Decentralized Financing Protocol (DeFi) Notional Finance is the latest to attract large venture capital investments with the announcement of a $ 10 million funding round.
Notional finance announcement the completion of its Series A funding round on April 30, declaring it to be led by Pantera Capital. Other names in crypto venture capital include Parafi, Spartan Group, 1Confirmation, Nascent, and Nima Capital.
The protocol added that it aims to expand what is already possible within the DeFi ecosystem via fixed rates, adding to the widely variable rate lending and borrowing platforms already in operation.
“With the long-term stability that fixed rate borrowing and lending brings, Notional enables fully decentralized and exciting new use cases for DeFi. “
CEO Teddy Woodward said Notional has executed $ 10 million in loans and attracted $ 17 million from TVL since launching in January 2021.
Notional’s model is a fixed-rate loan product on Ethereum that gives users the certainty to plan for the future without depending on well-established and exploitative financial institutions.
“When you introduce the ability to borrow and lend at fixed rates for long periods of time, suddenly you can do more than just trade and speculate. “
Parafi Capital founder Ben Forman noted that fixed rate debt is 25 times larger than variable rate debt in traditional finance, but in DeFi this ratio is reversed.
Users can borrow against their crypto collateral to invest in real world assets and businesses such as businesses, real estate, and even mortgages. At the beginning of February, The Defiant reported this is exactly what an Australian crypto investor did: pay off his mortgage with a loan from Notional Finance, making it a first for the DeFi industry.
The protocol stated that funding will go towards upgrading the platform to version 2 and building the team.
At the beginning of April, Finance element announced the raising of investments of $ 4.4 million for DeFi fixed rate liquidity and yields in a round led by Andreessen Horowitz.
Bumper raises $ 10 million
Another DeFi protocol to announce a $ 10 million funding round this week is Exceptional funding. The protocol acts as a type of insurance against the volatility of the crypto market by allowing users to set a floor price for ETH and not be cashed out like they would with a stop loss.
Investors Alphabit, Autonomy, Beachhead and ChainLayer were among those who participated in the private sale of BUMP tokens which will launch on June 8 with staking incentives.