KR1 PLC (LON:KR1) said it has invested a total of US$150,000 in return for 15mln tokens in the Lido project.
Lido is a liquid Ethereum 2.0 staking solution that allows users to earn Ethereum (ETH) staking rewards with no lock-ups or minimum deposits, while also contributing to the security of the Ethereum 2.0 blockchain.
WATCH: KR1 says staking is ‘giant step’ and a ‘transformational leap for shareholders’
Staking is when cryptocurrency held in a digital wallet are used to support the security and operations of a blockchain network. The tokens are locked in the wallet and in return, the staker receives financial or another form of reward.
However, through the issue of a proxy token, KR1 said Lido creates a liquid alternative for staked Ethereum, allowing tokens that are otherwise locked up to be transferred, traded and used across other Ethereum decentralised finance (DeFi) applications.
The company said this meant Lido could become “an important base primitive in DeFi, and a foundational building block for the Ethereum ‘money-lego’ stack”.
“We were very pleased to see the recent launch of the first phase of Ethereum 2.0’s roadmap and the ensuing enthusiasm from the community for staking ETH. With such a large and diverse community of ETH holders, there is huge demand for innovative staking products and Lido has created a very compelling offering. Their focus on simplicity, great user experience and flexibility will garner huge interest and we’re excited to be involved at such an early stage”, KR1 managing director and co-founder George McDonaugh said in a statement.
In a separate announcement, the company also said it has invested US$200,000 for 797,043.48 tokens in the Swarm project.
Swarm is a new decentralised storage and communication platform consisting of peer-to-peer networked nodes. The system sustains itself through a built-in incentive system enforced through smart contracts on the Ethereum blockchain.
KR1 added that Swarm’s redundant architecture makes its system resilient to connectivity issues, node churn and targeted DDOS attacks. The platform is also designed to integrate with the Ethereum blockchain for domain name resolution, service payments and content availability insurance.
“Swarm is a major leap for running unstoppable financial and social applications, as well as providing data that could be around for thousands of years. With Swarm, we are one step closer to the big dream of ‘Write once, run forever!’. The technology will enable more innovation on Ethereum and will also have an impact as an important untamperable permanent record keeper”, said fellow KR1 managing director and co-founder Keld van Schreven.
–Adds details of Swarm investment–