A relatively new DeFi protocol, Alchemix has announced a $4.9 million raise that featured some heavy participation from established VC firms. The young platform joins a growing list of blockchain-based projects and startups that are raising funds in a more atypical manner from mainstream investment entities.
Alchemix has enrolled an enviable list of investors led by renowned venture capital firms with the inclusion of other interesting upstart players. The fast raising DeFi lending protocol announced on their Discord channel that they had secured the funds from ten investors. These include CMS Holdings, Alameda Research, Immutable Capital, Nascent, Protoscale Capital, LedgerPrime, Fisher8 Capital, Orthogonal Trading, eGirl Capital and an unidentified individual investor.
Exiting news! The Alchemix team has successfully raised funds with amazing and exciting partners. Read the discord announcement here or in this exceedingly large screenshot.https://t.co/iKov18CZBS pic.twitter.com/fB2REerYmr
— Alchemix (@AlchemixFi) March 13, 2021
The project becomes the latest in a series of exciting projects in the DeFi sector that have secured funding from the mainstream financial markets over the past few months. The growing interest in DeFi platforms from such traditional investors is increasingly serving as proof of the sector’s potential. The influx of these investment firms also showcases the changing outlook of the crypto space from the mainstream financial markets as more institutions are venturing into the space to exploit arising opportunities. Alchemix is such an interesting proposition with its revolutionary lending protocol that automatically repays user’s loans using their deposits into other yield-bearing protocols.
The Ethereum-based protocol is an ideal example of new revolutionary platforms that are being referred to as the second generation of DeFi. These young platforms are deploying novel approaches to outperform their predecessors in the wider market.
Alchemix is on the forefront of this movement as it remains focused on delivering highly lucrative products in the DeFi sector. Scoopy Trooples, the project’s team leader reiterated their focus in the announcement post saying:
Alchemix aims to be one of the key money legos in the Ethereum ecosystem. It is the culmination of countless innovators and one great idea and a lot of hard work from our team. We are excited to have the backing of a plethora of reputable investment firms. With their support we can charge ahead full time and make Alchemix even better.
The investors that participated in the raise spoke highly of Alchemix citing their huge potential in the rapidly growing market segment. These sentiments are aptly expressed by CL, a partner at e-Girl Capital who said:
Personally I think the team is extreme capable, very bullish on the project as record amounts of stablecoins continue to be printed daily and flow into DeFi protocols, and the idea of immediately being able to spend future yield is very powerful.
The investment will help accelerate the platform’s development over the next one year with funds allocated to hiring, marketing, contractors and community building.
Image courtesy of Pixabay
<!– [if gte mso 9]>
Don’t worry, we hate spam too
one weekly digest, just the important stuff.
How about some social? Follow us on Twitter!