Finance element raised a Series A round of $ 32 million at a valuation of $ 320 million. The company has built a new DeFi (decentralized finance) protocol on top of the Ethereum blockchain. It allows you to get predictable returns on investments through fixed rates over a predetermined period of time.
Polychain Capital is leading today’s round table. Other new investors include Republic, Advanced Blockchain, P2P Validator, Rarestone, Ethereal Ventures and their sponsors. Some of the company’s existing investors are re-investing, such as Andreessen Horowitz, Placeholder, A_Capital0 and Scalar Capital. Finally, there is a long list DeFi builders who participated in the round.
Element Finance is still relatively new, as the company launched its protocol on the Ethereum mainnet on June 30. But it has already seen some success as there is currently the equivalent of $ 180 million in total value locked in.
Users can currently participate in 10 fixed rate pools. They can contribute with stablecoins, such as DAI or USDC, with popular (encapsulated) cryptocurrencies, such as wBTC, or with sophisticated derivative assets, such as steCRV – steCRV is a token that represents a stake in the Curve ETH / stETH liquidity pool.
While this is already an interesting product for individual investors, Element Finance also wants to convince fund managers to invest in an Element pool. The company launched a cash management initiative convince other DeFi protocol manufacturers, funds and institutions that they should allocate part of their capital to Element Finance.
In order to guarantee fixed rates, some users may opt for higher returns. They contribute to variable interest liquidity pools. But in this case, you cannot predict your returns at the end of the year.
So far 9,000 users have tried Element Finance. The company plans to introduce a governance system with different voting chambers and different incentives. With today’s funding round, Element Finance will be hiring more people across the board.