Home CryptoNews DeFi DeFi Lending Platform Aave Raises $3 Million Through Its LEND Token Sale

DeFi Lending Platform Aave Raises $3 Million Through Its LEND Token Sale

London-based DeFi platform Aave has raised $3 million from Three Arrows Capital and Framework Ventures through its LEND token sale.

Aave announced the news in a blog post published on Wednesday, July 15. According to the announcement, Framework Ventures and Three Arrows Capital have purchased around 30 million of Aave’s native token, LEND, at $0.10 apiece. Given the current price of the token, both firms now hold over $7M worth of LEND tokens. Another investment fund ParaFi also holds around $4.5 million worth of LEND.

Aave said that the investment would fuel its mission to create global permissionless tokenized assets money markets, and both investors would work actively with Aave in growing the Aave ecosystem via staking and governance to increase the protocol’s user base.

Aave is Ethereum-based lending and non-custodial protocol enabling the creation of money markets. The company’s future plans include a governance system, introduction of Credit Delegation policy, and an Insurance Fund. The protocol will also be migrated to AAVE from LEND. Staking, liquidity providing rewards, and a new smart contract will follow.

aave

Stani Kulechov, CEO of Aave, commented:

“Aave Protocol has grown substantially since the beginning of the year when we launched. Our focus has always been innovation and diligent risk management, which has got the attention of Framework Ventures and Three Arrows Capital. Their involvement will bring substantial expertise to scale the protocol for institutional usage and they will be helpful stakeholders within our community.”

Three Arrows Capital, established in 2012, is a Singapore-based investor and liquidity providers in the DeFi ecosystem. The firm said:

“DeFi is strongest when it is built by the community for the community with pragmatism and composability. We have been impressed by Aave and are excited to bring our knowledge of the institutional borrow and lending space to work on further growing the decentralized money markets at Aave.”

Framework Ventures, founded in 2018, is a crypto venture firm that partners with founders and teams to build token-based networks and develop the requisite crypto-economics, governance, and community to scale. Michael Anderson, the partner at Framework Ventures, stated:

“We believe there will be a significant market shift of private borrow/lend activity moving to decentralized money market protocols. Aave stands to significantly benefit from this underlying shift by enabling more assets as collateral, continuing to innovate with new lending features such as credit delegation, and partnering with other DeFi protocols, ultimately fostering a community-first approach.”


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Atiq Ur Rehman
Atiq Ur Rehman
Electronics Engineer with a passion to write about Disrupting Technologies like Blockchain. He joined Crypto-Economy in July 2019.
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