Staking, DeFi, new projects every day or so… Among the successful projects of the moment in the cryptosphere, Avalanche (AVAX) is clearly pulling its weight. So much so that institutional investors seem to be literally scrambling to fund the project!
A flood of new money for Avalanche’s DeFi (AVAX)
As recently as the end of August, the Avalanche Foundation was strongly encouraging the development of its decentralized finance ecosystem (DeFi), by offering a total of $180 million in AVAX liquidity mining rewards to its users.
But this September 16, another very good news came for Avalanche’s DeFi. Indeed, the project team announced that several investment funds, led by Polychain Capital and Three Arrows Capital, have invested a total of $230 million in Avalanche’s development.
The Avalanche Foundation explains that it will use the funds, to “support and accelerate the rapid growth of DeFi, enterprise applications” on its Avalanche public blockchain.
“Although it is several years younger than its peers, the Avalanche blockchain has quickly turned promise and potential into real impact and value creation for DeFi users and developers (…) The community of builders rallying around the network is a testament to its competitive advantage, and there is still so much potential to tap into the intersection of institutional and decentralized finance on Avalanche.”Emin Gün Sirer, director of the Avalanche Foundation
AVAX in full development, a simple warm-up?
Indeed, although the main Avalanche network was launched just one year ago, in September 2020, the path taken is already impressive.
In addition to already surpassing 1,000 validator nodes, which enable staking of AVAX tokens, more than 270 projects have been built or adapted on Avalanche, such as DEX SushiSwap, Tether’s USDT stablecoin, Chainlink’s oracles, or The Graph’s blockchain search engine.
“We are pleased to support Avalanche as the platform continues to grow its vibrant community of open source developers (…) We look forward to seeing the next generation of applications launched on the platform.”Olaf Carlson-Wee, founder and CEO of Polychain Capital.
Among these promising applications, the DeFi Trader Joe protocol is full of promise, including a future decentralized lending platform that wants to compete with Aave and other industry tenors. With the current windfall of new money being added to the project, the future looks bright for Avalanche.