Stroom, a Bitcoin liquid staking protocol, raises $3.5M

Strooma protocol for generating revenue on the Lightning Network without
locking its bitcoinshas raised 3.5 million dollars from Greenfield
Capital, Ankr and others.

Stroom is presented as a ” liquid staking Bitcoin “integrated into
Lightning Network and offering bitcoiners the opportunity to win Lightning routing
feeswhile collecting an additional yield on Ethereum.

“Stroom aims to provide a bridge between ecosystems LN and DeFi on all compatible channels
EVMstarting with Ethereum. Stroom reduces the technical burden associated with depositing
Bitcoin in the LN while simultaneously allowing users to generate performance in
DeFi ecosystems EVM-compatible ecosystems”, explains the project on its website.

As a reminder Lightning Network (LN) is a Layer 2 payment protocol built on top of
Bitcoin which enables transactions to be carried out more quickly and at lower cost. The
liquid staking designates the action of locking tokens on a blockchain proof of
stakewhile enabling the use of liquidity in decentralized finance applications.

The Stoorm protocol features a token named lnBTC. This is a token issued on Ethereum in the ERC-20
format and representing a ” liquid derivative of BTC used in the Lightning Network
“.

The startup’s financing round was led by venture capital firm Greenfield Capitalwith a strategic
investment from Ankr via its Mission Street branch. LemniscapNo Limit Holdings and Cogitent
Ventures also participated in the deal, according to the announcement.

Many factors underscore the long-term importance of Bitcoin, which repeatedly motivates us to invest in
the Bitcoin ecosystem. We are delighted to support Stroom, a protocol that provides dormant Bitcoin liquidity to
be actively used to strengthen the Lightning network and at the same time provide competitive returns to
liquidity providers,” said Jendrik Poloczek, director of Greenfield.

The Lightning Network is considered a very promising technology in the Bitcoin
ecosystem, despite its relatively low level of use. Last month, for the first time, LN’s capacity exceeded
5500 bitcoins. At the time of publishing this article, its capacity has decreased to 4750 bitcoins.

The recent trend towards integrating deposits and withdrawals via Lightning by major exchanges such as
Binance and Coinbase validates the huge potential behind it,” commented Rostyslav Shvets, Stroom’s boss.

In July, No. 1 Binance began offering its customers the possibility of depositing and withdrawing
Bitcoin through this solution. Coinbase is currently working on an integration.

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