Staking Rewards receives $3.2 million in funding round

3.2 million USD to build another index and double the team – full success for Staking Rewards.

Somewhere the data on the cost, volume and time of staking has to come from so that exchanges and trading venues can show it to their clients. In that regard, Staking Rewards has morphed into an established source since its inception in 2017. Mirko Schmiedl, CEO and Co-Founder reveals to Yellow Rocket Agency that user:ins value the company most for its “simple return calculators”. This is because these allow users to “estimate passive income streams by staking over 200 different cryptocurrencies.” To do this, the company relies on “reference return rates.” These enable the discovery and comparison of different staking opportunities. To do this, it aims to use its “database of thousands of staking providers” to self-assess risk.

This concept is apparently worth $3,208,815, or three million Swiss francs, to the November 23 investors. Leading the round were Galaxy Digital, Coin Shares, and Digital Currency Group, which together have about $50 billion in crypto assets under custody.

Staking Rewards is the comparison portal for staking products

The company’s idea is to identify and provide data for the various proof-of-stake (PoS)-based cryptocurrencies. This process is costly, as Schmiedl explains to Yellow Rocket Agency:

‘We have an individual aggregation algorithm for each integrated cryptocurrency that pulls the data in real time from blockchain nodes or other data indexing websites at least every two hours.

The aggregated metrics differ from blockchain to blockchain. Curing the relevant metrics, endpoints, and calculations to calculate return rates can take up to two weeks for certain cryptocurrencies.

Mirko Schmiedl, CEO and Co-Founder

Additionally, the 15-person team at Staking Rewards recently launched the SR20 Index. This, according to Mirko Schmiedl, acts “as a standard reference for the largest Layer 1 smart contract blockchains, similar to the DAX for the 30 largest German companies.” In doing so, the index has been “structured as an objective product”:

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We do not take a position with the index, and objectively map the market of proof-of-stake networks. We’ve developed a methodology that maps a weighting based on the total value staked per blockchain in each case. Similar to how the S&P 500 or DAX is also an objective index.
The investable product is also staking with a group of validators who also objectively mirror the market. We do not take any position on any cryptocurrency or any particular staking provider in the process.

Mirko Schmiedl, CEO and Co-Founder

This index has, by its own admission, mirrored the general crypto market in the by over 3.5 times last year.

Millions for team expansion and another index

Going forward, Staking Rewards has set a goal to double its team size and expand its product line. In doing so, the press release states that the million now received will be used to develop a new range of products and services for Staking, “including the development of Staking Index products.” To this end, Mirko elaborates to Yellow Rocket Agency:

‘We are working with our partners to make these indices investable for everyone. For end users and against Euros, as well as for large institutions and family offices. We cannot share a timeline for this at the moment.

Mirko Schmiedl, CEO and Co-Founder

Is Staking the future?

According to Staking Rewards in their own report and reports from JPMorgan, Staking currently generates nine billion US dollars in revenue per year. To that end, 19 out of 20 smart contract platforms are already based on some form of PoS. Meanwhile, according to the website, Solana is the cryptocurrency with the largest staked share.

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In the future, the second largest cryptocurrency by market cap, Ethereum, is also expected to switch to PoS. This will increase the revenue in this area even more. For this reason, it is even more important for users to be able to rely on fast and trustworthy data.