DeversiFi, a layer-2 trading platform powered by StarkWare’s scalable technology, announced today it has closed a $5 million strategic funding round led by ParaFi with participation from Defiance Capital, Lightspeed Venture Partners, Blockchain.com Ventures, Delphi Ventures, and others.
Funds raised from the round will go towards the launch of DeversiFi’s layer-2 AMM pools, liquidity mining, and a suite of other tools designed to make Ethereum-based DeFi more convenient.
DeversiFi launched its purpose-built governance token DVF in March this year, with its overall token distribution heavily geared towards building a strong community that rewards the users of their platform.
ETH has recently surged to all-time highs but the issue of excessive gas fees remains; with the need for more layer-2 solutions to be made available and accessible.
“Layer-2 scaling is essential to Ethereum’s roadmap. We are creating a hub to invest, swap, send, and lend tokens without the friction and cost of layer-1. As more users onboard we see integrations with centralized exchanges as being important to lower the barriers to accessing L2 DeFi,” said Will Harborne, Co-Founder of DeversiFi.
DeversiFi’s funding round also saw participation from Fenbushi Capital, OKEx, StarkWare, Longhash Ventures, and well-known DeFi founders such as Synthetix’s Kain Warwick, Aave’s Stani Kulechov, and Enzyme’s Mona El Isa, among others.
The participation and foray into DeFi of one of the world’s top VC firms Lightspeed Venture Partners, known for their investments in consumer technology companies such as Snapchat, and Nest, shows that interest in the decentralized space is becoming more mainstream.
“DeversiFi has a strong team, early mover advantage with a scaling solution, and a unique aim to bring DeFi to a wider audience. We are excited to partner with them and continue investing in DeFi,” said Amy Wu, Partner at Lightspeed Venture Partners.