Overview
- Galaxy and Sharplink agreed Monday to set up a $125 million on-chain yield fund, with $100 million from Sharplink’s staked ETH and $25 million from Galaxy in a non-binding deal.
- Galaxy will choose DeFi lending and liquidity venues to seek returns higher than 2.5%–3.5% staking yields while keeping Sharplink’s ETH exposure intact.
- Sharplink reported first-quarter revenue of $12.1 million but a net loss of $685.6 million, largely from $506.7 million in unrealized markdowns on its Ethereum holdings.
- Sharplink held 872,984 ETH as of May 4, so the planned allocation equals about 43,000 ETH and represents a small portion of its treasury.
- The launch still depends on final documents and operational checks, a caution reinforced by April hacks at Drift and Kelp DAO that spread risk into lending markets like Aave.