- Formation Fi successfully closed an oversubscribed $3.3M funding round.
- The capital will fund the Smart Yield Farming 2.0 protocol.
- Also, Formation Fi is forming a founders club with top DeFi founders.
Formation Fi has closed its successful funding round that raised $3.3 million. The oversubscribed round drew investments from top Decentralized Finance (DeFi) unicorns like Bancor, Synthetix, and Polygon.
At the same time, Formation Fi is in the process of creating a founder’s club consisting of top DeFi founders it wishes to work with long term. Formation Fi’s Co Founder Kristof Gagacki noted,
We are proud to be building on the collective wisdom of some of DeFi’s first pioneers. With our founders’ club approach, we are focused on coming together to build and amplify this still-experimental ecosystem and evangelize Smart Yield Farming into the world of open finance.
Notably, the participating DeFi protocols have a collective total value locked (TVL) of over $6 billion. Other investors include venture capital funds such as Kenetic, Kosmos, Spark Digital Capital, and AU21 among others.
Formation Fi will utilize the fund to build its risk parity protocol, Smart Yield Farming 2.0. The protocol’s risk parity aims to enhance yield farming portfolio construction via risk adjusted cross-chain DeFi asset portfolios. In fact, Smart Yield Farming 2.0 will be the first chain-agnostic, algorithmic yield management platform.
In addition, the protocol will optimize the return-to-risk ratio for each unit of risk, while simplifying DeFi and making it more accessible. To use the platform, users will simply need to deposit their crypto of choice and select an investment style. The protocol supports investment styles in the form of an index coin, for example, Alpha, Beta, Gamma, and Parity.
However, Formation Fi also has a native triple-utility token called $FORM. $FORM grants holders voting rights, a share of the platform’s future net income, and exclusive access to Formation Fi’s Darkpool AMM pools. Also, $FORM can be used in yield farming strategies or added to liquidity pools to enhance yields.
Meanwhile, the DeFi ecosystem has recorded over 2 million unique addresses with a combined TVL of $128,230,991,898 at the time of writing.