We are all familiar with Dash cryptocurrency. In fact, Dash is the payment focused cryptocurrency, which provide anonymous transactions. In the latest news, Dash now has a bridge to DeFi.
Dash is collaborating with StakeHound in order to make a bridge to DeFi. As a result, dash holders are able to earn masternode staking reward and also have access to DeFi services meanwhile.
It announced on Monday that all the tokens, which deposited with StakeHound would earn network rewards. In fact, they can collect the reward using the Dash masternode system.
The tokens turn to a new token called stakedDASH
If the Dash holders want to take the advantage of this new option, they must send tokens to StakeHound. Once the tokens sent, it generates and sends back wrapped ERC-20 representation instantaneously. The new generated token called stakedDASH.
The stakedDASH holders would be able to trade or exchange their tokens in major DeFi platforms. The platforms which listed stakedDASH include Aave, Uniswap, Curve, etc. These platforms use Radix or Ethereum networks. The stakedDASH token holders could convert their tokens to the original Dash as well.
Meanwhile, if the Dash holders hold their tokens by StakeHound, the deposited tokens will be held in a masternode and the holder can earn the standard rate of network rewards. This reward issue to users as additional stakedDASH.
The benefit of this method is that it’s not necessary for Dash holders to lock up 1,000 Dash in order to create a master node. By using StakeHound they can deposit minimum 1 Dash, which worth around $66.97 (at the time of writing) to be a masternode.
The collaboration has benefit for both Dash holder and DeFi users
Mark Mason, the Dash marketing manager, mentioned that the new collaboration allows Dash users access to DeFi as well as DeFi users access to Dash.
Mason believes that the new collaboration helps DeFi users to convert their gains into a valuable cryptocurrency, which works beyond DeFi ecosystem. Converting the DeFi tokens into the Dash enables users to use their gains in the real world.