Root Protocol based on hacked Beanstalk service raises $9M
- July 26, 2022
- 0
Root Protocol, the marketplace project for financial markets, forecasting and trading, raised $9 million during its seed round. 1/ We are excited to announce a $9M Seed Round
Root Protocol, the marketplace project for financial markets, forecasting and trading, raised $9 million during its seed round.
1/ We are excited to announce a $9M Seed Round for Root Protocol.
• @Yolkapitalmgmt
• @NimaKapital
• @Soma_Kapitaland Manifest Crypto among other leading crypto-domestic investors. pic.twitter.com/hOPowhWARu
— Root (@root_protocol) 26 July 2022
Road Capital, Nima Capital, Soma Capital, Manifest Crypto and other investors participated.
Root is built on top of the Beanstalk stablecoin protocol, which lost approximately $181 million in a control system hack in April.
“Frankly, this is very unfortunate. Root founder Part Patel said in a comment to The Block, I think there are many lessons to be learned about on-chain governance, which is far from what it should be.
Beanstalk is issuing a leveraged “stablecoin” Bean. Investors buy the protocol’s interest-bearing debt.
The root team is looking to expand the use of the coin with new markets such as interest rate swaps for returns or betting platforms.
Funds raised will mainly be used by the project for direct investments in Beanstalk and audit of its own protocol.
The Bean issuer plans to relaunch on August 6. Root developers expect to launch their products in October.
Patel says that as a “credit-based stablecoin,” Bean was not designed to be pegged to the dollar. According to him, in this case it is better to abandon the term “stablecoin”.
“I think I would call the coin a non-convertible token with low volatility – algorithmic stablecoin has become a trigger word these days and I don’t blame people,” Patel said.
Recall that in the second quarter, the volume of venture finance in the sector decreased by 31% compared to January-March, reaching $6.76 billion.
Experts have found an explanation for this in the crash of Terra, the serious problems of Celsius and Babel Finance, as well as waves of staff reductions from Coinbase, Gemini and Crypto.com.
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I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
