Geode Finance launches staking toolkit for DAOs and unlocks new revenue streams | news

LONDON, Oct. 06, 2022 (GLOBE NEWSWIRE) — Geode Finance, a novel liquid staking infrastructure provider for DAOs, has been successfully deployed on Avalanche mainnet and is partnering with Yield Yak to deliver their own liquid staking solution and token, yyAVAX, to bring to market. With Geode’s infrastructure, DAOs can create new revenue streams and leverage the full value of PoS networks while providing new financial incentives for their members. Geode is preparing to deploy on Ethereum in early 2023, a burgeoning chain for DAO activity to unlock new revenue opportunities at scale.

According to the World Economic Forum, the number of people around the world working in decentralized autonomous organizations increased from 13,000 to 1.7 million in 2021, and over $9.7 billion will be invested in DAOs worldwide. There are a variety of DAO verticals such as DeFi protocol DAOs like Uniswap and Aave, member-driven venture capital funds, social DAOs like BAYC, grant and charity DAOs like Gitcoin, and many more untapped opportunities. With this new global phenomenon, there is a need for business tools that are specifically geared towards this market.

Liquid staking improves the DeFi experience

Proof-of-stake chains allow validators to secure and validate the network by earning rewards in native tokens (i.e. ETH or AVAX) by locking a fixed number of tokens for a specified period of time. There are therefore over 236M AVAX and 12.9M ETH locked validators that cannot be used for any other purpose and cannot be unlocked early, no matter what market conditions arise. As a result, many prospective investors may shy away from staking as an investment strategy and gravitate toward other income avenues that are more flexible.

Liquid staking solutions like Lido have generated billions of dollars in TVL due to their ability to offer access to staking rewards by allowing investors of all sizes to participate. By creating a token representing Ether Staking (stETH), they can create a market that allows people to easily enter or exit their position, eliminating the inflexibility of staking. Additionally, users can leverage their stETH by depositing it in various DeFi applications such as lending, borrowing, and liquidity pools to earn even more returns.

Liquid staking as a service for DAOs

Despite the growing popularity of such liquid staking solutions among consumers, there are no B2B2C liquid staking products tailored for DAOs. DAOs are currently limited both in their ability to activate their government bonds totaling over $9.7 billion and in their ability to provide sustained returns to their users.

“Liquid staking has proven its value by evolving into a multi-billion dollar market and we are excited to be able to help DAOs provide staking revenue to their users while providing stronger network security for PoS networks to promote,” said Simon Furlong, co-founder of Geode Finance.

Geode Finance provides the ultimate infrastructure solution for DAOs to use liquid staking under their own governance terms. Businesses can outsource their staking solution with very little effort and generate additional revenue in a variety of ways:

• Integrate staking returns into their own products like DeFi trading platforms, NFT marketplaces, investment DAOs and more
• Activate portions of their existing treasuries to allocate to liquid staking initiatives and generate passive income
• Unlock additional revenue by charging staking-as-a-service fees, currently ~10% of staking revenue.
• Engage additional members by offering desirable liquid staking benefits within their own product without requiring members to look elsewhere for the same opportunity
• Take advantage of Geode’s advanced infrastructure to optimize yield even during periods of high volatility

Additionally, DeFi-savvy DAOs like Yield Yak can go a step further and create composable integrations within the broader DeFi ecosystem to expand the use cases for their staking derivative, further driving adoption and fee income.

“Geode has been an excellent partner with Yield Yak and we are excited to be part of Geode’s trusted liquid staking universe. The Geode team has been incredibly responsive and focused on bringing quality liquid staking infrastructure to YIeld Yak and yyAVAX users,” said Dylan Coady, Director of Marketing at Yield Yak.

Geode is now live on the Avalanche mainnet, has completed audits from Coinfabrik, and plans to expand to Ethereum by early 2023.

About Geode Finance

Geode Finance is the first of its kind liquid staking infrastructure, tailor-made for DAOs. With Geode’s customizable liquid staking products, DAOs and their members will experience vastly improved returns, new revenue generation opportunities, and capital efficiency across the DeFi landscape on Proof-of-Stake blockchains. Geode Finance aims to bring asset-based revenue generation to all proof-of-stake blockchains in a secure and combinable manner.

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