Recently, the Avalanche Foundation announced a $230 million raise to support and accelerate the rapid growth of DeFi, enterprise applications, and other use cases on the Avalanche public blockchain.
Three Arrows Capital and Polychain Capital led the funding round, with participation from R/Crypto Fund, CMS Holdings, Dragonfly, Collab+Currency, Lvna Capital and a group of angel investors. According to Avalanche, a lump of the funds will be used to inject liquidity directly into Avalanche-based DeFi platforms.
Avalanche said that support for Defi projects will include grants, token purchases, and diverse forms of investments and technology support.
Source: Avalanche
Since its inception in September 2020, Avalanche ecosystems have grown very fast in blockchain. The foundation now has more than 270 projects building on the platform, including top-tier DeFi projects like Tether, Chainlink, Circle, SushiSwap, and The Graph, as well as over a thousand validator nodes staking tokens.
Avalanche said that it is the fastest smart contracts platform in the blockchain industry, as measured by time-to-finality and that any smart contract-enabled application deployed on Avalanche can outperform its competition.
Kyle Davies, Chairman, at Three Arrows Capital, said "Avalanche has found a product-market fit for what DeFi users want today, while also building for where the space is moving with custom blockchains on the platform,"
Large-scale liquidity is a key focus for Avalanche. Just two weeks ago the Foundation announced a $180M "Avalanche Rush" incentive program. Presently, that funds is above all being used to incentivize user deposits.
"The scalability and throughput of the Avalanche network, made possible thanks to its revolutionary consensus protocol, will underpin equitable financial systems in the future and use cases not realizable to date. It will be exciting to see what developers, encouraged by the ecosystem fund, can build,” noted, Allan Cassis, Founder & CEO of Lvna Capital.
Avalanche said that it enables individuals and enterprises to easily create powerful, reliable, and secure private or public networks with full control over their usage. These “Subnets” can be the bedrock for the creation of new ecosystems of value in asset tokenization and regulated institutional use cases.
Avalanche said that soon it will release more specifics of how the funds will be used.