Advanced Blockchain Invests in Fixed-Rate Income Protocol, Element Finance
Advanced Blockchain’s subsidiary was one of the largest investors into this promising protocol, which will also be receiving unique support from our organization: we will integrate it into a number of our other incubated projects, as well as incorporate it into our “Ecosystem-as-a-service” model.
Advanced Blockchain AG has invested via a subsidiary into Element Finance, an open source protocol for fixed and variable yield markets in decentralized finance (DeFi). This investment will allow us to support Element with our incubation services, while also strengthening the growing Advanced Blockchain portfolio of investments.
Advanced Blockchain was one of the largest investors in Element’s Series A funding round.
Element Finance recently closed their Series A by successfully raising $32 million at a $320 million valuation. Advanced Blockchain AG invested a 7 figure amount into this round, positioning Advanced Blockchain AG as one of the largest investors participating. The Series A was led by a16z (Andreessen Horowitz) and Polychain Capital. Angel investors included Rune Christensen of MakerDAO; Stani Kulechov, the founder of Aave; Fernando Martinelli, the founder of Balancer; Santiago Santos, and many other prominent investors in the DeFi and blockchain industries.
This investment will be mutually beneficial for Element Finance and Advanced Blockchain.
DeFi-based fixed rate instruments are still in their nascent stages, yet will ultimately prove to be an integral asset class within the burgeoning DeFi ecosystem. Given the Element Finance team’s pedigree, proven ability to execute, and strong base of supporters, it is clear no team is better positioned to herald in new asset constructs into DeFi. Thus, we believe that Element Finance will be a strong investment for our organization.
In addition to our investment via a subsidiary into Element, we are excited to provide unique value to the Element Finance team by integrating the team into our “Ecosystem-as-a-Service” (EaaS) model. Through this system, we plan on building products on top of the Element Finance software development kit (SDK). In addition, we plan to integrate Element Finance into numerous portfolio and incubated companies, catalyzing growth and expansion across Advanced Blockchain AG’s portfolio.
More about Element Finance:
The Element Protocol maximizes capital efficiency, creates market liquidity, and reduces user costs. Users can purchase BTC, ETH, and USDC at a discount through automated market makers (AMMs) without being locked into a fixed term. This allows swaps to consistently occur between the discounted asset and any other base asset. With the exchange of any major base asset, a fixed-rate income is secured. For active DeFi users, the Element Protocol enables capital efficiency on active yield positions such as Yearn or ETH2 staking. Users can sell their deposited principal for a discount as a fixed yield income to leverage or increase exposure without liquidation risk. More information about Element Finance and its protocol can be found on the Element Finance website.
Further information about Advanced Blockchain AG and its various projects and investments can be found on its website, https://www.advancedblockchain.com/.