Polychain leads DeFi lending protocol Greenwood's $2 million seed round
April 1, 2021, 11:23PM EDT
1 min read
Decentralized finance lending protocol Greenwood has raised $2 million in a seed round led by Polychain Capital in its bid of optimize the interest rates for borrowers.
The firm announced in a post shared with The Block that other participating investors include Blockchain Capital, Robot Ventures and Divergence Ventures.
Greenwood has also got individual contributions from Ricky Li, co-founder of crypto trading firm Altonomy and DeFi lending protocol Aave's founder and CEO Stani Kulechov.
Greenwood's phase 1 of its V2 protocol, which is currently live but not yet audited, touts a set of smart contracts on Ethereum to borrow from Aave or Compound, based on whichever protocol has the lowest instantaneous annual percentage rate.
The goal is let users and dApps borrow crypto assets through DeFi at the lowest interest rate without doing the calculation of interest rates themselves.
Nathaniel Mendoza, CEO of Greenwood, said with the newly raised capital, the firm also plans to hire additional staff to help build out the next three phases of its V2 protocol.
"Some phases will port traditional financial tools to Ethereum, while others will introduce novel functionality that is only possible on-chain," the firm said in the announcement.