Element Finance raises $ 32 million for its DeFi fixed rate protocol


Element Finance raised a Series A round of $ 32 million at a valuation of $ 320 million. The company has built a new DeFi (decentralized finance) protocol on top of the Ethereum blockchain. It allows you to get predictable returns on investments through fixed rates over a predetermined period of time.

Polychain Capital is leading today’s round table. Other new investors include Republic, Advanced Blockchain, P2P Validator, Rarestone, Ethereal Ventures and their sponsors. Some of the company’s existing investors are re-investing, such as Andreessen Horowitz, Placeholder, A_Capital and Scalar Capital. Finally, there is a long list of DeFi builders who participated in the round.

Element Finance is still relatively new as the company launched its protocol on the Ethereum mainnet on June 30. But it has already seen some success as there is currently the equivalent of $ 180 million in total value locked down.

Users can currently participate in ten different fixed rate pools. They can contribute with stablecoins, such as DAI or USDC, with popular (encapsulated) cryptocurrencies, such as wBTC, or with sophisticated derivative assets, such as steCRV – steCRV is a token that represents a stake in the pool liquidity Curve ETH / stETH.

While this is already an interesting product for individual investors, Element Finance also wants to convince fund managers to invest in an Element pool. The company has launched a cash management initiative to convince other DeFi protocol manufacturers, funds and institutions that they should allocate some of their capital to Element Finance.

In order to guarantee fixed rates, some users may opt for higher returns. They contribute to variable interest liquidity pools. But in this case, you cannot predict your returns at the end of the year.

So far 9,000 users have tried Element Finance. The company plans to introduce a governance system with different voting chambers and different incentives. With today’s funding round, Element Finance will be hiring more people across the board.

Image credits: Finance element

About Sherri Flowers

Check Also

Management of small hive beetles in honey bee colonies

Small hive beetles (Aethina tumida) can cause significant damage in commercial honey bee colonies in …

Leave a Reply

Your email address will not be published.