Quick take:
- Ion Protocol plans to use the fresh capital to build its native yield protocol called Nucleus.
- Nucleus is designed to address rollups and appchain issues related to monetisation.
- The platform gets its yield by securing other platforms like Oracle networks and bridges.
Ion Protocol has secured $4.8 million in a funding round backed by Gumi Capital Cryptos, Robot Ventures, BanklessVC, NGC Ventures, Finality Capital and SevenX Ventures.
Ion Protocol is building a rollups and appchains layer that allows decentralised apps, networks and users to earn yield by depositing any staked or restaked asset.
According to the announcement, Ion gets its yield by securing other platforms like Oracle networks and bridges, which are then passed on to depositors.
The company plans to use the fresh capital to accelerate the development of its native yield platform dubbed Nucleus.
Explaining how Nucleus works, the team told The Block that any network can use the platform to provide its users with native yield for ETH, BTC and USD-backed assets, providing a financial incentive for users to make deposits on the networks.
Commenting on the fundraising Nucleus co-founder Chunda McCain said in a statement: “Participating in the staking and restaking ecosystem to generate yield has become and will only become a more powerful economic incentive for every stakeholder in crypto.”
“Any network unable to provide their users with the option to maximise the value of their bridged assets and bring new sources of revenue to their ecosystem is leaving money on the table. Our plug-and-play platform allows rollups to innovate on their pre-existing business models and ecosystem design while making depositing truly compelling for users.”
Ion Protocol also claims its platform can be used to lend or borrow against any staked or restaked asset with no exposure to price-based liquidation risk. It has built a zero-knowledge machine learning framework, which underwrites the credit risk thus enabling “hyper-efficient loans” with minimal liquidation risk.
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