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Institutional-grade liquidity network Alkemi is joining hands with the crypto exchange Nexus Market to offer its users decentralized finance (DeFi) yields through its CeFi-based vaults. The collaboration will enable Nexus users to access DeFi liquidity in a trusted counterparty environment.
Alkemi Teams Up With Nexus Market to Give Its User Enhanced DeFi Yields
The partnership between Nexus and Alkemi will allow the former’s users to put their crypto holdings to work to generate passive income. To obtain this benefit, Nexus users can commit their Ethereum, Wrapped Bitcoin, and other stablecoin investments to any of the decentralized finance vaults integrated with Alkemi.
Furthermore, Nexus customers can also participate in an institution-grade liquidity mining program through the network to earn DeFi rates.
Normally, crypto users need to learn about Web3 wallets, proper custody, gas prices, approvals, and many other complicated terms to tap into DeFi yields. Alkemi aims to solve this problem by developing a bridge to these yields, while simultaneously maintaining a familiar and easy-to-understand Web 2 interface that could potentially attract more users.
Both the companies have emphasized the importance of trust in their new initiative and maintained a compliant environment between them. This is to ensure an additional safeguard for institutions and retailers lending their assets and earning yields both on-chain and off-chain.
An Overview of the Alkemi Network
Founded in 2018, Alkemi is the world’s first decentralized liquidity network with institutional DeFi support. The firm aims to bridge the gap between traditional finance and decentralized finance, by bringing CeFi institutions into the DeFi space. Its flagship protocol Alkemi Earn (Earn) provides know-your-customer and anti-money laundering compliant non-custodial borrowing and lending services to investors through a primary ‘permissioned’ liquidity pool of digital assets.
In 2021, Alkemi went live on the mainnet after raising $4.6 million in an investment round. The company is backed by some leading investors including Outlier Ventures, Techstars, ConsenSys Mesh, and LedgerPrime.