The latest decentralized finance (DeFi) protocol to get big backing from venture capitalists is Impossible Finance for a multi-chain incubator project.
In an announcement on June 3, the DeFi protocol declared that it had secured $7 million from over 125 institutional and angel investors. The round was co-led by True Ventures, CMS Holdings, Alameda Research, and Hashed.
The list of additional investors was extensive and included Sino Global Capital, IOSG, Divergence, GBV, Lemniscap, Primitive, Incuba Alpha, BR Capital, Coin98, Ternary Capital, The LAO, Maple Leaf Capital, Longhash, Bitscale, and others. A number of individuals in the DeFi industry also participated in the funding round.
The announcement added that the funding will redefine “launching” for its planned Impossible Decentralized Incubator Access (IDIA) token.
A Binance-esque incubator
Impossible Finance plans to build a multi-chain ecosystem for promoting the growth of DeFi liquidity and composability on Binance Smart Chain. The platform will also support other Ethereum Virtual Machine (EVM) blockchains such as Ethereum and Polygon, which were recently added to Mark Cuban’s portfolio. Further deployments are scheduled for Layer 2 platforms.
There will also be an automated market maker liquidity protocol which acts as the backbone of the ecosystem, it added. This will feature a fully decentralized incubator and launchpad for new projects in DeFi. The offerings appear to be very similar to what Binance already provides, but they aim to be decentralized which Binance is not.
The announcement added that the incubator will be used to offer support and assistance for prospective crypto and DeFi developers.
“The project has been launched by DeFi veterans and avid hackathon participants, including Calvin Chu, formerly of Binance Research.”
Additionally, incubated projects will be able to leverage the protocol’s liquidity and cross-chain support to ensure a successful launch on the market. Expanding on Binance’s BUIDL ethos, Calvin Chu stated:
“The ‘livepaper’ garnered over 400 edits from the top builders and investors in this space, and the Impossible community can’t wait to provide the same type of support to the projects that launch through the Impossible incubator.”
DeFi TVL Update
The DeFi sector has fared better than bitcoin has during this market slump with total value locked falling 35% since its all-time high. Comparatively, bitcoin has plunged 50% during this massive market pullback.
The current TVL as reported by DappRadar is $74 billion. Aave still leading the pack with a market share of 12.7% and $9.5 billion locked up.