Liquid crypto staking has been all the rage in crypto for the past couple years. Its no wonder either, because having the opportunity to get staking rewards while still being able to use your crypto in DeFi for additional yield can create truly mind-numbing returns for savvy investors.
Not only that, but even the more risk-averse investors could find ways to increase their crypto staking yield by using their liquid staking tokens in DeFi protocols.
Alluvial: Liquid Staking For Whales
Alluvial is a new liquid staking startup that wants to capitalize on the liquid staking narrative by capturing the institutional-grade market, and bring crypto staking solutions for those who command substantial capital. Wealthy investors, funds, VCs and anyone who needs solutions that are above the average liquid staking interfaces.
There has been growing demand amongst institutions and enterprises that want to access liquid staking but haven’t had a solution that meets compliance and security standards,
The news was revealed Tuesday during Blockworks Permissionless event in West Palm Beach.
Alluvial is led by Matt Leisinger, former head of liquid staking products at Figment, Nicolas Maurice, the former chief technology officer of staking-as-a-service platform Kiln; and Mike Taormina, former head of institutional business at the Index Cooperative.
The startup is being backed by crypto staking giants Figment and Coinbase Cloud, although it has not been disclosed whether these companies have an equity stake in the new startup.
Big Money Wants Security & Decentralization
Security and redundancy are likely some of the more immediate concerns for investors that are depositing large funds into crypto staking contracts.
Other concerns from institutional investors are the centralization of staked tokens, and the custodial nature of many of these services. That’s why Alluvial aims to build a non-custodial solution.
Investment strategy, while not listed as part of Alluvial’s selling points, could also be a big one for staking services catering to the wealthy investor – What’s the best strategy to deploy liquid staking tokens? How should you distribute your stake?