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Dash, a payment-focused cryptocurrency has joined hands with StakeHound to let its users access a broad range of decentralized finance (DeFi) services. Dash unveiled this news via an official announcement on October 19, noting that this partnership will also see its users earn network rewards by depositing funds through StakeHound. Reportedly, this collaboration mandates all Dash users to send tokens to StakeHound in order to take advantage of the nascent DeFi sector. After the users send the tokens, StakeHound will then create and a wrapped ERC-20 token dubbed stakedDASH back to the users.
According to the announcement, stakedDASH will let DASH holders earn additional profits through leading DeFi applications. stakedDASH will allegedly be tradeable in leading DeFi platforms, including UniSwap, Aave, and Curve by leveraging either the Ethereum or Radix network. However, the users will not have to select a specific network as StakeHound is a cross-ledger platform. By using StakeHound, Dash users will be able to convert their stakedDASH to DASH at any given time.
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Per Felix Mago, DASH NEXT’s co-founder,
“With DeFi, different Blockchains are finally coming together. I am very excited about this partnership as it provides DASH users the benefits of DeFi applications such as lending or borrowing, and Ethereum users with an easy way to use DASH’s established global payment ecosystem.”
Earning staking rewards without creating masternodes
Per the publication, StakeHound will store the DASH tokens it receives from DASH holders in a masternode. These coins will reportedly earn the standard rate of network rewards, which the firm will issue to users as stakedDASH. As such, Dash users will get the benefits of network staking without having to lock up the 1,000 DASH needed to create their masternodes. By collaborating with StakeHound, Dash has reduced the minimum amount that users need to stake to just 1 DASH, which is worth approximately £58.6 at the time of writing, 8:09 PM UTC.
According to Dash’s marketing manager, Mark Mason, this partnership will not only let Dash holders access the DeFi sector but also enable DeFi users to access DASH. Mason added that this bridge offers an extra on-ramp for DeFi. On top of this, the bridge will also provide an off-ramp for DeFi users that aim to convert their profits into a well-established cryptocurrency, which has uses beyond the DeFi sector. Mason went on to state that this bridge will help DeFi users swap DeFi tokens for DASH, allowing them to spend their earnings in the real world.