Aave, the leader of the DeFi protocol, raised $3 million from Framework Ventures and Three Arrows Capital. The investment firms bought $3 million of LEND, Aave’s native token, at $0.10 per token, a stake now worth about $7 million.
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Both firms will take an active role in the growth of Aave’s ecosystem through investment and monitoring with the aim of increasing the user base of the protocol. Aave CEO Stani Kulechov commented on the investment:
„Our focus has always been on innovation and diligent risk management, which has attracted the attention of Framework Ventures and Three Arrows Capital. Their involvement will bring substantial expertise to expand the protocol for institutional use and will be very useful to our community stakeholders.
Framework Ventures is known throughout the DeFi industry and has supported the growth of multiple DeFi companies, including Synthetix, Chainlink and Kava, and is an active investor in helping projects grow.
ParaFi also made a $4.5 million investment in cumulative purchases of LEND tokens.
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The rapid growth of DeFi
In the last two weeks, the total blocked value in Aave has been growing exponentially, from $115 million to $218 million. Users can borrow or deposit a number of stablecoins and major crypto currencies, including Bitcoin (BTC), Ethereum (ETH), Basic Attention Token (BAT) and Chainlink (LINK).
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Defi has seen an increase in public interest following the launch of Compound, which caused the total amount blocked at Defi to rise from $1.08 billion to $2.54 billion in the last 30 days.