The foundation stated that they will use the funds by supporting and boosting the rapid expansion of DeFi, business applications, and other use cases on the Avalanche public blockchain.
According to Defi Llama statistics, traders have deposited $2.6 billion on Avalanche, making it the sixth-largest network in terms of total value locked (TVL). Three Arrows Capital and Polychain Capital led the fundraising round, which included CMS Holdings and Dragonfly Capital among others.
Avalanche founder and DeFi ecosystem expert Emin Gün Sirer said in an interview that a portion of the assets will be used to inject liquidity directly into Avalanche-based DeFi platforms.
To create something on an Avalanche scale, you frequently need access to huge quantities of money to offer a DEX [decentralized exchange] that works effectively, to provide liquidity pools that provide operations with low costs, and to supply liquidity pools that provide operations with low fees.
The network has a strong concentration on large-scale liquidity. The Avalanche Foundation unveiled an “Avalanche Rush” incentive campaign. Presently, the funds are now being used primarily to encourage user deposits.
Sirer told CoinDesk that the venture capital firms who took part in the round were picked in part for their experience in DeFi markets and market-making.
In the coming weeks, Avalanche will provide additional details on how the funds will be used. Sirer predicts a “busy fall” as protocols and companies announce deployments to the chain.
According to CoinGecko, AVAX, the Avalanche blockchain’s native token, soared on the news, going from $59.19 to $65.08 as of 15:37 UTC. In the previous 24 hours, the token has increased by around 22%.
Image courtesy of Cointelegraph News/YouTube
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