DeFi lending protocol Aave has raised $3 million from Framework Ventures and Three Arrows Capital through Aave’s native LEND token sale in place of their upcoming Aavenomics Upgrade.
Both the investment firms had purchased $3 million of LEND at $0.10 per token, a stake now worth around $7 million.
AAVE staking comes alongside with yield farming rewarding from protocol usage, similar to COMP and BAL liquidity mining schemas which have driven exponential growth in recent weeks.
Aave looks forward to working with 3 Arrows Capital and @hiFramework on our path toward decentralization, including new tokenomics, protocol governance, and insurance fund staking to bolster the protocol's strength in the event of deficits. Read more: https://t.co/inLe9XxJDx — Aave (@AaveAave) July 15, 2020
The investment firms will now play an active role into growing Aave’s ecosystem via staking and governance.
Aave CEO Stani Kulechov said on the investment:
“Our focus has always been innovation and diligent risk management, which has got the attention of Framework Ventures and Three Arrows Capital. Their involvement will bring substantial expertise to scale the protocol for institutional usage and they will be helpful stakeholders within our community.”
Investment firm Framework Ventures is well-known known throughout the DeFi industry, helping in the growth of numerous popular DeFi startups such as Synthetix, Chainlink, and Kava and various other DeFi projects.
Moreover, ParaFi and Spencer Noon’s DTC Capital too invested in Aave and accumulated LEND token purchase of $4.5 million.
Aave has been growing exponentially over the last two weeks, rising from $115 million to $218 million.
Its users can borrow or deposit numerous stablecoins including major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Basic Attention Token (BAT), and Chainlink (LINK).
With top-notch firms publicizing their token holdings along with the upcoming Aavenomics Upgrade, it’s clear that the protocol for money market creation has a very bright future ahead.
Source: Cointelegraph | Image: Unsplash