Sharplink to deploy $200M of ETH on Linea to unlock DeFi yields

SharpLink Gaming has announced plans to deploy $200 cardinal worthy of Ether (ETH) from its firm treasury onto Consensys’ Linea network.

The institution said the multi-year inaugural volition usage Linea’s zkEVM layer-2 infrastructure to make onchain output and summation the ratio of its ETH holdings. According to Tuesday’s press release, the strategy aims to seizure “highly competitive, differentiated, risk-adjusted ETH-denominated returns.”

SharpLink plans to make yields from staking, restaking rewards earned by helping unafraid EigenCloud’s decentralized verification services (AVSs), and incentives from Linea and ether.fi — a decentralized liquid staking and restaking protocol.

Staking refers to locking up cryptocurrencies to assistance unafraid a blockchain web successful speech for rewards. Restaking builds connected that thought by allowing users to reuse oregon “restake” their staked assets to enactment further decentralized services and gain other rewards.

The $200 cardinal deployment volition beryllium managed nether organization safeguards done Anchorage Digital Bank, SharpLink’s qualified custodian.

SharpLink is presently the second-largest firm holder of ETH, with 859,853 ETH worthy astir $3.57 billion, oregon 0.71% of full supply, according to CoinGecko data. The planned deployment represents astir 5.6% of its treasury.

Top 5 Ethereum treasury companies. Souce: Coingecko

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DeFi output strategies

SharpLink isn’t unsocial successful turning to decentralized concern to boost onchain returns.

On Sept. 2, ETHZilla (ETHZ) announced it would deploy $100 cardinal of ETH to ether.fi to heighten output connected its treasury holdings. ETHZilla is presently the fifth-largest Ethereum integer plus treasury (DAT), holding 102,326 ETH astatine the clip of writing.

In February the Ethereum Foundation, the nonprofit that supports Ethereum’s halfway improvement and ecosystem, deployed 45,000 ETH into DeFi protocols, including Spark and Compound. The foundation’s treasury policy from June disclosed plans to determination beyond passive holdings by staking and deploying ETH crossed DeFi protocols.

Centralized exchanges person besides begun integrating DeFi output strategies. In September, Coinbase partnered with DeFi lending protocol Morpho to fto users lend USDC (USDC) stablecoins and gain yields of up to 10.8%.

Less than a period later, Crypto.com announced plans to integrate Morpho into its Cronos blockchain, allowing users to deposit wrapped ETH and different assets to gain stablecoin yields done caller lending vaults, which is expected aboriginal this year.

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