Software development company Alluvial has raised $12 million in a Series A funding round to further development of Liquid Collective, a liquid staking protocol. Ethereal Ventures and Variant co-led the fund with participation from Brevan Howard Digital, Avon Ventures, Nascent Capital, a_capital, Robot Ventures, Fenbushi, IOSG and Blockdaemon, among others.

Participation in ETH staking has increased since Ethereum’s Shanghai upgrade unlocked withdrawals of the staked tokens in April, which has increased the queue for staking to weeks. Liquid staking software solutions such as Liquid Collective can eliminate those wait times while boosting liquidity and capital efficiency by allowing users to create on-chain receipts of their positions on proof-of-stake blockchains. Users can use those receipts as collateral or to transfer ownership of the assets.

Launched earlier this year, the decentralized, non-custodial Liquid Collective is focused on compliance, security and performance in order to attract enterprises and institutional stakers. Alluvial offers Liquid Collective through an application programming interface (API) to simplify its integration into digital asset exchanges, custodians and other use cases.

Alluvial previously raised a $6.2 million seed round from strategic participants including Coinbase Ventures, Kraken, Figment and Kiln, according to the company.