Institutional DeFi platform dAMM raises $2 million in private token sale round

Institutional DeFi lending platform dAMM Finance has closed a $2 million private token sale round, the company announced.

Round participants include Prismatic, WOO Network, LedgerPrime, Fischer8, Concave, Berachain and System 9, Inc.

“Raising funds during a bear market is quite a difficult task, especially for crypto projects,” said a spokesman for dAMM Finance, calling the raising’s success “proof and proof of that.” [dAMM’s] skills and potential.”

Launched in September, dAMM is an unsecured lending platform for any token with algorithmically determined interest rates. Market makers and investors can borrow money on dAMM from any token with a liquidity pool on the platform, including stablecoins such as USDC, DAI, USDT and LUSD, as well as tokens like GHOSTANGLE, MATIC, ETH and SHORTCUT.

Josh Baker, CEO of dAMM Finance, told Decrypt at the time of launch that the platform aims to list 200 tokens within its first year of operation to address the issue that the majority of on-chain institutional lending platforms are lending only stablecoins. “We’re lending tokens that not even Genesis Trading has ever lent, or Amber,” Baker said. “I don’t think any of the institutional lenders are touching most of the tokens that we want to lend.”

“As an institutional lending platform, the design of dAMM represents a step forward for capital efficiency in the crypto-asset markets and positions the platform to become a core pillar of the DeFi ecosystem,” said Mitchell Nicholson, VP Ecosystem at WOO Network , in an accompanying statement, the news of the salary increase. Nicholson added that WOO Network looks forward to strengthening its partnership with dAMM Finance by “exploring opportunities to come on board as both a borrower and a lender.”

Building an institutional DeFi infrastructure

LedgerPrime CIO Shiliang Tang, whose firm participated in the raise, agreed. “dAMM is building critical infrastructure for institutions to source a variety of tokens that would otherwise be difficult to borrow from the market.”

The platform includes a form of “hybrid centralized-decentralized” model, where dAMM only lends to market-neutral market makers, with all addresses flagged on the platform and know-your-customer (KYC) and know-your-business (KYB ) subject to ) checked. “You can see exactly who your borrowers are, who your counterparty is, in each pool,” Baker said.

The result is ensuring that lenders have visibility into the strategies market makers are pursuing and how much they are allowed to borrow, allowing them to properly assess the level of risk for each borrower.

“We look forward to DAMM developing better mechanisms to verify institutions’ creditworthiness and generate revenue for otherwise idle assets,” said Tang of LedgerPrime.

Speaking to Decrypt, Baker explained that future plans for dAMM Finance include advanced risk management tools. “What we are building right now for the second version of dAMM is that you can choose on a slider what percentage of your loans you want to put under secured lending, over secured lending, log insurance or maybe even an option vault. So basically complete control over your own risk management.”

Sponsored post by dAMM Finance

This sponsored article was created by Decrypt Studio. Learn more about the partnership with Decrypt Studio.

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