DWF Labs unveils a 75M DeFi-specific fund dedicated to promoting projects developing on-chain financial systems.
The company announced the program on November 26 and stated that the program will be the foundation of the next step of decentralized finance when institutional activity expands.
Fund focuses on the infrastructure of DeFi
DWF Labs indicated that the fund will give preference to teams developing dark pool perpetual DEXs, decentralized money markets, and yield-bearing asset products. The program will back up projects running in Ethereum, BNB Chain, Solana, and Base. The company feels that the potential in these areas is high with the growth in the demand for scalable DeFi tools.
The company is interested in collaborating with teams with an existing MVP and a clearly defined value proposition. It desires founders who will resolve actual issues in liquidity, settlement, lending, and on-chain risk management. The company indicated that it is not going to support initiatives that have little change to the current protocols.
Managing Partner Andrei Grachev stated that DeFi is entering the institutional stage. He observed that there was an increase in the demand for systems that safeguard the flow of orders and provide a sustainable yield. He also added that the fund will support founders who will be able to create infrastructure with concrete applications.
Portfolio teams receive support from an ecosystem
DWF Labs claimed that financing will be accompanied by practical assistance and direct contact for the provision of liquidity. Go-to-market planning and operational execution will also be assisted with the portfolio projects. The company will reach out to approved teams to market makers, infrastructural alliances, and institutional investors.
Marketing and communications were also promised by the investment company. According to Grachev, the founders will have an advantage in a market where distribution and liquidity are important. He further explained that visibility and user growth are still the main problems facing new DeFi projects.
DeFi gains momentum with institutional adoption
According to on-chain data at DeFiLlama, the total value locked in all DeFi protocols stands at 121.194 billion, a 2.67% increase from the previous day. The market capitalization of stablecoins is 305.356 billion. DEXs handle $10.739 billion in daily volume. Perpetual products realize $41.394 billion in 24 hours. The highest value of DeFi TVL was approximately 177.5 billion in the 2021 cycle. It almost reached that level once again in the past month, just before the market shock of October 10.
Industry representatives believe that this trend will persist. Co-founder of Chainlink Sergey Nazarov claimed the sector of DeFi is approximately thirty percent to mainstream adoption. He anticipates it to be adopted by the whole world by 2030. According to him, regulation will lead to the next wave of participation. He explained that when infrastructure is made more efficient, institutions will invest in meaningful capital.
According to Nazarov, there has been institutional participation in Web3. He referred to the SmartCon sessions, which were centered on enterprise use cases. He predicts that regulatory transparency will grow beyond the United States as more areas match the market in the United States.
DWF Labs anticipates that the new fund would expedite the creation of superior DeFi systems. The company believes that strong construction and rising institutional demand will drive the next level of open financial markets.
