Terra-focused Stader Labs Raises $12.5M, Hits $450M Valuation

The platform offers services to earn rewards with Terra, but will offer staking with Solana, Ethereum 2.0, Cosmos and Near in the future

article-image

Blockworks exclusive art by Axel Rangel

share

key takeaways

  • The company plans to use the funds to grow the staking ecosystem and add seven to 10 new blockchains over the next 12 months and expand into other consumer segments, Founder Amitej Gajjala said
  • The company aims to have $10 billion assets under management by the end of the year, a 1,900% increase goal from current levels, he said

Staking-focused Stader Labs raised $12.5 million in a strategic round, valuing the company at $450 million, the company’s Founder Amitej Gajjala told Blockworks in an interview. 

The company plans to use the funds to grow the staking ecosystem and add seven to 10 new blockchains over the next 12 months and expand into other consumer segments, Gajjala said. 

The round was led by Three Arrows Capital and additional investors include Blockchain.com, Accomplice, DACM, GoldenTree Asset Management, Accel, Amber, 4RC, Figment and angel investors like Prabhakar Reddy, co-founder of FalconX and Matt Cantieri, GM at Anchor Protocol.

In October 2021, Stader raised $4 million from Pantera, Coinbase Ventures, Jump Capital, True Ventures, Hypersphere, Proof, Ledger Prime, Huobi Ventures, Solidity Ventures and Double Peak. 

The platform offers services to earn staking rewards with Terra through its smart contracts, but will support other chains like Solana, Ethereum, Fantom and Cosmos in the future. Its two core products are Stake Pools, where users can stake in pre-defined baskets of validators grouped by performance, and Liquid Staking, where users receive a liquid token (LunaX) when staking to participate in yield-boosting DeFi strategies. 

Since the company launched Nov. 23, 2021, it has over 20,000 unique wallets staking on its platform and about $500 million Terra has been staked with Stader Labs, Gajjala said. The majority of those staking with the company are retail investors, but there are some funds on Terra staked with Stader, too, he added.

“The objective is to build an economic ecosystem to grow and develop custom solutions such as yield redirection with rewards, liquid staking, launchpads, gaming, and more,” the company said in a statement. 

Gajjala said the company aims to have $10 billion in assets under management by the end of the year, with the goal of a 1,900% increase from current levels. 

“In a nutshell, we want to be the AWS for staking infrastructure,” Gajjala said. “We want to create staking smart contracts that can be customized for different use cases,” he added.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

Revolut said that the standalone crypto exchange is currently “invite only”

article-image

The stock price jump comes after Coinbase reported ending its seven-quarter run of net losses during the fourth quarter

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders