Paradigm and CMS Holdings were among the investors in the protocol, which aims to make fixed rate loans a building block for DeFi. close
Loan and Loan History Yield announced yesterday that it raised $ 10 million in a Series A funding round. Paradigm, which had previously provided seed investment and incubation to Yield, led the round with the support of new investors such as CMS Holdings, Framework Ventures, Variant, Symbolic Capital Partners, and the DeFi Alliance.
Launched in October 2020, Yield is an Ethereum protocol that provides decentralized finance (DeFi) term loans with fixed rate and interest rate markets. Users can post collateral to create fyTokens or “Fixed Yield Tokens” that are settled based on the value of a target asset on a specific date in the future.
The Yield team believes that a strong DeFi rollout will require fixed rate borrowing as DeFi will be in a better position to compete with the traditional financial sector when users have greater confidence in savings and returns Borrowing costs have been offered as fixed rate loans and borrowing.
The upcoming launch of Version 2 of the Yield Protocol later this year will benefit from Yield’s new partners and capital. Version 2 will include some important changes as new types of loanable and secured assets allow new use cases for the protocol, which will also be composable and gas efficient.
Following the success of a Maker Improvement Proposal earlier this year, Yield Protocol and MakerDAO will launch the first fixed rate integration of DeFi.
In the past, Dai has sometimes traded above its target price of $ 1 as the maker community struggled to manage the supply and demand of the stablecoin. Yield will introduce a new maker module called Term Lending Module to which fyDai holders can sell their tokens at a price based on the target price.
In addition to providing new tools for managing the Dai connectivity, Yield Protocol believes that the introduction of Dai tokenized fixed-rate, fixed-term loans to MakerDAO will fuel the continued adoption of Dai and provide MakerDAO with a new, stable source for Will generate credit income.
Paradigm manager Dan Robinson said on Twitter yesterday: “Allan [Niemerg, Yield Founder] did an incredible job with @acuestacanada building the Yield Protocol [Yield Technical Lead] and the rest of the @ yield team. Our partnership has resulted in some dope research, and I’m even more excited about what’s to come. “