KeeperDAO Raises Seven-Figure Seed Investment From Polychain, Three Arrows

The funding comes at a time when DeFi has seen an explosion in growth.

AccessTimeIconJul 31, 2020 at 9:24 a.m. UTC
Updated Sep 14, 2021 at 9:38 a.m. UTC

Crypto venture capital firm Polychain Capital and fund manager Three Arrows Capital have backed liquidity protocol KeeperDAO in a seed funding round announced Friday.

  • Polychain and Three Arrows were KeeperDAO's only investors in the round that raised a "seven-figure sum," KeeperDAO founding member Tiantian Kullander told CoinDesk.
  • KeeperDAO is a decentralized finance (DeFi) protocol that lets participants in communal liquidity pools (known as keepers) participate in strategies involving margin trading and lending.
  • Keeper pools are able to combine their capital into Ethereum's smart contracts and profit as a group from on-chain arbitrage and liquidation opportunities.
  • Three Arrows Capital CEO Su Zhu said KeeperDAO would help to keep liquidations on Ethereum "efficient" while making sure participants "earn their keep."
  • Going forward, KeeperDAO plans to issue its own governance token as a tool for balancing incentives between keepers and liquidity providers.
  • Thanks to the project, DeFi protocols based on on margin and borrowing would be able to "lower collateralization levels over time,” according to Sherwin Dowlat, investments at Polychain.
  • Three Arrows recently participated in a $3 million investment in Aave the firm behind the third-largest lending platform in DeFi.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.