DeversiFi, a decentralized finance (DeFi) trading platform, has raised $5 million in a funding round led by ParaFi.
- Defiance Capital, Lightspeed Venture Partners, Blockchain.com Ventures, Delphi Ventures, Fenbushi Capital, OKEx and others also took part, according to an emailed announcement on Tuesday.
- DeversiFi’s aim is to help scale layer 2 trading on the Ethereum network to avoid small and mid-size investors being deterred by high gas fees.
- “Layer 2 scaling is essential to Ethereum’s roadmap,” DeversiFi co-founder Will Harborne said. “We are creating a hub to invest, swap, send and lend tokens without the friction and cost of layer 1.”
- The funding round – where 12.5% of DeversiFi’s new DVF tokens were sold to investors – was also joined by Aave founder Stani Kulechov and privacy software company StarkWare, which powers DeversiFi’s platform.
- Some of the funds will go towards launching the platform's layer 2 automated market maker pools, liquidity mining and new tools, the firm said.
- Last year, the Bitfinex-incubated startup implemented a privacy layer to allow users to protect trading strategies from rivals.
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