We have noticed a sudden rise in the Decentralized Finance or DeFi industry, with the market reaching a total of more than $650 million. The reason behind this sudden boom in the DeFi industry is that many platforms and companies are using the Ethereum network to launch their DeFi protocols.
One such horse in the race is this San Fransico based company called Compound. The company provides an open-source platform for developers to build new financial applications for the community. Some of the examples of the Compound protocol are the Compound Interface itself, Zerion, Coinbase Wallet, DeFi Saver, InstaDapp, etc.
Andreessen Horowitz and early Christmas present worth $25 million
Christmas is around the corner, but it feels like for Compound, it came early. The Ethereum-based developer’s platform company received a funding of $25 million for the California-based venture capital firm, Andreessen Horowitz. The Compound was able to convince the investment firm about the future the DeFi industry holds. The lending-borrowing market has seen significant growth in the past few months as more and more people have entered this field. Blockchain.com unveiled its lending desk on 14th November. Another crypto-broker launched its lending platform called Tagomi.
The founder of Compound, Robert Leshner, stated that the platform has already gained assets valued over $150 million on the lending platform. The current objective of the firm is to make its service available to the mass population, and they are planning to team up with major exchanges to make their service available on a large scale. Leshner also added the company is working in the direction of gaining the attention of crypto-enthusiasts.
They are also aiming to move in the defined decentralized governance region. The general partner at Andreessen Horowitz, Chris Dixon mentioned that the open-lending protocol is open to anyone in the world, allowing people to earn interest on their money by removing banks from the middle. The company works independently, and they cannot enforce any influence on the protocol like other banking set-ups.