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Steve Muchoki
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Decentralized lending protocol built on L2s ZeroLend has announced a successful closure of the seed funding round with $3 million. According to the announcement, ZeroLend now has a total valuation of around $25 million. The just concluded seed funding round included several venture capital firms and angel investors seeking to capitalize on the growing lending market in the Web3 sector.
Some of the notable angel investors who participated in ZeroLend’s seed funding round include Curve Finance, Nick Rose the founder and CEO of Ethernity, and Alpha Protocol Ventures, among many others. As for the private investors, ZeroLend received strategic funding from Blockchain Founder Fund, Momentum 6, Moningster Ventures, Newman Capital, Banter Capital, Cypher Capital Group, and Ozuru Ventures, among many others.
The web3 company managed to raise the seed funding round amid the ongoing crypto awakening and mainstream adoption of decentralized finance (DeFi) platforms. As a result, ZeroLend announced that it is focused on growing its web3 lending markets to more layer two chains.
“Funds raised will play a pivotal role in growing ZeroLend’s outreach and TVL. With the added network advantage of our investors and angels, we are set to prosper into one of the largest DeFi lending markets,” ZeroLend noted.
ZeroLend and the Market Outlook
ZeroLend has established its Web3 lending business over the past years despite the palpable devastation of the 2022/2023 crypto bear market. With more than $86 million already borrowed from ZeroLend, the protocol has grown to over $49 million in Total Value Locked (TVL).
The ZeroLend protocol has registered notable growth to more than 238k in Unique Active Addresses, according to market data provided by DefiLlama.
Based on Aave V3 and powered by Pyth and Chainlink, the ZeroLend protocol has recorded astronomical growth on its TVL in the past two months from about $1 million last December.
As a result, the web3 lending protocol has convinced more investors that its business model will run it through the next crypto cycle, including bear markets. Furthermore, several crypto lending businesses collapsed at the height of the 2022/2023 crypto winter.
Meanwhile, ZeroLend is preparing to launch its native token dubbed ZERO to ensure a sustainable future. Notably, ZeroLend intends to conduct a series of airdrops under the Zero Gravity Campaign in a bid to enable further decentralization with the governance token.
“As an early investor, I’m impressed by ZeroLend’s substantial growth and its strategic initiatives like the Zero Gravity campaign and integrations with key partners. I see great potential for ZeroLend to continue its trajectory, becoming a significant player in DeFi across various Layer 2 solutions,” Danilo Carlucci from Morningstar Ventures noted.
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