DeFi Protocol Euler Gets $32M From Coinbase, FTX To Diversify DAO

Euler said it has raised millions of dollars via a “DAO treasury diversification round,” valuing the budding DeFi protocol at $375 million

article-image

Blockworks exclusive art by Axel Rangel

share

key takeaways

  • DeFi lending protcol Euler is looking to diversify its decentralized autonomous organization ahead of launch
  • Venture capital arms of Coinbase, FTX as well former Andreessen Horowitz alum Kathryn Haun’s Haun Ventures were involved in the round

DeFi lending protocol Euler said Tuesday it has received millions in fresh funding from industry veterans in a bid to diversify its DAO treasury.

The $32 million funding round was led by San Francisco-based venture capital firm Haun Ventures — founded earlier this year by former Andreessen Horowitz general partner Kathryn Haun.

Euler’s round also included support from the venture arms of prominent crypto exchange providers Coinbase and FTX, as well as venture capital firms Jump Crypto, Jane Street, Variant and Uniswap Labs Ventures.

Its latest raise, classified as a “DAO treasury diversification round,” places the 2-year-old firm’s valuation at $375 million, a spokesperson told Blockworks. Despite the market slump, DeFi (decentralized finance) continues to experience considerable activity, as evidenced by more than $105 billion in total value locked in smart contracts, Blockworks data shows.

Founded in 2020, Euler is a noncustodial protocol comprised of a set of smart contracts based on the Ethereum blockchain. Its platform allows users to lend and borrow most cryptocurrencies via risk-based asset tiers, according to its white paper.

“Euler takes a unique approach to addressing the risks associated with lending and borrowing crypto assets that stood out to us as exemplary in DeFi,” Haun said in a statement. “These kinds of innovative solutions are particularly important since lending and borrowing protocols serve as a key cornerstone of crypto markets.”

With the aim of “democratizing the assets people can lend and borrow,” the platform attempts to shield users from sudden decreases in an asset’s price, as well as subsequent liquidations that fail to adequately repay a borrower’s debt.

Euler says it structures the associated risks by placing cryptoassets into categories via its “isolation-tier,” “cross-tier,” and “collateral-tier” offerings. The hope is that by classifying the various risk profiles, users stand more ready and aware of what they are purchasing.

“When creating Euler, our main goal was to avoid the many necessary steps required to list assets on other protocols while ensuring that the risks associated with this type of lending and borrowing could be addressed properly and mitigated,” Euler founder Michael Bentley said.

“This raise was always about bringing onboard ecosystem partners that would contribute to good governance of the ecosystem.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Screen Shot 2024-05-16 at 14.53.45.png

Research

Loss-versus-rebalancing (LVR) is arguably Ethereum DeFi’s biggest problem, and thus reducing LVR is fundamental to the success of Ethereum. This report dives into the world of LVR. We uncover its importance for AMM designers, discuss the two major mechanism design categories and various projects developing solutions, and offer a higher level perspective on the importance of AMMs in general.

article-image

The courts adjourned the trials against Binance and Tigran Gambaryan until May 22 and May 23

article-image

Industry players have started realizing high-performance computing-related revenues as they buy Nvidia GPUs and secure customer deals

article-image

Yesterday saw Congress’ upper chamber side with the House on a measure aimed at overturning SAB 121

article-image

Oklahoma’s new crypto bill will go into effect in November of this year

article-image

The deposits hit a $20 million cap in just 45 minutes

article-image

Twelve Democratic Senators voted in favor to pass the resolution Thursday