BrainDAO stakes $15 million ETH with Frax Ether

Mon Jun 03 2024

BrainDAO, a powerhouse team dedicated to AI research and development, made a record-breaking move by pushing their total staked ETH to a staggering $15 million! This strategic investment demonstrates BrainDAO's confidence in the future of liquid staking and its potential to fuel further growth within the AI ecosystem.

BrainDAO's Strategic Investment

Further solidifying their long-standing commitment to liquid staking, BrainDAO has further solidified its commitment to this strategy. Just two weeks after staking $10 million in ETH with Frax Ether (frxETH), BrainDAO has upped the ante with an additional $5 million deposit. This significant investment brings their total frxETH stake to $15 million.

The $15 million total investment in frxETH demonstrates BrainDAO's commitment to a diversified treasury strategy. Earning staking rewards on their ETH holdings allows the DAO to generate additional resources for funding AI research initiatives and building next-generation AI projects.

BrainDAO’s next-generation AI products include:

IQ.wiki: the world's largest cryptocurrency and blockchain encyclopedia

IQ GPT: the AI-powered assistant for cryptocurrency and blockchain

IQ.social: an AI-powered social forum governed by IQ holders that summarizes crypto-related news

Highly anticipated IQcode.ai: The first AI for smart contract for auditing and generating smart contract code!

The Rise of Liquid Staking

Liquid staking solutions are gaining traction in the DeFi space due to the benefits they offer compared to traditional staking methods. Platforms like Frax Ether provide users with more flexibility and control over their staked assets, making them an attractive option for both institutional and individual investors.

What is sfrxETH?

Frax Ether, a leading liquid ETH staking derivative, was founded by Frax Finance in October 2022 and has proven to be an exceptional choice for the BrainDAO treasury. It uniquely leverages the Frax Finance ecosystem to maximize staking yield and streamline the Ethereum staking process, providing a simplified, secure, and DeFi-native way to earn interest on ETH.

Within the Frax ecosystem, ETH exists in a dual token design: frxETH (Frax Ether) and sfrxETH (Staked Frax Ether). FrxETH acts as a stablecoin, pegged to ETH at a 1:1 ratio, ensuring its value is always linked to Ethereum. On the other hand, sfrxETH is an ERC-4626 vault designed to accumulate the staking yield of the Frax ETH validators. Users can easily exchange frxETH for sfrxETH, allowing them to earn staking yield on their holdings.

Our decision to utilize a liquid ETH staking derivative with Frax Ether has brought numerous advantages, including higher returns and enhanced security. Additionally, it abstracts the need to run validators, enabling yield to be earned on any amount of ETH, while also allowing for easy withdrawals at any time and of any size. This versatility and composability throughout DeFi make it an ideal option for BrainDAO.

What is Eigenlayer?

EigenLayer is the first generalizable network providing programmable trust from Ethereum. Technically, it is a set of smart contracts on Ethereum as well as a set of off-chain node software that allows solo stakers, staking service providers and LST stakers to opt into running new offchain distributed systems.

BrainDAO(IQ) & Frax: A Symbiotic Partnership Fueling Innovation

BrainDAO and Frax Finance have fostered a multi-faceted partnership, fostering growth for both AI and DeFi ecosystems.

As a long-standing top staker of sfrxETH (Frax's liquid staked ETH derivative), BrainDAO has leveraged Frax's staking solutions to generate substantial rewards. These rewards have been instrumental in funding the continuous development and expansion of the IQ ecosystem.

Frax Finance stands out as the first protocol to integrate IQGPT.com, BrainDAO's AI assistant, directly into their Telegram community. This integration further strengthens user access to AI-powered crypto education.

Fraxtal: Expanding the Partnership

The partnership extends beyond staking with BrainDAO actively bridging sfraxETH and other Frax assets to Fraxtal, an EVM-compatible layer 2 rollup chain for Frax Finance. This move lays the groundwork for future development of IQ token liquidity and products within the Fraxtal ecosystem. (Stay tuned for exciting updates)

About IQ

The IQ token is a cryptocurrency dedicated to building a more intelligent future through artificial intelligence and blockchain technology. The IQ token powers a knowledge ecosystem including applications such as IQ.wiki, the world's largest cryptocurrency and blockchain encyclopedia, IQ GPT, the AI-powered agent for cryptocurrency and blockchain, IQ.social, an AI-powered social forum governed by IQ holders that summarizes crypto-related news, and IQ Code, an upcoming AI product created to assist people in coding Solidity and Vyper sets. The token is governed by BrainDAO which also includes BrainDAO's treasury of digital assets.

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