Leading DeFi protocol Aave has raised $3 million from Framework Ventures and Three Arrows Capital. The investment firms purchased $3 million of Aave’s native token LEND at $0.10 per token, a stake which is now worth around $7 million.
Both firms will take an active role in growing the Aave ecosystem via staking and governance with a goal to increase the protocol’s user base. Aave CEO Stani Kulechov commented on the investment:
“Our focus has always been innovation and diligent risk management, which has got the attention of Framework Ventures and Three Arrows Capital. Their involvement will bring substantial expertise to scale the protocol for institutional usage and they will be helpful stakeholders within our community.”
Framework Ventures are known throughout the DeFi sector and have supported the growth of multiple DeFi startups including Synthetix, Chainlink and Kava.They are very hands-on investors in terms of helping to grow projects.
ParaFi has also made an investment of $4.5 million in accumulated LEND token purchases.
DeFi is growing fast
Over the last two weeks, the total value locked in aave has been growing exponentially, rising from $115 million to $218 million. Users can borrow or deposit a number of stablecoins and major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Basic Attention Token (BAT), and Chainlink (LINK).
Total value locked in Aave. Source: DeFi Pulse
Defi has seen a spike of interest following the launch of Compound which saw the total amount locked in Defi rise from $1.08 billion to $2.54 billion in the last 30 days.