Avalanche Foundation raises $230m to support DeFi
- Smart contracts platform Avalanche recently decided to invest $230 million into the DeFi sector.
- The funds will be distributed through a variety of grants, smaller investments, token purchases, and more.
- The goal is to help DeFi grow and unlock its untapped potential, which is massive despite its growth thus far.
The DeFi sector has been growing rapidly over the past year and a half, and while the crypto community’s interest has been a major factor in driving its development, large investments have had a considerable impact that cannot be ignored.
Take Avalanche (AVAX/USD) as an example. Since its launch a year ago, in September 2020, the project has had a massive influence on the entire DeFi landscape. Since its launch, its smart contract platform has offered infrastructure for nearly 300 major projects, many of which are industry leaders at this point.
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Some of the names that made use of the platform include the likes of Chainlink, SushiSwap, The Graph, and even Circle, among many others. Now, the Avalanche Foundation announced another move that DeFi will greatly benefit from, and it comes in the form of a $230 million large investment.
How will Avalanche deliver the funds?
The money was raised through a private sale of Avalanche’s token. The investment will come from a venture capital group spearheaded by Three Arrows Capital and Polychain, and the goal is to support the growth of DeFi and its constantly growing list of applications created on blockchain technology.
From what is known, the funds will be allocated by the foundation across multiple use-cases within its chain. It will deliver the funds through grants, token purchases, smaller investments, as well as technical support.
The Foundation’s Director, Emin Gun Sirer, said that Avalanche has turned the promise and potential into real-world impact and value creation for DeFi devs and users. According to him, the fact that a community of builders grew and rallied around a network stands as evidence of its competitiveness, even though there is still so much untapped potential waiting to be discovered and utilized.
AVAX, Avalanche’s native crypto, also reflected the project’s success by skyrocketing by 50% over the last seven days. In fact, its performance was surpassed only by two other cryptocurrencies among the top 100 — HBAR and CRV. But, thanks to its market cap hitting $14 billion, the project managed to reach the 13th spot on the list of largestcryptos.