Simply put
- Sharplink Gaming is set to explore staking its Ethereum holdings within the Linea network once it launches on Mainnet.
- Joseph Chalom, co-CEO of Sharplink, mentioned that the company is currently staking a significant portion of its assets through custodians, though plans are in place to evolve this strategy.
- Sharplink has joined the Linea Consortium, which consists of companies dedicated to managing the issuance of Linea tokens and ensuring the network’s success.
Sharplink Gaming is planning to look into staking part of its $3.6 billion Ethereum assets on the Layer-2 network Linea when it officially hits Mainnet.
Chalom, speaking to Decryption, noted that currently, the company is utilizing custodians like Anchorage and Coinbase for staking. However, as Sharplink grows, it aims to broaden its staking strategies to pursue better yield opportunities.
“When you manage billions in ETH and evaluate your staking options, you can tap into Linea’s staking chances,” Chalom said, emphasizing its significance for both Consensus and the Linea Consortium. If there’s a chance for improved yields through adjusted risk, they’ll certainly pursue it.
He also mentioned that Sharplink has been actively staking Ethereum through both native and liquid staking tokens. As they identify more staking opportunities, they’ll consider those that are based on Linea.
Chalom highlighted the need to drive tangible activities within Ethereum-focused projects, with Linea being a prime example. He believes fostering quality activities can potentially raise Ethereum’s market value.
He reiterated their commitment to support Ethereum and its Layer 2 projects, indicating that token assignments and exploring staking opportunities are crucial given the ETH they manage.
Back in July, Sharplink became a part of the Linea Consortium, which oversees 75% of the token distribution. Chalom pointed out that for the consortium’s success, it’s essential that more than 80% of the tokens go towards supporting on-chain projects.
Notably, Linea’s creator, Consensys, is helmed by Joe Lubin, a co-founder of Ethereum, and serves on Sharplink’s board. This connection naturally positions Linea to bolster Ethereum’s ecosystem.
As of now, it’s undetermined how many Ethereum assets will be bridged to Linea and how this will play into yield generation.
Chalom explained that they are still refining their staking portfolio strategy, hoping to devise the best combinations beyond basic custodial solutions to attract more liquidity to the Linea network.
He acknowledged that sharing their precise plans is complicated at this stage, as they work to understand how best to manage their ETH assets. The aim is not just to preserve capital but to increase its value.
Currently, Sharplink’s Ethereum holdings, an estimated 0.69% of the total supply, are primarily managed through custodians. However, the company is keen on diversifying its approach to using these assets.
Chalom noted this is a critical moment for investment strategies, and they want to explore diverse options. Their goal is to achieve optimal yields for investors while carefully managing risk.
