APY.Finance puts DeFi yield farming aggregators on the radar with $3.6m seed funding

APY.Finance puts DeFi yield farming aggregators on the radar with $3.6m seed funding
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APY.Finance, a yield farming aggregator DeFi company, raised $3.6m in its seed funding round. This initial investment round was led by Arrington XRP Capital, Alameda Research, Cluster Capital, and CoinGecko.

Arrington XRP Capital is an American asset management firm in blockchain-based capital markets. 

APY.Finance is en route to creating an investment platform, which will offer several DeFi products to willing investors in a risk-reward optimised manner . These DeFi products are expected to produce yields for investors. 

Will Shahda, CEO of APY.Finance, spoke about the company’s growth, “Yield farming today presents users with a high barrier-to-entry, cost, and risk. APY solves these pain points by giving users a low-cost, frictionless way to pool their liquidity and allocate it across a portfolio of strategies.”

The large seed investment is scheduled to be used for development of the above-mentioned platform, which is expected to hit markets in October, and for audits and risk insurance management.  

How do DeFi products work?

Companies like APY.Finance, which create DeFi services, generate tokens. Consumers then receive incentives to purchase these tokens in order to invest in DeFi projects, and add liquidity to their protocols. This process is referred to as ‘Yield Farming’. 

APY.Finance plans to issue a ‘governance token’ by the same name, APY, in order to make decision making easier for their protocol. The company is also looking at its public offering, an ‘Initial DEX Offering’ (IDO), this month. An IDO is a new fundraising method in crypto space.

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