By
Kseniia Klichova
April 22nd, 2024
GoGoPool is the first permissionless and decentralized staking protocol for Avalanche, built specifically for Subnets.
GoGoPool, a decentralized staking protocol on Avalanche, has secured $5M in a seed round co-led by Framework Ventures, and blockchain-focused investment firm CoinFund.
The list of other investors that participated in the round for GoGoPool includes, Republic Capital, (the company’s Capital investment arm) FinTech Collective, Genesis Block Ventures, Avalaunch, Flow Traders, Builder Capital, Alpha Crypto, Silverstone Ventures and Taureon.
With the use of GoGoPool’s decentralized tokenization technology, hardware operators can join the protocol, be paired with liquid stakers’ funds, and start validating the Avalanche Primary Network for a fraction of the usual price.
In exchange for their staked AVAX, holders receive a wrapped ggAVAX token, gaining access to GoGoPool’s community benefits and instant liquidity. Stakers can join the protocol by staking GoGoPool tokens when a subnet is launched, giving them access to the validator set.
GoGoPool is the first permissionless and decentralized staking protocol for Avalanche, built specifically for Subnets.
The protocol is also the only natively-built liquid staking protocol on the Avalanche blockchain and serves both liquid stakers and validator node operators.
It tackles the difficulties associated with liquid staking and the introduction of subnets, the network’s main scaling technique.
GoGoPool also boasts of a unique feature that allows liquid stakers and subnet owners to collaborate to incentivize hardware operators on the protocol, lowering the cost of launching subnets and boosting validator node effectiveness.
The staking protocol gives innovators the freedom to build on Avalanche and grow their subnets.
CEO of the firm, Steven Gates speaking after the seed round, stated that “Subnets have the potential to be the WordPress for blockchains, allowing rapid experimentation with new models and ideas – but are currently held back by a few key friction points. It would be a waste of potential if we didn’t explore solutions to the limitations of launching subnets.”
He added:
“Currently 60% of AVAX is locked up in Avalanche’s staking windows and the cost of running hardware is relatively high, making it very costly to launch a new subnet. By building a staking protocol that has decentralized hardware pools, liquid staking, and subnet compatibility, GoGoPool will enable a new wave of subnets to be launched cheaply and easily, putting GoGoPool at the ground floor of a quickly growing Subnet Economy.”
The protocol is backed by a strong technical team that has focused heavily on the needs of the community on the cost and restrictions of staking through subnets on Avalanche.
Framework Ventures is a venture capital firm renowned for its early entry into decentralized finance (DeFi) and blockchain gaming (GameFi).