Money Market Platform Burrow Raises $5M to Launch on NEAR

Burrow is a non-custodial liquidity pool platform similar to Aave and Compound.

By Sam Reynolds

Mar 30, 2022 at 2:00 p.m. UTC

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The NEAR protocol has a new money market platform with the launch of Burrow, which announced a $5 million raise backed by Dragonfly Capital, ParaFi Capital, Jump Crypto, QCP Capital and others on Wednesday.

Burrow is a non-custodial liquidity pool platform that functions as a decentralized money market, allowing users to supply and borrow assets for trading.
It comes as NEAR and a slew of next-gen blockchains look to stand up vibrant decentralized finance (DeFi) ecosystems – often with the help of hefty incentive programs.
Other investors in the Burrow round include Lemniscap, Mentha Partners, Warburg Serres Investments, DeFi Capital, D1 Ventures, GFS Ventures, SevenX Ventures and Metaweb Ventures.
The platform will use the funds to bootstrap its initial trading liquidity.
Given its use of the NEAR blockchain, Burrow says it will have “near-zero transaction costs” and fast transaction closing time, solving two complaints that many users have when trading on other blockchains.
"We believe decentralized money markets act as a cornerstone for DeFi given their composability and utility," Anjan Vinod, Vice President at ParaFi Capital, said in a note to CoinDesk. "By building natively on NEAR, we believe Burrow can integrate with other NEAR-native DeFi primitives including DEXs, liquid staking solutions, and stablecoins."
Burrow currently supports NEAR, DAI, USDT, USDC, ETH and wBTC for deposits and wrapped assets like stNEAR, stETH, stSOL and stFTM for staking.
Burrow says that it will launch a governance token staking program in its second month. If users stake the native BRRR token, they will receive xBRRR which allows them to vote on DAO governance proposals.

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Sam Reynolds

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