The crypto market may have been on a downtrend so far in 2022, but there is no slowdown in the massive venture capital cash that is flooding decentralized finance (DeFi) and Web3 projects.
The latest big name for raising big bucks is Electric Capital, which announced a $ 1 billion round of funding on March 1. Large-scale fundraising is aimed at supporting crypto networks, Web3 protocols, and added blockchain-enabled businesses.
Electric Capital is an investment company focused on early startups in the areas of cryptocurrencies and Web3. Its investments include Bitwise, Celo, Dfinity, dYdX, Elrond, Gitcoin, Kraken and Near. The company promises $ 1 to $ 20 million in financial support for programmable funding and the Web3 economy.
5 DeFi concepts to push
March 2, Electric Capital partner Ken Deeter Highlighting Five important areas where the company will invest some of its bumper funds.
The company’s first area of interest is the expansion of decentralized finance (DeFi) in Ethereum’s alternative chains. Ethereum is still a “gold standard”, but Dieter said non-Ethereum chains will be “a more affordable on-ramp for the next wave of users to DeFi.”
Second, Electric Capital invests in bridging yield opportunities across the chain and exploring more ways for users to access yield opportunities across different networks.
We also want to make DeFi much easier by providing a simple exposure to complex strategies.
“A platform that gives users easy access to strategies such as delta-neutral yield farming, leveraged market making, and downside-protected lending.”
The increased liquidity owned by the protocol is “a new battlefield for the DeFi protocol,” Deeter added. The company is interested in a bootstrap mechanism to ensure liquidity with the new protocol.
Payment flow and vesting are the final areas of interest. These include employment contracts, DAO-to-DAO contracts, and loan repayment flows. “Standardized primitives can unlock a whole new segment of the economy,” Dieter said.
New trends
The announcement also highlighted many of the emerging trends in the DeFi sector. DAO will continue to gain momentum, allowing the global community to allocate resources to large and small initiatives.
NFTs (Non-Fungible Tokens) form the “Web3 asset layer and the foundation of new types of financial products,” and DeFi democratizes financial access to them.
Engineers were added before concluding that millions of new users would be onboarded to Web3 as they could build next-generation applications without the single point of failure or control of this new distributed infrastructure. rice field.
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