DeFi oracle protocol Lithium raises $5 million, led by Pantera and Hashed

advertisement

Lithium Finance has raised $5 million in a founding round led by Pantera Capital and Korean blockchain VC Hashed to build a decentralized data oracle protocol for pricing private assets.

The startup said in a statement on Tuesday that other investors who have backed the round included Alameda Research, Huobi Ventures' Blockchain Fund, OKEx's Blockdream Ventures, NGC, LongHash and Genesis Block.

Founded earlier this year, the team behind Lithium touts a plan to build a "collective-intelligence pricing oracle" specifically for relatively illiquid assets such as private equity, pre-IPO stocks. The goal is to have a blockchain-based protocol that can accurately value assets, benefitting other decentralized finance protocols and traders. 

"Bringing non-public valuation data to make it accessible will be a paradigm shift. It will enable tremendous growth and innovation at Trad-Fi and DeFi's interface and pull the two worlds closer than ever," added Adrian Lai, CEO of Liquefy Labs. He added that the initial roadmap is to launch the testnet in Q3 and mainnet by the end of the year.

According to the release, the protocol works by rewarding analysts who provide accurate pricing information and punishing those who put forward inaccurate data.

Lithium Finance is the third project incubated by Liquefy Labs, a DeFi arm under Hong Kong-based investment firm Liquefy. It will initially be used to support Linear Finance, which is also incubated by Liquefy and has raised $1.8 million to build a decentralized synthetic asset exchange protocol.

"Bringing real-world assets into the DeFi space is the final frontier of crypto," said Steve Derezinski, co-Founder of Lithium Finance. "However, this can’t be realized without the right pricing oracle, and the market still hasn’t seen one that’s able to price illiquid real-world assets effectively."

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC
More