Unbound Finance, a DeFi treasury for liquidity pool tokens, has secured $5.8 million from various prominent crypto investors including Arrington XRP Capital and Pantera Capital among others. The funding pool is meant to further Unbound’s goal of becoming the first decentralized cross-chain stablecoin.
The unbound protocol was developed to offer leverage to idle liquidity in the wallets of AMM (automated market maker) liquidity providers. Additionally, the platform aims at creating products that are capital efficient, native, and compatible with the DeFi space.
Currently, the treasury lends its users zero-interest loans, with liquidity pool tokens as collateral. The platform is also building judicious partnerships with public blockchains compatible with Ethereum virtual machines (EVM) such as Binance Smart Chain, Harmony, and Polygon. This will enable the development of native bridges to allow cross-chain transfer of its synthetic assets including its native stablecoin $UND. The partnership will also extend support to include AMMs like PancakeSwap, SeeSwap, DFYN, and others.
Tarun Jaswani, CEO and founder of Unbound Finance stated:
“AMMs are DeFi’s ‘Zero to One’ Innovation and we are building the aggregator layer to enable greater yields and capital efficiency for our users.”
A host of other prime venture capitalists are backing the DeFi project, including CMS Holdings, LedgerPrime, Hashed, LD Capital, ArkStream Capital, and TRGC. More of these investors are ZeePrime Capital, Brilliance Ventures, Future Perfect Ventures, GenBlock Digital, Coin98 Ventures, Woodstock, to mention a few.
“Unbound has great potential to play a lead role in the DeFi space by focusing on liquidity pool tokens. We’re excited to support the Unbound team as they build the key tools to capitalize upon this untouched part of the DeFi ecosystem,” said Dan Morehead, CEO of Pantera Capital.
Michael Arrington from TechCrunch voiced similar sentiments saying:
“Unbound Finance is the new primitive with the potential to unlock billions in unproductive value trapped in AMMs. We’re excited about the launch of Unbound as a fundamentally new mechanism for borrowing, lending, and synthetic assets in DeFi.”
The project’s objectives and prospects have also attracted a cluster of angel investors. Among these are founders of Enjin, Angelist, Gnosis, Polygon, Kyber Network, Harmony, Wikihow, Dao-Maker, DFYN, Frontier, Polkastarter, TomoChain, and many more.
Sandeep Nailwal, COO and co-founder of Polygon stated that Unbound’s devoted team had built something that would make all AMMs efficient. More so, their creation would further compelling money legos in the blockchain. Enjin’s CEO and co-founder, Maxim Blagiv also spoke saying:
“We are delighted to support Team Unbound in realizing its vision of becoming the native decentralized stablecoin of the DeFi & AMM space.”
Unbound’s treasury first went live on Ethereum in December last year with its initial testnet. Later on in April this year, it launched the final testnet. Presently, it supports AMMs like Uniswap, Sushiswap, MooniSwap, and Balancer.
The platform is also among the first to integrate Uniswap V3 and it is concentrating liquidity provision by launching aggregator contracts. The contracts will collateralize NFT positions, further enabling UND liquidity.
Funds acquired from the latest investment round will be utilized in team expansion, adoption, audits, provision of liquidity and R&D on AMM space. It will also fuel upcoming initiatives such as Uniswap V3 aggregation contracts.