Alkimiya, a blockchain protocol that aims to provide hedging solutions for blockspace producers like miners and staking validators, raised $7.2 million in a funding round led by 1kx and Castle Island Ventures, which closed in November.

The round also featured participation from Dragonfly, Circle Ventures, and Coinbase Ventures among others.

The funds will be used to expand Alkimiya’s team as it gears up to launch a full product suite, including a Vault product and ETH staking contracts on the Ethereum mainnet in the first quarter of this year.

The company’s mission is to provide hedging solutions for blockspace producers, which are similar to traditional commodity producers, by providing them with means to lock in an upfront fixed return for their future production, enabling them to manage risk and in turn, DeFi users can tap into the value accrued by blockchain producers.