Institutional DeFi lending platform dAMM Finance has completed a $2 million private token sale, the company has announced.
Round participants include Prismatic, WOO Network, LedgerPrime, Fischer8, Concave, Berachain and System 9, Inc.
“Raising funds during a bear market is quite a difficult task, especially for crypto projects,” a dAMM Finance spokesperson said, calling the The success of the capital raise is “evidence and demonstration of [dAMM]’s capabilities and potential.”
Launched in September, dAMM is a decentralized lending platform for any token with an algorithmically determined interest rate. Market makers and investors can borrow on dAMM from any liquid token on the platform, including stablecoins such as USDC, DAI, USDT and LUSD, as well as tokens notifications like AAVE, ANGLE, MATIC, ETH and LINK.
dAMM Lending Platform Brings Transparency to Institutional DeFi
dAMM Finance CEO Josh Baker told Decrypt at the time of launch that the platform aims to have 200 tokens listed in its first year of operation, addressing the issue that the majority of platforms On-chain institutional lending platform that only lends stablecoins. “We are lending tokens that even Genesis Trading has never lent, or Amber,” said Baker. “I don’t believe any lending institution is touching most of the tokens we intend to lend out.”
Mitchell Nicholson, VP Ecosystem at WOO Network, said: “As an institutional lending platform, dAMM’s design represents a step forward in capital efficiency in the crypto asset market and platform positioning. this to develop into a core pillar of the DeFi ecosystem.” news about salary increase. Nicholson added that WOO Network is looking forward to strengthening its partnership with dAMM Finance by “exploring opportunities to engage both as a borrower and as a lender.”
Building Institutional DeFi Infrastructure
LedgerPrime CEO Shiliang Tang, whose company participated in the bull run, agreed. “dAMM is building critical infrastructure for institutions to be able to generate a wide range of tokens that would otherwise be difficult to borrow from the market.”
The platform includes a form of “combined decentralized-centralized” model where the dAMM lends only to market-neutral market makers, with all addresses on the platform labeled and depending on your customer (KYC) and know your business (KYB) check. “You can see exactly who your borrower is, who your counterparty is in every group,” says Baker.
The result is to ensure that lenders have insight into the strategies market makers are pursuing and how much they are allowed to borrow, allowing them to properly assess the level of risk to each person. borrow.
“We look forward to seeing the DAMM build better mechanisms to verify the creditworthiness of institutions and generate returns on idle assets,” said LedgerPrime’s Tang.
Speaking to Decrypt, Baker explained that future plans for dAMM Finance include advanced risk management tools. “What we’re building right now for dAMM version two is, you can choose on the slider what percentage of your loans you want to move to in the form of mortgage loans, mortgage loans. collateral, protocol insurance, maybe even an options store. So basically in total control of your own risk management.”