SEOUL, South Korea, July 16, 2021 /PRNewswire-PRWeb/ -- Terraform Labs (TFL), the South Korean company behind the Terra public blockchain, has settled a $150 million fund commitment from major investors to drive the growth and development of projects building on its rapidly growing ecosystem of DeFi applications. The ecosystem fund is led by a roster of high-profile investors, including Arrington Capital, BlockTower Capital, Delphi Digital, Galaxy Digital, Hashed, Lightspeed Ventures, Pantera Capital, Parafi Capital, and SkyVison Capital.
"We're thrilled to present such an auspicious opportunity for the Terra community to build an amazing inter-chain DeFi ecosystem," says Do Kwon, Co-Founder and CEO of TFL. "Commitments from some of the most respected funds is a testament to the shared vision of bringing DeFi to the masses."
The fund commitments from investors will be deployed over several years, enabling direct access to early-stage investment opportunities in projects building on the Terra network. For prospective builders, the ecosystem fund offers a pool of potential capital allocation and line of communication to some of the industry's biggest funds -- helping bootstrap projects and provide opportunities to create innovative financial products and services on top of Terra.
"Pantera has long been a supporter of Do and what his team is building," says Paul Veradittakit, Partner at Pantera. "We're excited to continue to support the Terra ecosystem through its next phase of growth by backing the next generation of projects building on Terra."
Terra's UST stablecoin, which maintains its peg parity to the USD via an algorithmic design, has exploded in popularity recently, surpassing a $2 billion market cap in 6 months -- currently the fifth stablecoin overall by market capitalization. Terra's stablecoins underpin its ecosystem of applications, ranging from money markets (e.g., Anchor Protocol) to payments (e.g., CHAI) and synthetic assets like Mirror Protocol. Currently, the TVL of Terra's ecosystem (including staked LUNA) sits around $5 billion.
"Lightspeed is excited to back Do Kwon and the Terraform Labs team, who have consistently shown their ability to ship quality projects with speed including Mirror, Anchor, and Pylon," says Natalie Luu, Partner at Lightspeed. "A flourishing ecosystem of projects have emerged building on top of Terra's interoperable blockchain-based financial services. We look forward to supporting these projects through the Ecosystem Fund."
With dozens of third-party projects currently building on Terra, the ecosystem fund serves as a foundation for TFL to facilitate the ecosystem's growth via its relationships with investors and other resources.
"As a fund, we have been impressed with the vision and execution of Do and the Terra team as they imagined a rich family of algorithmic stablecoins -- which now years later, are at the heart of a vibrant ecosystem," says Michael Arrington, Founder of Arrington Capital and TechCrunch. "We're proud to work with other great investors as part of this announcement and to participate in the Terra Ecosystem Fund. We are excited to support many more amazing projects that will emerge from this combined effort."
Prospective Terra builders can get in touch regarding the ecosystem fund by contacting capital[at]terra[dot]money.
"We're excited to have such great investors, new and returning, to continue to support the Terra ecosystem, says Jeff Kuan, TFL's Business Development Lead. "To builders: We are open for business, and there are high-quality partners and capital committed to your success. Please don't hesitate to get in touch!"
For media inquiries please contact Kili[at]melrosepr[dot]com.
Terra is an application-specific blockchain built on the Cosmos SDK and Tendermint consensus. The Terra protocol deploys a suite of algorithmic, fiat-pegged stablecoins underpinning a thriving DeFi ecosystem like Anchor, CHAI, and Mirror Protocol. LUNA, the native staking and governance asset of Terra, absorbs the short-term volatility of Terra's stablecoins, with Terra's stablecoin (e.g., UST) demand a function of demand for Terra's DeFi ecosystem -- accruing value to LUNA via seigniorage.
Kili Wall, Melrose PR, 3102607901, [email protected]
SOURCE Terraform Labs (TFL)