TFC will provide additional resources and guidance beyond the cost of audits, including monthly assessments of projects that received funding and the deployment of TFL’s expertise and connections in the industry.
SEOUL, South Korea (PRWEB) February 04, 2021
Terraform Labs (TFL), the company behind the Terra blockchain, has introduced a new ecosystem development fund -- Terraform Capital (TFC). The $10 million allocation from TFL to TFC will provide launch capital to fund project audits to help founders get to market quickly, provide resources and capital to give projects credibility, and will extend access to the Terra ecosystem.
“The mandate of Terraform Capital is to make strategic investments on behalf of TFL, with the goal of expanding our ecosystem by funneling resources into promising community projects that add value to the Terra ecosystem,” says Do Kwon, Co-Founder & CEO of TFL.
The fund will be used primarily for audit costs for projects seeking a grant under the TFC framework. The preconditions for qualifying for funding are that LUNA, the native asset of the Terra blockchain, or UST, one of the platform’s stablecoins, must be used in a meaningful way. Projects can apply via the Google Form on the TFC website, and their applications will be evaluated every two weeks by a dedicated IC committee.
TFC will provide additional resources and guidance beyond the cost of audits, including monthly assessments of projects that received funding and the deployment of TFL’s expertise and connections in the industry. TFC is also exploring various incentive programs that would reward projects for hitting specific milestones like TVL or user adoption.
Drawing inspiration from FairLaunch Capital, which has seen a deluge of inbound requests from DeFi-based startups, TFL has engaged with a cadre of auditors to offer thorough and prompt audits for projects applying for TFC grants. The current slate of auditors includes Sentnl, Quantstamp, and Solidified. Auditor selection for projects will be made on the basis of costs and turnaround time relevant to project needs, with the goal of expediting the process to complete within 2 weeks.
“In 2020 alone, over 240 million USD worth of digital assets were lost or stolen as a result of DeFi hacks, but no funds have been compromised in code audited by Quantstamp," says Quantstamp CEO Richard Ma. “We look forward to working with Terraform Capital grant recipients to provide them with a secure foundation to build upon.”
The TFC rollout comes on the heels of TFL’s successful launch of Mirror, a synthetic assets protocol, and precedes the formal launch of Anchor -- a low-volatility savings protocol. Both products represent ideal focus points for prospective projects to receive capital from TFC.
About Terraform Labs
Terra's stablecoin ecosystem aims to make money more useful and attractive to users. Terra confronts issues of currency debasement, high user costs, and volatility plaguing the fiat and crypto economies by creating stablecoins pegged to the world's major fiat currencies (USD, EUR, CNY, JPY, GBP, KRW, and the IMF SDR) that deploy decentralized monetary supply controls to retain value, generate stable interest, and keep transaction costs low. Terra now has the third-highest number of transactions of all blockchains (after BTC and Ethereum) and is generating 13M USD in fees annually. TerraKRW today powers Chai, one of the largest e-commerce wallets in Korea, which hosts over 2 million users and generates $1.2 billion in annualized transaction volume. Investors in Terraform Labs (TFL), the group behind Terra, include Arrington XRP Capital, PolyChain Capital, Binance Labs, Huobi Capital, FBG Capital, and TransLink Capital.