The protocol aims to use the funds to drive up the adoption of the platform and expand its LLT concept, bringing gamified DeFi to the crypto space.
Aurigami, a decentralized finance (DeFi) lending protocol on the Aurora blockchain, announced a successful fundraising round of $12 million, raised from both private and public sales of its $PLY token, the governance token of the Aurigami platform. Announced Tuesday, the partnership combined a private raise of $9.5 million, collected from top venture funds in the crypto ecosystem and a further $2.5 million raised through an initial exchange offering (IEO) on Kucoin, Bybit and Impossible Finance. The public sales represent 5% of the total $PLY supply.
According to the statement, the new funds will grant Aurigami a sizable treasury and runway to develop new features on the platform. This will include expanding on the ‘Locked Liquid Tokens’ (LLT) concept and driving community and ecosystem growth such as promoting the adoption of NEAR’s USN stablecoin.
“We’re glad to have raised this combined $12M to help support us in building the platform through this crypto winter,” said Lucas Huang, Co-Founder of Aurigami. “With the combined support from the world-class investors and the amazing communities who joined our public sale, we’re here to bring LLTs and gamified DeFi to Aurora users.”
Launched in 2021, Aurigami provides users with an overcollateralized lending platform, allowing them to deposit digital assets and borrow assets as leverage to boost their investments. Simply, users are able to lend, borrow, and earn interest with their digital assets. Depositors provide liquidity to the protocol and earn passive income, while borrowers can get overcollateralized loans.
In a unique touch, the platform provides a ‘gamified’ DeFi protocol via its concept of Locked Liquid Tokens (LLT). The LLT concept allows the project to attract liquidity without creating instant selling pressure. For instance, the protocol introduced the $PULP token, which is the LLT for $PLY, to act as the claim for $PLY in the future.
Aurigami uses a combination of $PLY and $PULP for liquidity mining distribution, which reduces immediate selling pressure due to the implicit discount of $PULP over $PLY. For long-term holders, it is game-theoretically optimal to buy $PULP from the farmers wishing to realize an immediate profit.
The latest funding round welcomed private investors from all corners of crypto with Dragonfly Capital and Polychain Capital leading the private fundraising round. Other venture capital firms that joined the round include Mechanism Capital, Amber Group, Coinbase Ventures, Jump Crypto, Alameda Research, Lemniscap and others. Angel investors in the round included Alex Shevchenko, CEO of Aurora; Julian Koh, Co-founder of Ribbon; Alex Svanevik, Nansen; Etherscan’s Matthew Tan; and Santiago R. Santos.