Aave Protocol Raises $25m From Investors to Develop DeFi Products
Aave protocol has raised $25 million from investors as it seeks to continue developing DeFi projects.
Funds were raised from three investment firms.
Aave revealed on Twitter that the DeFi protocol had successfully secured funding from three firms. Blockchain.com Ventures, Blockchain Capital, and Standard Crypto were the firms that partook in the latest funding round, which raised $25million.
Blockchain.com ventures are the investment body of popular crypto wallet provider Blockchain.com, and its investment in Aave shows the potentials within the DeFi protocol.
Aave intends to use the new funds towards developing DeFi projects and expanding its existing teams. The new shareholder entities will also partake in the staking and governance of the protocol. Stand Kulechov, CEO of Aave, believes that the latest investment round would help the DeFi platform grow in Asia.
“Aave has raised funds from strategic investors in order to bring DeFi closer to institutional use and to expand the size of the team to serve the growth of Asian markets,”
Aave had earlier in July secured $7.5 million in funding from investment funds.
A project on the rise
Aave is one of the most popular DeFi protocol and has seen its value surge in recent months. The Defi protocol is regarded highly from the fundamental point of view and its token LEND. Earlier in October, Aave protocol began a token migration phase from LEND to a new token AAVE.
AAVE token will allow the community partakes in the governance of future developments of the protocol, focusing on decentralization.
Aave has also recently taken steps within the finance sector, obtaining a license to establish electronic money in the UK. The authorization gives Aave the ability to offer payment services like Coinbase and Revolut.
To sum it up, Aave protocol is, without doubt, one of the promising DeFi projects. The deployment of AAVE token and additional fundraising bodes well for the AAVE ecosystem. The Aave team still has a lot to offer the project community, and the AAVE token could once again climb the ranks within the crypto market.
Aave is the 3rd largest protocol with a total value locked (TVL) of $1.16 billion.