DeFi yield optimizer Idle Finance raises $1.2 million in seed funding
The team behind decentralized finance (DeFi) protocol Idle Finance has raised $1.2 million in seed funding.
The round was led by gumi Cryptos Capital, with participation from Quantstamp, BlockRock Capital and Long Hash, among others. With fresh capital at hand, Idle plans to scale its yield optimization protocol with new features.
“We’re looking closely at derivatives and generally all interest-bearing assets, and it might be interesting to create verticals within different markets,” Idle CEO Matteo Pandolfi told The Block. “Other areas we plan to invest in are compliance and ownership experience for our users.”
The Idle protocol has been live since August 2019. It works similar to Yearn Finance, collecting yields from different lending protocols and optimizing for the maximum gain to return it to depositors. Pandolfi told The Block that what makes Idle different from competing protocols is that Idle has multiple features and has been developed with “particular attention to compliance and security, to also reach sophisticated users.”
Idle has been audited by Quantstamp “multiple times,” said Pandolfi, adding: “We developed the Risk-Adjusted strategy, which uses DeFiScore risk assessment framework (developed by ConsenSys) to provide the highest annual percentage yield at the lowest risk level available.”
Idle doesn’t have its own token yet, but the team plans to launch one in the near future, said Pandolfi. “At our token generation event, there will be a form of liquidity mining that will reward initial liquidity providers for the first month,” he said. “We then plan to have other programs based on users’ behavior, with the purpose of incentivizing decentralized ownership and liquidity providing.”
The seed round brings Idle’s total funding to date to $1.3 million. The protocol previously raised $100,000 from ConsenSys Ventures’s accelerator program.
© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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Author: Yogita Khatri