative from Stader Labs told Crypto Briefing about the impact of its liquid staking contracts, stating:

“Liquid staking’s biggest impact on Terra is that it further enhances decentralization by delegating to several high-performing small validators. By expanding the delegated amounts to smaller validators, the entire ecosystem is less centralized and thus more secure against centralization risks.”

While Stader currently only offers staking services on Terra, the company plans to use the money from its latest raise to expand to other networks. Solana is set to be the next chain Stader launches on, with support for Ethereum-compatible chains such as Fantom and Polygon coming in the second quarter of 2022.

Over the past several months, the Terra ecosystem has experienced rapid growth. Astroport, a next-generation decentralized exchange, launched on Terra in December, attracting more liquidity to the network. Terra has since become the second-biggest DeFi network behind Ethereum, currently holding over $18.7 billion in total value locked. 

With the launch of more advanced staking infrastructure from Stader Labs, Terra looks set to continue growing in 2022. 

Disclosure: At the time of writing this feature, the author owned LUNA, ETH, SOL, FTM, and several other cryptocurrencies. 

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Stader Labs completes $4M funding raise to expand crypto staking

Stader Labs, a cryptocurrency staking management platform, has today announced a $4 million financing round to accelerate development across multiple blockchains including Ethereum, Near and Polkadot, as well as broadening its marketing campaigns.

The funding raise was conducted by Pantera Capital, with participation from a prominent number of venture capital funds, blockchain foundations and angel investors, including Coinbase Ventures, True Ventures, Hypershare, TerraForm Labs and the Solana Foundation.

Stader Labs aggregates decentralized finance (DeFi) protocols and applications into a simplified staking solution for delegators in a bid to maximize their returns. The current offering includes staking, liquid staking, derivatives, gaming, as well as high-yield strategies.

Co-founder and CEO of Stader Labs Amitej Gajjala commented on the firm’s ambitions:

“We hope to empower cryptoasset staking throughout the financial sector, making it easy and intuitive for investors to stake assets and generate returns.”

A report published by JP Morgan in July estimated that Ethereum’s transition to a proof-of-stake consensus mechanism will increase the staking payout from $9 billion to $20 billion.

In early August, prior to Ethereum’s EIP-1559 upgrade, Pantera Capital CEO Dan Morehead predicted that Ethereum will surpass Bitcoin as the leading crypto asset, citing it’s capabilities of mining energy consumption and its vast impact on DeFi as reasons for the growth.

Related: Staking will eat proof-of-work for breakfast — Here’s why

Commenting on the Stader funding raise, Pantera Capital partner Paul Veradittakit said:

“We will provide aggregation and decentralization to staking assets and derivatives across both protocols and validators. We believe that the staking user experience can be improved for both retail and institutions, and Stader Labs is poised to play a major role in the mass adoption of staking solutions.”