The ADA Yield Fund from Wave Financial will help in offering liquidity support to DeFi protocols launching on Cardano thereby boosting the platform’s DeFi ecosystem.
On Wednesday, March 30, Wave Financial, the SEC-regulated crypto company unveiled “Wave ADA Yield Fund” pouring an initial investment amount of $100 million. This new fund seeks to boost the DeFi growth on Cardano by offering liquidity to DeFi protocols on the blockchain.
Wave ADA Yield Fund
It will support decentralized exchanges, stablecoin issuers, and lending protocols building atop the Cardano blockchain. Speaking of this development, David Siemer, CEO of Wave Financial, stated:
“We’re thrilled to continue breaking ground in the field of cryptocurrency through the creation of innovative new funds, and today we are launching what we believe is the first pure liquidity provisioning fund in crypto. Each of these decentralized applications adds to the strong foundation of the Cardano blockchain as it realizes a fully functional and diverse ecosystem.”
The press release explains that global blockchain solutions company EMURGO is the creator of this Wave Fund. EMURGO believes that offering strategic capital resources via the Wave Fund will help projects build-essential DeFi services on Cardano. Thus, it will help to onboard more users to the global Cardano community.
Cardano’s Growing Footprint in the DeFi Space
Last September 2021, Cardano developers made a major push into DeFi with the Alonzo hardfork upgrade. As a result, Cardano has witnessed a steady growth in the number of DApps hosted on the platform.
As per the data provided by DeFiLlama, the total value locked (TVL) on the Cardano blockchain has recently surpassed $300 million. This marks a staggering 39,000% increase in Cardano’s DeFi TVL since the beginning of the year. Some of the top contributors to this growth are MiniSwap, ADAX Pro, MuesliSwap, SundaeSwap, MeowSwap, Meld, and vyFinance. Speaking of the recent funding, Cardano co-founder Charles Hoskinson said:
“Since the formal launch of smart contracts in 2021, the Cardano community has launched and funded hundreds of companies building on the Cardano blockchain. Cardano’s growing ecosystem is hosting an ever expanding universe of applications supporting significant numbers of active users – it’s critical for the success of the ecosystem that Cardano-based projects thrive, and so we are pleased that the ADA Yield Fund is committing substantial financial resources to facilitate continued growth and market acceptance.”
Cardano (ADA) has been one of the top-performing cryptocurrencies last year. Currently, ADA is the world’s seventh-largest cryptocurrency with a market cap of $38 billion.
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