DeFi
Laser Digital partners with Dinero for institutional LST
The ipxETH product is exclusively backed by Dinero’s liquid staking token pxETH.
Dinero, the recently rebranded cartel Redacted, has partnered with Laser Digital, a subsidiary of Japan’s largest investment bank and brokerage group Nomura, to launch an institutional liquid staking token offering exposure to ETH.
Spear On July 29, the institutional token pxETH (IpxETH) is fully backed by Dinero’s liquid staking token, pxETH.
“ipxETH is designed to meet the needs of institutional investors seeking yield from ETH staking and to mitigate the perceived risks and complexities commonly associated with DeFi and ETH staking,” Dinero told The Defiant. “For the first time, accredited participants will have easy access to DeFi’s most profitable Ethereum staking product via ipxETH, allowing us to onboard a new wave of market participants like [registered investment advisors]brokers and more. »
Dinero noted that the IpxETH fund was developed in partnership with Galaxy Digital.
The launch of IpxETH follows the market debut of Ether Spot exchange-traded funds (ETFs) on July 23, opening the door to increased institutional adoption of ETH.
While spot Ether ETFs provide a regulated vehicle for institutions to access exposure to ETH, fund seekers have been advised to withdraw all provisions relating to staking in May.
As such, the IpxETH token offers a significant point of difference compared to spot ETFs by providing holders with exposure to staking. Dinero and Laser Dinero describe IpxETH as an alternative to spot Ether ETFs.
The token is exclusively available to institutional investors such as hedge funds and private investment firms, rather than retail buyers.
The price of DINERO has dropped 5.7% in the past 24 hours despite the news, according to CoinGecko.
Dinero rebranding
The launch comes shortly after Dinero’s rebranding from Redacted Cartel.
Redacted started life as a OlympusDAO fork in 2021, but abandoned aggressive token inflation in pursuit of protocol-held liquidity in favor of a Vote-Escrow mechanism designed to incentivize long-term token locking combined with revenue distributions to rlBTRFLY holders over the following year.
The Dinero rebranding was the first spear in May and finalized On July 19, the project launched. This change in direction coincides with the project’s move towards building a “full-stack infrastructure for Layer 1 and Layer 2 protocols” via its existing Dinero protocol. In addition to pxETH and its native token DINERO, the project also plans to launch a pxUSD stablecoin and an Ethereum transaction relay.
The project token migration On July 22, the conversion of BTRFLY to DINERO was launched, with Dinero describing the move as a modernization of its tokenomics. BTRFLY was converted into a new token at a rate of 2,000 DINERO each. Its previous rlBTRFLY Vote-Escrow staking program and ETH-based revenue distributions were replaced with a simplified DINERO staking mechanism as part of the overhaul.
DINERO staking is subject to a seven-day warm-up period, during which tokens cannot be de-staked or transferred, and after which users are free to de-stake. DINERO staking also provides three times the voting power of un-staked tokens when participating in governance. The new program has also reduced the rate of new token issuance.