The Avalanche Foundation has announced a $230 million investment from a venture capital consortium led by Polychain and Three Arrows Capital to promote the development of the DeFi ecosystem.
Since its introduction in September 2020, Avalanche has grown in prominence in the DeFi space, with its smart contracts platform currently powering over 270 industry applications, including SushiSwap, Chainlink, Circle, and The Graph, to name a few.
The foundation will distribute the $230 million raised through the private sale of its native token across a variety of use-cases on its blockchain, including “grants, token purchases, and various forms of investments and technology support.”
The Avalanche Foundation’s director, Emin Gün Sirer, expressed his thoughts on the platform’s recent improvements and future potential:
“Avalanche has quickly turned promise and potential into real-world impact and value creation for DeFi users and developers. The community of builders rallying around the network is a testament to its competitive edge, and there is still so much potential yet to be tapped at the intersection of institutional and decentralized finance on Avalanche.”
According to CoinMarketCap, Avalanche’s native cryptocurrency token AVAX has increased by 50% this week, trailing just HBAR and CRV in the Top 100 list. With a total market valuation of $14 billion, the blockchain project has a respectable rating of #13.
Aave, a DeFi platform, said yesterday that a community vote would be held to determine whether the “implementation of smart contracts in Avalanche C-Chain and activation of liquidity mining program” would be advantageous to the two ecosystems’ partnership.