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Ondo Finance secures $10 million in fundraising by diluting 2% of its total tokens through the public sale. The recent fundraising comes despite a major slowdown in the DeFi market.
Despite the crypto winter, strong DeFi projects continue to make the headlines. On Wednesday, July 6, decentralized finance (DeFi) startup Ondo Finance announced its $10 million fundraising via a public token sale.
Ondo finance conducted its token sale through CoinList on May 12 and 13, just days after the collapse of the Terra ecosystem. But to their surprise, more than 18,000 people bought their native ONDO tokens.
1/ We are excited to announce the sale of ONDO tokens via @CoinList to over 18,000 purchasers. Over $10MM was raised via the sale across two tranches at a weighted average network valuation of $525MM. pic.twitter.com/gSbH2yeWR9
— Ondo Finance (@OndoFinance) July 6, 2022
The Defi startup secured this $10 million funds by offloading just 2% of ONDO’s total supply, as per Ondo Finance co-founder and CEO Nathan Allman. The total supply of ONDO tokens stays at a staggering 10 billion. During the public token sale, the DeFi platform offloaded 525 million tokens, said Allman.
Ondo Finance specializes in offering structure investment products to users. With the recent capital infusion, it plans to continue building its platform by developing new products. Speaking to The Block, Allman said:
“We are focused on creating structured products that use smart contracts to decompose on-chain income streams from token issuers into tranches with different levels of risk, appealing to risk-averse institutions as well as more risk-tolerant retail”.
Offering Structure Investment Products Built Atop DEXs
Two former Goldman Sachs employees, Nathan Allman and Pinku Surana started Ondo Finance last year in 2021. They started with the goal of building structured investment products built atop decentralized exchanges (DEXs).
One of the popular products of Ondo Finance is “vaults” which offer fixed and variable yields. Depositors in the fixed vault receive a fixed percentage of yield over their initial investment. On the other hand, depositors of the variable vaults receive all the excess returns after the fixed yield vaults receive their payout. Allman explained:
“Like a traditional investment bank, Ondo aims to be a hub matching those who have capital with those who need it through the creation of customized financial products that organizations can offer to investors”.
Ondo Finance seems to be doing pretty well currently. The recent fundraise comes despite major turbulence in the DeFi space this year. The recent token sale by Ondo Finance comes two months after the firm raised $20 million in Series A funding from Peter Thiel’s Founders Fund and Pantera Capital. So far, Ondo Finance has raised $34 million through its public token sales.