As the decentralized finance movement proves its resilience and resilience, Bitdao, one of the world’s largest decentralized autonomous organizations, has completed a private fundraising round to promote the mass adoption of Open Finance.
DAO will provide capital to improve defi-R&D, funding and liquidity
With decentralized funding (defi) slowly gaining a foothold after the total value plummeted in May, there is no shortage of investment capital chasing after the enormous potential of the idea.
Bitdao, a decentralized autonomous organization focused on defi, launches after successfully closing a $ 230 million private funding round. More than 20 institutions and defi partners took part in the private capital increase, including hedge fund manager Alan Howard, well-known entrepreneur Peter Thiel, Dragonfly Capital, Fenbushi, Founders Fund, Jump Capital, Pantera Capital and Spartan Group.
In order to solve the persistent throughput problems of the Bitcoin network and the high transaction costs of Ethereum, Bitdao’s multichain design intends to replace existing centralized tokens that pose censorship and counterparty risks with a fast and inexpensive decentralized solution. The organization’s native BDAO governance and defi token is tied to the value of Bitcoin, with plans to introduce more pegs for coins like Ethereum in the future.
The fresh capital is allocated to multiple business areas, including research and development, finance, and liquidity operations. Attracting developer talent is one of the main goals of this initiative, and capital is also distributed in the form of grants and token swaps to support blockchain technologies. In addition, contributions to the Bitdao Treasury Department will be used to assist partners in increasing liquidity and booting new protocols in decentralized exchanges (Dex) platforms, lending and synthetic products.
Besides this funding Bybit, one of Bitdao’s ardent supporters, has pledged 2.5 basis points out of the total volume of futures transactions on its platform to provide recurring support to the Treasury Department. Based on the platform’s transaction volume in 2021, that number could reach $ 1 billion annually, which will help underpin Bitdao’s mission to improve adoption, collaboration and innovation in decentralized finance as much as possible.
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