Solana’s (SOL) DeFi Protocols Raise $40 Million In Q3

DeFi protocols on Solana have attracted notable attention from investors, raising approximately $40 Million in Q3 of 2022.

Two DeFi Protocols Secured the Biggest Funding

Solana Daily has shared the results of Solana DeFi protocol fundraising on Twitter. In total, 6 reviewed projects raised a cumulative $40 Million over three months.

Raising the most over the period was token distribution platform Magna, which closed a $15 million seed round led by venture capital firms Tiger Global and Tusk Venture Partners at a $70 million valuation. Other notable investors in the round included Solana Ventures, Polygon Ventures, Circle, Avalanche Labs, Alchemy Ventures, Galaxy Digital, and Shima Capital.

Magna is developing token distribution software to streamline the difficult-to-automate and error-prone process of sending and receiving tokens on protocols, decentralized autonomous organizations (DAO), and crypto funds.

A second project raking in big gains was Credix, which secured $11.25 million of investment in a Series A funding round led by venture capital firm Motive Partners, and crypto-focused outfit ParaFi Capital.

The Credix platform links credit fintech and non-bank lenders in emerging economies that seek to raise financing through institutional investors, including banks and hedge funds. At the time of writing, the service is only available to entities in Brazil, however, Credix plans to expand its operation to other emerging countries.

Valor Capital, MGG Bayhawk Fund, Victory Park Capital, Circle Ventures, Fuse Capital, and Abra also participated in the Series A funding round.

Up to $5 Million in Funds

The Hubble Protocol was another Solana-based project to raise significant funding over the past three months includes. Hubble completed a $5 million funding round led by Multicoin Capital. The protocol intends to provide a Solana-based alternative to the MakerDao and DeFi protocols utilizing a stablecoin pegged to the dollar.

Decentralized liquidity aggregation protocol for cross-chain swaps Magpie closed a $3 million seed round with investors from GSR Markets, ParaFi Capital, Republic Capital, Big Brain Holdings, Serafund, Faculty Group, Sandeep Nailwal, MH Ventures, D1 Ventures, ArkStream, and Apollo Capital.

Cashmere, a multisig Solana wallet assisting enterprises to manage their digital assets, raised $3 million. Investors in the round included crypto venture-capital firms FBG Capital, and Coinbase Ventures, with additional participation from Project Serum, Volt Capital, CreditEase, Global Founders Capital, and Soma Capital.

Solana-powered lending and borrowing aggregator Everlend secured $2.6 million in a strategic round, and was backed by GCR, the Serum Foundation, Portico VC, and Everstake Capital.

Solana DeFi Protocols Fundraising In Q3 2022

$15M @MagnaTokens
$11.25M @Credix_finance
$5.0M @HubbleProtocol
$3.0M @CashmereWallet
$3.0M @magpieprotocol
$2.6M @EverlendFinance #Solana #DeFi pic.twitter.com/DPsSulA0Kk
— Solana Daily (@solana_daily) October 5, 2022

On the Flipside

Solana’s ecosystem has had a hard time with hacks and network outages, which have decreased the performance of its blockchain.
The most recent Solana outage took place just days ago, on October 1st, when the network went down for several hours.

Why You Should Care

Solana’s ecosystem has recently seen widespread adoption, attracting many NFT and game developers. The pattern can be partially explained by the network’s low-cost transactions and fast processing rates. Indeed, Despite repeated network disruptions, blockchain activity has surged 311%. Institutional investors are therefore looking to secure their part in the further expansion of the blockchain ecosystem.

Learn more about the recent rise of Solana:
Solana (SOL) Is on Fire: This Is What Happened

Read the Solana CEO’s reaction to the network’s outages:
Solana CEO Says Network Outages Have Been The ‘Curse’ Of Low-Cost Transactions

Text source: DailyCoin.com

Altcoin News