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The latest funding to Alchemix will help its developers to commit to full-time developments. Besides, it will help the DeFi protocol to boost its other activities of hiring and marketing.
Decentralized Finance (DeFi) lending protocol Alchemix recently completed its $4.9 million funding round. The official announcement was done through Alchemix’s Discord channel on Sunday, March 14.
Exiting news! The Alchemix team has successfully raised funds with amazing and exciting partners. Read the discord announcement here or in this exceedingly large screenshot.https://t.co/iKov18CZBS pic.twitter.com/fB2REerYmr
— Alchemix (@AlchemixFi) March 13, 2021
The recent funding also includes participation from some of the biggest venture capital platforms. Thus, it includes names like Alameda Research, CMS Holdings, as well as some upstart VC players like eGirl Capital.
DeFi lending protocol Alchemix specializes in offering loans that automatically repay themselves into yield-bonding protocols via deposits. The announcement also reads that the investors purchased Alchemix’s native ALCX tokens at the price of $700 per token.
Part of the proceeds also went to Alechimex’s founders in the form of their work compensation. This was the protocol’s first fundraiser ever and previous work happened without any compensation. Alchemix further added that the fundraiser will allow the founders to commit themselves to full-time development. Also, the capital will be useful for other activities like audits, hiring contractors, marketing, and community efforts.
However, as per the terms of the fundraiser, the founders can’t sell any of their holdings this year. Similarly, the funding group has been prohibited from selling its purchases for the next three months. Scoopy Trooples, team lead at Alchemix said:
“Alchemix aims to be one of the key money legos in the Ethereum ecosystem. It is the culmination of countless innovators and one great idea and a lot of hard work from our team. […] We are excited to have the backing of a plethora of reputable investment firms. With their support we can charge ahead full time and make Alchemix even better.”
Alchemix: The Gen 2 of DeFi
The decentralized finance (DeFi) landscape has been evolving faster than expected. Different lending protocols have provided a solid backdrop for transforming the traditional financial systems. Projects like Alchemix represent the Generation 2 protocols in the fastly emerging DeFi marketplace. Speaking about the potential of this project, CL, a partner at e-Girl Capital, spoke:
“Personally I think the team is extreme capable, very bullish on the project as record amounts of stablecoins continue to be printed daily and flow into DeFi protocols, and the idea of immediately being able to spend future yield is very powerful”.
The latest fundraiser by Alechemix marks a new beginning of some of the established players and new crypto VC startups coming together for making investments in the DeFi space.