DeFi security provider Sherlock aims to raise $100 million in token round

Quick take

• Protocol security solution Sherlock wants to expand its investor pool beyond VCs and angels.
• This follows similar token-based rounds, such as the recent $ 1 billion raised by the Luna Foundation Guard.

Startup Sherlock, which promises to protect crypto projects from smart contract hacking, aims to raise $ 100 million in a public funding round next week.

According to the announcement, the project will open a six-day funding window at 4:00 pm (UTC) on March 7. This follows the previous $ 30 million guarded launch in the whitelisted round.

Sherlock is a protocol security solution. It connects crypto projects with external audit firms and Sherlock’s own security team called Watsons, providing tools to cover bug exploits and bounties with smart contracts.

Sherlock token rounds work on a first-come, first-served basis. The USDC total will be split between the Sherlock Staking Pool and the Sherlock Treasury, with 90% allocated to the former. Six months later, the staking pool funds will be awarded one SHER token for every 10 USDC of staking. The remaining 10% of USDC is locked to Sherlock’s finances and cannot be returned to investors.

According to the protocol, this token-based round will not only allow venture capitalists and angel investors to participate in the governance of the Sherlock system, but in theory anyone will be able to invest in Sherlock. As long as the user has a Wallet Connect compatible wallet and at least $ 250 of ETH as a spare, the user can participate in the round. However, the specific individuals and investment companies that may invest in the round have not yet been announced.

Financing follows the spread of similar token-based rounds. For example, the non-profit Luna Foundation Guard raised $ 1 billion last month by selling its native token LUNA in a round led by Jump Crypto and Three Arrows Capital.

Sherlock did not immediately reply to a request from The Block for funding details.

© 2022 The Block Crypto, Inc. all rights reserved. This article is provided for informational purposes only. It is not intended to be provided or used as legal, tax, investment, financial, or other advice.