DeversiFi raises USD5m in strategic round led by ParaFi
DeversiFi, a Layer 2 Decentralised Finance (DeFi) trading platform powered by StarkWare’s scalable technology, has closed a USD5 million strategic funding round led by ParaFi with participation from Defiance Capital, Lightspeed Venture Partners, Blockchain.com Ventures, Delphi Ventures and others, to scale DeFi trading on Ethereum.
The round saw 12.5 per cent of DeversiFi’s new DVF tokens sold to long term supporters of the project, including some of the top investors in the industry.
“Layer 2 scaling is essential to Ethereum’s roadmap. We are creating a hub to invest, swap, send, and lend tokens without the friction and cost of Layer 1. As more users onboard we see integrations with centralised exchanges as being important to lower the barriers to accessing L2 DeFi,” says Will Harborne, Co-Founder of DeversiFi.
DeversiFi’s funding round also saw participation from Fenbushi Capital, OKEx, StarkWare, Longhash Ventures, and well-known DeFi founders such as Synthetix’s Kain Warwick, Aave’s Stani Kulechov and Enzyme’s Mona El Isa, among others.
“DeversiFi brings to life a high performance DeFi trading experience without paying high gas fees. Ethereum and DeFi are graduating from dial-up to broadband with L2s this year and DeversiFi is at the forefront of this transition that, ultimately, realises the promise of why DeFi will eat CeFi: faster, better, and cheaper," says Santiago R Santos, Partner at ParaFi Capital.
The participation and foray into DeFi of one of the world’s top VC firms Lightspeed Venture Partners, known for their investments in consumer technology companies such as Snapchat, and Nest, shows that interest in the decentralised space is becoming more mainstream.
"DeversiFi has a strong team, early mover advantage with a scaling solution, and a unique aim to bring DeFi to a wider audience. We are excited to partner with them and continue investing in DeFi,” says Amy Wu, Partner at Lightspeed Venture Partners.
Thanks to the growth and popularity of DeFi and NFTs, ETH has surged to an all time high this month, but the issue of exorbitant gas fees remains, with the need for more layer 2 solutions to be made available and accessible, particularly to small and mid-size investors.
Funds raised from the round will go towards the launch of DeversiFi’s layer-2 AMM pools, liquidity mining, and a suite of other unparalleled tools designed to make DeFi more accessible to the mainstream.
DeversiFi launched their purpose-built governance token DVF in March this year, with its overall token distribution heavily geared towards building a strong community that rewards the users of their platform.
This is why 50 per cent of the supply will be distributed to the community via liquidity mining, or via another method chosen by governance proposals, in addition to several other airdrops.
The project saw a 133 per cent per month active organic user growth in April this year.