Dash users have been waiting for an opportunity to join the DeFi sector for months now.
The move is finally made possible thanks to StakeHound’s Ethereum DeFi bridge.
The bridge will allow users to mint wrapped stDASH and earn DeFi rewards.
Privacy coin DASH is finally able to allow its token holders to enter Ethereum’s DeFi sector, thanks to a bridge provided by StakeHound protocol.
Payments-oriented privacy coin, Dash (DASH) has finally announced the release of its Ethereum DeFi bridge. The project has been testing it for months now, while the coin’s community patiently waited for developers to release the new tech. Then, the project finally issued an announcement yesterday, March 10th, revealing that the way to decentralized finance is finally about to become possible.
Dash Finally Gains Entry to the DeFi Sector
Dash’s entry into the DeFi sector would not be possible without a partnership with StakeHound, a DeFi gateway protocol that will allow Dash holders to interact with Ethereum-based DeFi projects.
Now, anyone holding Dash will be able to use their coins for various DeFi activities, such as staking, yield farming, lending, and arbitrage opportunities that Ethereum’s DeFi sector offers.
Furthermore, anyone holding the ERC-20 version of DASH, the so-called wrapped stDASH, will also be able to participate in providing liquidity on AMM platforms, such as the world’s largest DEX, Uniswap. This is also a good way to earn in the DeFi sector, as it grants users a portion of the transaction fees as rewards for their contributions to the system.
New Ways to Earn Rewards
As mentioned, DASH’s entry into the DeFi sector is in no small amount thanks to StakeHound. The project will provide wrapped stDASH tokens in order to facilitate the bridging process with Ethereum’s blockchain. Like other wrapped tokens, wrapped stDASH will be pegged to DASH, and will share its price, so that DASH holders will not lose the value of their balance.
The wrapped version of DASH will also be backed by original DASH, which will, in turn, be held in secure custody by StakeHound itself. Not only that, but StakeHound revealed that it will stake these original DASH deposits while they are in lockup, and distribute staking rewards in stDASH. In other words, users will not only be able to profit from staking, lending, yield farming, and other DeFi activities on Ethereum’s network, but will also receive rewards simply for owning stDash for a certain period of time.
DASH is also not the only project to team up with StakeHound in order to use its DeFi bridge. Others, like Firo (FIRO) and Horizen (ZEN) have been using this technology, as well.