The year started on an amplified note for the decentralized finance (DeFi) ecosystem as Ref Finance just raised $4.8 million in a funding round. Ref Finance announced the funding round yesterday and affirmed that a lot of investors backed the startup in the funding round.
The fundraiser was spearheaded by Jump Crypto in partnership with major DeFi influencers like OxMaki, Cao Yin and organizations like Dragonfly Capital, OKX BlockDream Ventures, Alameda Research, SevenX Ventures, Woo Network, D1 Ventures, and many others
Ref Finance is a huge compilation of DeFi protocols that is sponsored by the NEAR contract. It has a core objective of compiling all of DeFi’s key elements like lending protocols, decentralized exchange (DEX), and synthetic assets issuer. Ref Finance facilitates investment and earning by contributing liquidity in the future.
Ref Finance, presently performing as an automated market maker (AMM) algorithm, is already placing itself deliberately for an aggressive market push on decentralized finance and as a core NEAR ecosystem enabler. Ref is doing this to stand a chance to raise funds with some of the decent players in the market.
Ref Finance is also functioning as a Stableswap marketplace to swap stablecoin and serves as a DeFi one-stop store to the NEAR ecosystem. It is the enabler to most of the projects on NEAR to create better liquidity.
AMMs are an important factor for the utilization of DeFi such as Uniswap. The users are allowed to contribute liquidity as an exchange while also receiving a fraction of the transaction fees in the form of tokens.
Why the Funding Round?
AMMs will work in a completely decentralized manner while contributing hitch-free trades between digital assets. According to Bowen Shen, co-founder of Ref Finance coordinator group, Proximity Lab, the fund raised will be utilized to broaden the team to enhance the continuity of creating products and services that belong to DeFi.
He mentioned that investors in this funding round are some of the most credible in the DeFi industry. All of these investors have track records of credibility and transparency, their massive years of involvement and calculated positioning in the industry were considered as they play a crucial part in the raise.
Separately, Sequoia Capital recently launched a sector-specific fund worth about $600 million. The funding round was targeted towards restructuring crypto-inclined startups and redefining the role of venture capital in its portfolio. It is not clear at the time of writing whether Sequoia Capital has its interest in investing in Ref Finance at this time.