Crypto Venture Capitals Contributes $32 Million To DeFi Protocol Element Finance Initiative

In a fundraising round headed by blockchain investment company , the lending system Element Finance announced on October 19 that it had received a total of $32 million investment fund.

, a venture capital company focused on technology, has also increased its investment in this round after .

Other participants in the round included venture capital organisations such as Republic Capital, Advanced Blockchain Capital, and Rarestone, as well as individual investors from companies such as , , , UMA, and many other cryptocurrency ventures.

The DeFi , which was introduced on June 30 by Element Finance, allows users to buy cryptocurrencies such as Bitcoin and Ethereum at a discounted rate, according to the company.

About Lending Protocol & Element Finance

The fact that are primarily determined by demand means that the rates may, and often do, fluctuate dramatically throughout the course of a user’s ownership of a specific cryptocurrency.

However, this is countered by protocols such as Element Finance, which trade cryptocurrency assets at a ‘discount’ until they reach maturity.

It is usually possible for users to keep their cryptocurrencies for a certain length of time, called the . If they do not sell the discounted token within a time frame, they will lose the opportunity to get a discount during the exchange transaction.

They may also sell it at any time before the maturity date, however the farther away the token is from its maturity date, the greater the discount it will get. In either event, they will still be able to reap the benefits of their yield crypto or digital token investments.

The Element Finance lending protocol also makes it possible for developers to create on top of its open-source foundation.

Promising Significant Growth In The Future

Element Finance has seen rapid growth over the past four months. According to , the total value locked (TVL) on Element Finance has already reached a record high which is more than $165 million. In addition, it currently has nearly 10,000 active users.

It is anticipated that the fund collected via this new financing round would be used to grow the Element Finance team in a number of important areas, including the engineering, research, user interface, and design departments, among others.

, co-founder and CEO of Polychain Capital, has stated that Element Finance may be “a revolutionary financial primitive that has rapidly become a cornerstone of DeFi” and he believes it will soon be a fundamental component of our worldwide financial infrastructure.

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