The Solana DeFi project has gained support from a few of the most powerful in the industry.
An announcement today from Exotic Markets indicated that it secured a raise worth $5 million from several distinguished investors and venture capital funds. It plans to fund new structured products to introduce to Solana’s DeFi ecosystem. The backing was settled through a private token sale.
Multicoin, which has invested in projects such as Audius, Arweave, Eden and Solana itself, is among the superior investors behind the funding. Ascensive Assets, another investment firm which has investments in Jenny Metaverse DAO and Yield Guild Games DAO, has backed the raise as well.
Additionally, Solana Capital TPS, Morningstar Ventures, Animoca Brands, and Sam Bankman-Fried’s Alameda Research are some of the other investors as well.
A decentralized platform for Solana, Exotic Markets aims to “bring wealth management and structured products out of the bank and in the decentralized finance world.”
Structured products are pre-packaged investment strategies that can include anything from debt issuance to foreign currencies. These packages of investments may be based on several financial products like stocks or options (derivatives).
Structured products give investors the ability to take on precise risks and yield parameters for a variety of investment strategies. Exotic Markets is on a mission to make it easy for anyone, even those without extensive financial knowhow or experience in this area of trading markets. It was built on Solana for its quick and cheap transactions, says the company.
Oliver Blakey, Ascensive Assets’ Managing Partner, highlighted the utility and significance of structured products for the existence of decentralized finance, permitting “for investors to generate yield denominated in stablecoin rather than governance tokens,” when speaking of the token sale.
Investors have noticed that there are a lot of other platforms building on Solana besides Exotic Markets. By market capitalization, Solana is the fourth largest blockchain at the moment. Beginning in 2021, its token valued below $2, rapidly increasing to roughly $259 on November 5. As of the moment, Solana is trading at $168.
The amount of money flowing into the ecosystem of Solana is one of the causes of its explosive elevation.
For example, co-founder of Reddit Alexis Ohanian’s firm Seven Seven Six collaborated with Solana Ventures in November of 2021 on an initiative worth $100 million centered on decentralized social programs like decentralized social media.
A month after that, the announcement of Solana Venture’s $150 million initiative erupted, backing blockchain-based games. Subsequently followed by another funding initiative valued to nine figures.