Stader Labs, a crypto staking project based in India, has raised $4 million in a seed funding round.
Pantera Capital led the round, which included Coinbase Ventures, True Ventures, Jump Capital, Huobi Ventures, TerraForm Labs, Solana Foundation, Near Foundation, and others.
Anchorage CEO Diogo Monica, Coinbase head of crypto Nemil Dalal, Staked CEO Tim Ogilvie, Polygon CEO Jaynti Kanani, Polygon COO Sandeep Nailwal, CoinDCX CEO Sumit Gupta, and Biconomy CEO Ahmed Al Balaghi were among the angel investors who contributed to the round.
Stader Labs raised the funds through a Simple Agreement for Future Tokens (SAFT) sale, according to co-founder and CEO Amitej Gajjala. According to him, the new funding will allow the company to grow its team, add support for more blockchains, and promote its platform.
In a beta version of its platform, Stader currently supports Terra blockchain’s LUNA token for staking. It intends to add support for native tokens of Solana (SOL), Ethereum (ETH), Polkadot (DOT), Polygon (MATIC), and Near (NEAR) in the coming months (NEAR).
Stader claims to make crypto staking more convenient and profitable for users. Gajjala described today’s staking as “manual and tedious,” implying that participants must research validators, claim rewards, and find ways to deploy those rewards. “Stader will curate the best staking service providers while also developing automated yield optimization strategies to maximize returns,” he explained.
Gajjala declined to name the staking service providers with whom Stader will collaborate, saying that the choice will be based on a provider’s performance on a specific blockchain. Stader’s business model will include a distribution fee from staking service providers and additional fees from stakers for providing high-yield strategies, according to Gajjala.
Stader will function more like a staking aggregator, bringing staking solutions such as conventional staking, liquid staking, and derivatives to hedge the price risk of staked assets together in one place. “The staking aggregator model represents our vision of the future of staking UX [user experience] for retail and institutions,” Franklin Bi, director of portfolio development at Pantera Capital, told ULTCOIN365.
Stader is currently focused on onboarding retail customers, but plans to expand into the institutional market in the future. It also plans to develop API staking solutions for exchanges and fintech applications.
Stader currently employs 12 people, and Gajjala intends to hire 15-20 more in the next six months to meet the firm’s expansion goals.