Alluvial, the developer of liquid staking protocol Liquid Collective, has raised USD 12 million in Series A funding co-led by Ethereal Ventures and Variant, with participation from Brevan Howard Digital, Avon Ventures, Nascent Capital, a_capital, Robot Ventures, and Fenbushi, among others. This round brings the company's total funding to over USD 18 million.

Alluvial offers its Liquid Collective platform as an application programming interface (API) for enterprises and institutional clients to integrate it into their digital asset exchanges and DeFi protocols. The platform enables users to tokenize their staked positions on proof-of-stake blockchains and use them as collateral for loans or to transfer ownership.

Analyst Quicktake: Liquid staking on Ethereum has seen a growing investor interest in the last month with a number of startups raising funding. These include Asymmetry Finance , which raised USD 3 million , and Maverick Protocol , which raised USD 9 million . This trend follows Ethereum’s Shanghai upgrade, which enabled users to withdraw staked assets from the network in April. The update led to increased demand for staking Ethereum, which is now nearing a major milestone of having nearly 20% of its total supply (23.9 million out of 120 million ETH) locked up in staking contracts.