VCs back Balancer protocol with $24.25M investment
The funds will be used to strengthen Balancer’s role as a core infrastructure provider of the DeFi market.
The round was led by Blockchain Capital, Fintech Collective, LongHash Ventures, Fenbushi Capital, Continue Capital, and Kain Warwick, the founder of DeFi protocol Synthetix.
“By allowing for the most flexible and composable liquidity pools in the AMM space, the Balancer Protocol is uniquely positioned as a core infrastructure component for decentralized finance protocols and applications,” said Aleks Larsen, an investor with Blockchain Capital, adding:
“We see this aspect of the technology in Balancer as a strong long-term indicator, as protocols that are widely embedded in higher level systems are able to drive powerful network effects and defensive moats.”
Last November, Alameda Capital and Pantera Capital threw their weight behind the DeFi project. In March of this year, Three Arrows Capital and DeFiance Capital led a $5 million raise for the company. Thus, Balancer has a history of attracting funding from leading VC firms.
There has been remarkable buzz around Balancer of starting a new bullish phase for the project. Although much of that bullish outlook has subsidized in the wake of last week’s market cycle correction. The native BAL token is down 17% over the past week.
Balancer is aiming to become the leading source of liquidity in the DeFi market. The team has emphasized on driving adoption in the Asia Pacific region, which could emerge as a hotbed for decentralized finance products.
In the hope of the project will grow, several high-profile investors within the cryptocurrency industry have purchased $24.25 million in Balancer tokens in a coordinated move to springboard adoption of the automated market maker.