James Slazas, founder and CEO of LiquidStake and DARMA Capital, describes their retail and institutional offerings for customers who want to stake on Ethereum 2.0 but still access the locked-up capital. In this episode, we discuss: 

  • what problem LiquidStake solves and how 
  • what happens if the dollar value of someone’s stake drops below the amount that they’ve borrowed
  • who keeps the ETH in a liquidation 
  • how LiquidStake makes money 
  • how they determine the price of ETH to make the loan and what it does in the event of a flash crash on an exchange
  • how LiquidStake and DARMA Capital are also serving institutional clients
  • how total return swap agreements with DARMA work 
  • why they offer more tax and regulatory clarity
  • why LiquidStake currently offers USDC for its stablecoin
  • the pros and cons of a centralized loans on staked ETH 2 over decentralized ones 
  • the other crypto systems LiquidStake is partnering with
  • how LiquidStake and DARMA Capital are able to make these loans from a regulatory perspective

Thank you to our sponsor!

Crypto.com: http://crypto.com/

Episode links:

James Slazas: https://twitter.com/DARMA_Slazas

Liquidstake: https://liquidstake.com

DARMA Capital: https://darma.capital

LiquidStake announcements: https://www.coindesk.com/ethereum-heavyweights-launch-liquidstake-loans-to-ease-eth-2-0-lockup https://www.theblockcrypto.com/linked/84277/eth2-liquidstake-borrow-eth-validators

LiquidStake blog post: https://liquidstake.com/blog/1

Link to the Crypto News Recap: