Stroom Network Raises $3.5M to Bring Liquid Staking to Bitcoin Lightning Network.

Ukrainian-based crypto startup Stroom has raised $3.5 million in seed funding led by crypto investment firm Greenfield Capital to solve Lightning Network’s Liquidity challenges. Other participants include investment firms Lemniscap, No Limit Holdings, Cogitent Ventures and Angel investors.

Stroom is a financial protocol for the Bitcoin Lightning Network operating on EVM-based blockchains like Ethereum. With Stroom protocol, users will have the opportunity to earn revenue from the Lightning Network without the need to lock-up their BTC or maintain their own node infrastructure.

Stroom Protocol uses STROOM as the native token of the protocol, granting holders voting power in the DAO that determines important network parameters. The voting influence of DAO participants is proportionate to the number of STROOM tokens they stake within the voting contract.

The protocol operates as a DAO like structure using a Multi-Party Computation (MPC) signature mechanism to govern funds allocated to payment channels as liquidity. Today, Stroom has 100+ Open channels on the Lightning network.

The Lightning Network is a layer 2 network of bidirectional payment channels built upon Bitcoin, its aim is to facilitate faster and more cost-efficient transactions. It’s a next-generation payment rail technology due to real-time settlement and horizontal scalability, which enables low fees and instant payments.

Stroom aims to establish a connection between the Lightning Network (LN) and the decentralized finance (DeFi) ecosystems on various EVM-compatible chains.

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