Lasso Finance provides digital asset businesses infrastructure as a service offering to enable secure, scalable, and simple access to decentralized finance. Liquid staking of Ether is Lasso Finance’s first offering. Liquid staking enables assets to be staked to Proof of Stake (PoS) networks which secure the networks and create wrapped tokens connected to the staked asset giving holders a voucher token that can be utilized on exchanges and in DeFi.
Centralized Finance (CeFi) is the entry point for most users to Decentralized Finance (DeFi) and essential to the entry of institutional capital to the sector. CeFi is the key to DeFi.
Lasso Finance enables its partners to offer asset staking to users. This generates active participation in decentralized networks with node operations, further decentralizing the network, which in turn strengthens the network. Users earn staking yield as a reward for active network participation. ETH, as the second-largest digital asset and largest community of users, creates an opportunity with the ETH 2.0 upgrade to Proof of Stake. The opportunity is for CeFi to enable users to stake ETH to the Beacon Chain, to generate a ‘savings’ rate for ETH via staking.
Lasso Finance provides three core benefits to business operators:
- Staking as a Service reduces technical risk and operational expense
- Liquid Staking creates a new asset for market participation
- Separation of services limits regulatory exposure & increases decentralization
How does Lasso ETH 2.0 Liquid Staking Work?
Lasso Finance’s commercial partners submit multiples of 32 ETH from whitelisted addresses to the Lasso-ETH Smart Contract. 32 L-ETH is wrapped by the Lasso-ETH Smart Contract and sent to the corresponding partner’s whitelisted receiving address.
Lasso Finance deposits the 32 ETH to the Beacon Chain Smart Contract and provisions an ETH 2.0 Validator Node. The Validator Node Deposit is broadcast to the community via Chain.Link, and the status of the Validator node once on the Beacon Chain network including its ETH staking balance is additionally broadcast via Chain Link.
The Lasso Smart Contract only interacts with whitelisted addresses. Meaning, the Lasso Smart Contract will only accept ETH staking deposits from approved addresses and will only publish back L-ETH to registered addresses.
It is Lasso Finance’s intention to only partner with companies that it can properly vet in order to verify to ensure an ethical and compliant distribution of L-ETH. The whitelisting of addresses to and from the Lasso Smart Contract will only incur within the context of a legal agreement between Lasso Finance and the participating partner.
The ‘redemption’ of the connected Beacon Chain staked ETH for L-ETH is subject to the ‘release’ of the staked ETH and the conditions of the ETH 2.0 protocol. The release date and conditions of ETH 2.0 and the staked ETH are currently uncertain. For more information please refer to the Ethereum Foundation’s ETH 2.0 reference page: https://ethereum.org/en/eth2/.
L-ETH holders will be able to redeem the connected Beacon Chain staked ETH once the ETH 2.0 upgrade implements the ability to ‘unlock’ the ETH staked to validator nodes. Each L-ETH maps 1:1 to the ETH that wraps it with the additional bonus of a proportional share of the L-ETH validator pool reward share less the Lasso Staking Service Fee.
Lasso Finance seeks to provide its partners and the community as decentralized a service as possible. The foundation of this intent is open-sourcing the Lasso-ETH Smart Contract, executing as much as possible ‘on-chain’ as well as enabling open data feeds connected to L-ETH whenever possible, and publishing L-ETH to DeFi projects to enhance the utility of L-ETH for the community.
Want to learn more about ETH 2.0 Validator Staking? Check this previous post: “What is ETH 2.0 Staking Yield?”