Element Finance strikes gold by raising $32 million for its DeFi fixed rate protocol
The company has been building a new DeFi protocol based on the Ethereum blockchain, which has secured its first round of funding
There have been numerous introductions surrounding the DeFi space and Element Finance is one of them which let you earn predictable returns on investments owing to the fixed rates over a predetermined period of time.
The platform launched its protocol on the Ethereum mainnet and has picked up pace as they have numbers figuring up to $180 million in total value-locked. Users can currently participate in 10 fixed-rate pools and can contribute with stable coins, such as DAI or USDC, and popular cryptocurrencies like wBTC, or with sophisticated derivative assets, such as steCRV, which is a token that represents a stake in the Curve ETH/stETH liquidity pool.
Element Finance has a lot more in store and wants fund managers to invest in an element pool as it has launched a treasury management initiative to convince other DeFi protocol makers, funds and institutions to allocate a portion of their capital to Element Finance.
Furthermore, for guaranteed fixed returns, users can also opt for higher returns. To date around 9,000 users have tried Element Finance as the company plans to introduce a governance system with different voting vaults and different incentives which would prove to be a lucrative proposition for users. With its funding round complete, the company plans to hire people across the globe.
Element Finance also has a feature where users can mint principal and yield tokens from supported underlying assets. Minting these tokens allows users to take one of these variable rates yearn vault positions and split the principal from the yield, resulting in the user being in charge of two tokens. The PT token can be redeemed at face value at the end of the term. The YT tokens are redeemable for the interest accrued over the term, thus representing a tokenized variable rate.
