In a bold move to reshape Ethereum - based investing, ETH Strategy, a new treasury accumulation protocol, collected 12,342 ETH, around $46.5 million, to help people invest in a smarter way. The goal is to give investors more gains from the currency without the usual risks like sudden liquidations or value loss during market ups and downs.
Source: X
With the STRAT token launch set on Uniswap v4, an ethereum blockchain based product, for July 29 at 13:00 UTC, the anticipation for it is already high. But the question is could this protocol reframe how treasuries operate?
The protocol conducted the accumulation through three models, raising 12,342 coins through three ways: 6900 coins from private sale , 1,242 coin from public sale, and 4,200 coin via rare puttable warrants.
Now it is planning to use over 955 of the raise count to 11,817 ETH for core functions like staking for yield generation, and providing protocol level liquidity to meet out capital efficiency and volatility.
The remaining i.e. 525 coins will be used to strengthen the ecosystem.
By putting most of the part directly into ether, the project is not just investing but showing strong belief in digital asset's long term role as leading blockchain.
What makes STRAT’s listing on uniswap v4 unique? Well, Instead of a traditional two sided liquidity pool, ETH Strategy will launch with a single sided, using ATM (at the mark) mechanism which is inspired by finance market tools used by firms like sharpLink and BitMine.
This approach may be helpful in the prevention of DeFi pitfalls like impermanent loss and low liquidity, generally faced by new launches.
While ETH Strategy dominates headlines, other significant crypto developments are progressing. Major of them includes raising of $1 million by Priority Group to scale Bitcoin network nodes for high speed transactions, launching of a Discounted Buy product by Binance Earn, announcement of AI+Web3 research lab with a backing of around $12.8 million, and raising of red flag over pump and dump schemes by MLG token volatility.
ETH Strategy is changing how people get extra gains from Ethereum. Instead of using risky margin trading, it uses a safer system backed by a treasury. This could appeal to big investors or cautious institutions who want smart and safer exposure.
If STRAT can offer both strong profit and protection from big losses, it might change the way people invest in ethereum through DeFi. And with the currency continuing to lead layer 2 scaling, validator rewards, and institutional adoption, are we witnessing the rise of smarter DeFi protocols that balance exposure safely?
Well all preserved in the hands of the upcoming phase.
Bhumika Baghel is a rising crypto content writer with a deepening interest in blockchain technology and digital finance. With a keen understanding of market trends and cryptocurrency ecosystems, she breaks down intricate subjects like Bitcoin, altcoins, DeFi, and NFTs into accessible and engaging content. Bhumika blends well-researched insights with a clear, concise writing style that resonates with both newcomers and experienced crypto enthusiasts. Committed to tracking price fluctuations, new project developments, and regulatory shifts, she ensures her readers stay informed in the fast-moving world of crypto. Bhumika is a strong advocate of blockchain’s potential to drive innovation and promote financial inclusion on a global scale.