ParaFi Invests and Begins Staking in Bitfinex Spin-Out Exchange

ParaFi and D1 have invested a total of $450,000 into Bitfinex spin-out DeversiFi and will now play a governance role in the project's DAO.

AccessTimeIconAug 7, 2020 at 1:35 p.m. UTC
Updated Sep 14, 2021 at 9:41 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

DeFi-focused fund ParaFi Capital has invested $450,000 in USDT, along with D1 Ventures, and will start staking on Ethereum-based exchange DeversiFi.

  • DeversiFi announced Friday that ParaFi and D1 had together invested $450,000, in tether tokens, in return for governance token nectar (NEC).
  • San Francisco-based ParaFi's portfolio includes other DeFi projects such as Aave, Curve, MakerDAO and Kyber Network, into which ParaFi invested in June.
  • D1 Ventures' previous investments include The Graph, Thorchain, Tellor and Nest Protocol.
  • Formerly Ethfinex, DeversiFi is a non-custodial exchange spun out of Bitfinex in 2019 and that re-released its trading platform with a newly built privacy layer earlier this year.
  • The exchange acts as a hybrid where trades are executed off-chain and settled on-chain in batches every hour; this means DeversiFi can settle 9,000 transactions every second.
  • ParaFi and D1 have committed to staking tokens in the platform's governance protocol necDAO, so they'll be able to play a role in the project's direction as they would with an equity stake.
  • DeversiFi co-founder Ross Middleton says there is currently 17,000 ether (around $6.7 million) pledged to the necDAO, most being trading fees collected from when it was Ethfinex.
  • Both funds will have a role in determining how these funds are spent – one current proposal is using ETH to connect necDAO to liquidity pools and allow it to earn a passive income.


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

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.