Avalanche is a layer 1 smart contracts protocol. The new funding will be used to develop several Avalanche protocol capabilities, including for DeFi, enterprise applications and NFT.
The Avalanche Foundation has announced a $220 million investment fund, called ‘Blizzard’, for ecosystem development. Blizzard’s funds will be used for accelerated growth, innovation and protocol development. It specifically focuses on DeFi, enterprise applications, NFT.
The Blizzard fund is backed by a number of well-known groups, including the Avalanche Foundation itself, Ava Labs (the software company behind Avalanche) and Three Arrows Capital. Blizzard aims to be an actively managed fund and will support projects through equity investments, token purchases, business development and ecosystem integration support.
After launching just over a year ago, Avalanche has over 320 projects based on the platform and has a total frozen value (TVL) of $8.2 billion. Of the new investment fund, Avalanche Foundation director Emin Gün Sirer said:
“Blizzard will play a key role in further accelerating growth and establishing Avalanche as a home for projects and individuals pioneering a new era in our space.”
The Avalanche team describes it as the fastest smart contract platform in the blockchain industry. John Wu, CEO of Ava Labs, acknowledged Avalanche’s importance to the decentralised world, but stressed that “the ultimate goal of Ava Labs is to enable traditional financial services firms and traditional businesses to tokenise their assets”. In other words, Wu says the “$700 trillion in assets that sit on financial services balance sheets” is more in line with Ava Labs’ vision for Avalanche than the roughly $200 billion currently at DeFi.
Other nine-figure investment funds or grants have been announced this year by other Tier 1 smart contract protocols. For example, the NEAR protocol announced a colossal $800 million development grant last week. In June, Solana Labs raised $314 million, and in September the Cardano ecosystem received $100 million for DeFi and NFT.
04-11-2021, Mr Advice TEAM