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Barely months apart from its previous seed funding round, Apricot Finance has just announced another successful completion of a funding round that saw the decentralized money market platform collect $4million from investors.
This adds to Apricot Finance’s $800,000 round of funding that happened in June as the company plans to launch its platform’s revamped testnet next week. In the coming weeks, h, Apricot Finance is set to launch its mainnet.
The $4 million funding round saw the participation of multiple investors and veteran crypto advisors. The list includes Delphi Ventures, Lemniscap, Solana Capital, Advanced Blockchain AG, Skyvision Capital, CryptoJ, Struck Capital Crypto, Bixin, Ledger Prime, Valhalla Capital, MXC, Gate, a41 Ventures, Komorebi DAO, GSR, Solar Eco Fund, Coinsight Ventures, Global Coin Ventures, Smrti Lab, Darren Lau, Zhuoxun Yin, Jeff Kuan (Terra), Matt Cantieri (Anchor Protocol), Nick Tong (Perpetual Protocol) to mention a few.
Apricot Finance has been on a winning streak lately, even garnering first place position to become the winner of the Solana Season Hackathon. Solana is a blockchain designed for building scalable and fast-performing decentralized applications such as Apricot Finance. The Solana Season Hackathon is a competition organized by the Solana team to evaluate the viability of decentralized projects that launch on Solana.
Now driven by the two successful rounds, not to mention the recognition that comes with winning the Solana Season Hackathon, Apricot Finance is now set for its next phase of growth and advancement, which includes expanding its team and capabilities to better serve its growing market of platform users.
What is Apricot Finance?
Apricot Finance is quickly becoming the go-to platform for decentralized finance solutions. Built on the Solana blockchain, Apricot is a next-generation lending protocol that offers cross-margin leveraged yield farming that enables platform users to maximize returns from their DeFi loans with minimal downside using self-deleveraging mechanisms.
DeFi applications such as Apricot are designed to give users access to crypto loans based on collateral submitted to their platform. As the decentralized finance movement continues picking up speed, multiple platforms for borrowing, lending, and yield farming have emerged to help crypto enthusiasts make the best of the lucrative opportunities that exist in the space.
However, existing DeFi lending and borrowing solutions also come with high-risk levels that compromise a user’s capital. In addition to the risk of faulty smart contracts, DeFi platforms also have high collateralization requirements, sometimes going as high as 150% collateral, and often only accept selected crypto assets as collateral. What’s more, users who borrow from DeFi lending platforms often do so at the risk of having their collateral position liquidated should the crypto asset they have collateralized plummet in value.
Other additional risks include the lack of insurance. Unlike traditional banking, DeFi loans are unregulated, and there is no insurance on the capital used on most DeFi applications. Granted, DeFi loans come with collateral provided; however, borrowers cannot be held accountable should they default on their loans.
The Apricot Finance solution
Despite the many existing challenges in the DeFi space at the moment, Apricot Finance is built on the belief that the future is bright for decentralized finance. For this reason, Apricot Finance brings about a sustainable solution for bad debt accumulation on lending platforms with the launch of its debut products called“Apricot Lend”, “X-Farm” and “Apricot Assist”
Among which, X-Farm is a first-in-market cross-margin yield farming service. It allows users to deposit volatile assets such as SOL, BTC and ETH to borrow stable coins, and perform leveraged yield farming without the hassle of converting assets to stable coins on their own, thus maximizing the capital efficiency and best protecting users’ underlying assets.
In the DeFi space, liquidation only occurs when the value of collateral submitted to a lending protocol falls below the threshold set by that protocol. As cryptocurrencies and digital assets have volatile price movements, this presents a huge risk to borrowers on DeFi lending protocols.
Apricot Assist, however, will help users automatically deleverage their portfolio when their collateral ratio falls below a pre-configured level, users will be able to earn magnified returns without the fear of getting liquidated due to market volatilities.
Conclusion: Apricot Finance’s Upcoming products
As it seems, Apricot Finance is just getting started, and the Apricot Lend, X-Farm and Assist are the first suites of products to emerge from this money market platform. Apricot Finance now joins the ranks of other borrowing and lending protocols, competing with the likes of Compound to offer access to capital for DeFi enthusiasts.
Going forward, Apricot Finance plans to launch a rich set of related products. As the platform expands, it will tap into the concept of securitization in traditional finance to help manage a bad debt collateral pool accumulated through Apricot’s 2-hour liquidation guarantee program, and many other innovative solutions.