Injective Labs confirmed launching a $150 million fund targeting to foster developers’ efforts within the Cosmos Network. Injective chief executive Eric Chen lauded the resilience portrayed by DeFi in becoming a reliable option for clients following the CeFi collapse witnessed in 2022.
Assembling Consortium of Investors
Established in 2018, the layer-1 blockchain protocol revealed the backing of various venture capital and Web3 companies. In particular, the round attracted the participation of Gate Labs, Delphi Labs, Pantera Capital, Kucoin Ventures, Flow Traders, Kraken Ventures and IDG Capital. The official appreciated the input of the various venture capitals in what was the largest consortium ever assembled on the Cosmos ecosystem.
Chen explained that developers participating in the fund are set to receive support either via equity investments or bespoke tokens. Also, the developers would leverage technical assistance, marketing and mentorship services.
Prioritizing DeFi and Interoperable Infrastructure
The chief executive stated that the fund would prioritize projects oriented to decentralized finance and the development of interoperability infrastructure. Besides scalability solutions, a portion of the funds would facilitate projects on trading platforms and proof-of-stake infrastructure.
Also read:The Injective Labs’ co-founder declared that the ecosystem initiatives would allocate funds relative to the project fit rather than becoming stringent on funding numbers. Chen emphasized that the initiative is targeting projects within the early stage, whether seeking seed to Series B funding.
Nevertheless, the Injective CEO admitted that the initiative would consider follow-on funding on a case-by-case basis. He clarified that the size of funding would vary relative to the stage and project’s needs. Additionally, Injective would allocate support resources necessary for the project’s success.
Suitability of Cosmos Development Kit
Chen demonstrated that Injective Protocol involves decentralized smart contracts established via Cosmos SDK. The preference for Cosmos development kit arises from its capability to promote cost-effective and faster infrastructure as opposed to Ethereum. In addition, the Cosmos kit offers customizable options while supporting horizontal scalability to rival blockchains without compromising versatility.
DeFi has been behind prominent projects since it entered the discourse during the crypto bull of 2020. While DeFi activity slowed in 2022, it has portrayed immunity from challenges that plagued centralized finance (CeFi) platforms.
Chen attributed the popularity of DeFi protocols emerging from entrenching transparency and funds ownership. He explained that DeFi guaranteeing funds ownership yields the advantage over CeFi.
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