Helix Labs secures $2M in pre-seed funding to tap into $12B Cardano liquidity

Helix Labs, a blockchain-focused startup, has raised $2 million in a pre-seed funding round, bringing its valuation to $40 million.

The funding was led by Tribe Capital, EMURGO Ventures, Taureon Capital, LD Capital, and Double Peak Group as per a company press release.

The company aims to unlock Cardano's liquidity for decentralized finance (DeFi), providing Cardano (ADA) holders the ability to stake their tokens without losing access to them for other financial uses.

This development could open up approximately $12 billion worth of ADA liquidity that was previously inaccessible in the DeFi ecosystem.

Helix Labs targets untapped ADA liquidity

Helix Labs’ protocol allows Cardano holders to stake their ADA tokens while retaining the flexibility to use them in DeFi activities. Normally, staking cryptocurrency involves locking it up to support the network, meaning users cannot utilize their tokens for other purposes.

Helix Labs’ technology introduces a “liquid staked ADA” token that users receive after staking their assets. This token can be deployed across DeFi platforms, enabling activities such as lending, trading, and liquidity provision, which were previously not available to ADA stakers.

The Cardano ecosystem holds approximately $12 billion worth of liquidity, which has largely remained untapped within the DeFi landscape.

The company is part of Movement Labs’ Move Collective accelerator program, which aims to expand Cardano's DeFi capabilities.

Through this partnership, Helix Labs hopes to integrate Cardano liquidity into broader financial systems, making DeFi more accessible for ADA holders.

What are Helix Labs' products?

Helix Labs offers three main products designed to cater to blockchain users.

The first, Helix Vault, integrates staking protocols from multiple blockchains, including Cardano, allowing users to maximize their asset earnings.

The second, UniRollup L2 platform, facilitates the interaction of liquid-staked ADA with various DeFi protocols, making it easier for users to engage in financial activities.

Finally, the OmniVM AVS product supports new projects by providing liquidity and assistance for emerging Layer-3 ecosystems, helping to launch and develop blockchain initiatives.

Cardano's liquidity enters the DeFi space

The entry of Cardano liquidity into the DeFi sector represents a significant milestone for the ecosystem.

Cardano, which has a market capitalization of approximately $12 billion, has lagged in DeFi adoption compared to other blockchains like Ethereum.

Helix Labs aims to close that gap, offering ADA holders more flexibility and opportunities to earn rewards while keeping their assets active in the broader DeFi space.

The introduction of Helix Labs’ products is expected to accelerate the adoption of Cardano within the DeFi ecosystem.

With the support of leading investors and its inclusion in the Move Collective accelerator program, Helix Labs is well-positioned to advance its technology and expand its influence within the blockchain space.

By offering solutions that increase liquidity and provide ADA holders with new opportunities, Helix Labs is creating a more efficient and versatile financial ecosystem for Cardano users.