Dash holders will soon be able to access a wide range of decentralized finance, or DeFi, services through a collaboration with StakeHound.
According to an announcement on Monday, tokens that are deposited with StakeHound will also earn network rewards through the Dash masternode system.
In order to take advantage of the burgeoning DeFi market, Dash holders must send tokens to StakeHound, which will then instantly generate and send back a wrapped ERC-20 representation called stakedDASH.
StakedDASH will be tradable and usable in major DeFi platforms such as UniSwap, Aave, Curve and others, using the Ethereum or Radix networks. They will also be able to be converted back into the original Dash tokens at any point.
Meanwhile, the Dash tokens held by StakeHound will be held in a masternode and earn the standard rate of network rewards, which will be issued to users as additional stakedDASH.
This will enable Dash holders to gain the benefits of network staking, but without needing to lock up the 1,000 Dash necessary to create their own masternode. The minimum amount required to stake through StakeHound is just 1 Dash, worth $66.97 at publishing time.
According to Dash marketing manager Mark Mason, the collaboration will not only allow Dash users access to DeFi but also allow DeFi users access to Dash.
Mason said that the bridge “provides an additional on-ramp for DeFi, but more importantly a much-needed off-ramp for DeFi users who wish to easily convert their gains into a well established scarce cryptocurrency with utility beyond the DeFi ecosystem. This allows DeFi users to exchange DeFi tokens for Dash enabling them to actually spend and use those tokens in the real world.”
StakeHound founder and CEO Albert Castellana also stated an intention to build and integrate DeFi capabilities into the upcoming Dash Platform. As Cointelegraph reported, this proposed development will enable data to be stored within the network in the form of a decentralized cloud service.