Terraform Labs launches a £7.3M fund to foster DeFi integration
- The fund seeks to help DeFi projects gain market access quickly by auditing code.
- Terraform Labs joined hands with Sentnl, Quantstamp, and Solidified to achieve this feat.
- This initiative aims to foster the usage of Terra’s suite of stablecoins, including UST and LUNA.
Terraform Labs (TFL), the organisation responsible for developing the Terra blockchain, has rolled out a new ecosystem development fund entitled Terraform Capital (TFC). A press release unveiled this news on February 4, noting that the company had transferred £7.3 million to the fund. These funds would allegedly serve as capital to facilitate DeFi project audits and help the project founders gain market access quickly.
According to Terraform Labs’ co-founder and CEO, Do Kwon, Terraform Capital’s role is to make strategic investments on behalf of TFL, thus expanding the Terraform ecosystem. He added that the fund would achieve this by channeling resources into promising community projects that add value to the Terra ecosystem.
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Per the press release, TFC’s primary task will be financing audits for projects that seek to secure a grant under its framework. However, projects must adhere to several conditions to qualify for funding. Among these demands is using UST, one of Terra’s stablecoins, or LUNA, the native token of the Terra blockchain, meaningfully. Reportedly, the projects interested in this offer can apply for grants through the Google form on TFC’s website. A dedicated IC committee would then review the applications every two weeks.
Apart from funding audits, TFC will also offer extra resources and guidance, such as monthly evaluations of projects that get the grants. The fund will also provide qualified projects access to TFL’s expertise and connections in the nascent industry. Allegedly, TFC is also working on delivering multiple incentive programs that would reward projects that unlock various milestones.
Teaming up with renowned auditors
According to the news release, Terraform Labs’ inspiration to launch TFC came from FairLaunch Capital’s influx of requests from DeFi-based projects. To this end, TFL joined efforts with a core group of leading auditors to provide exhaustive and swift audits for projects that will apply for TFC grants. At the moment, the organization is working with Sentnl, Quantstamp, and Solidified.
Reportedly, the decision on which auditor handles which project will be based on cost and turnaround times demanded by varying startups. In so doing, TFL believes that the evaluation period would only take two weeks.
Touting the quality services that Quantstamp offers, the firm’s CEO, Richard Ma, said,
In 2020 alone, over 240 million USD worth of digital assets were lost or stolen as a result of DeFi hacks, but no funds have been compromised in code audited by Quantstamp. We look forward to working with Terraform Capital grant recipients to provide them with a secure foundation to build upon.