DeFi Update: Synthetix Project Raises $3.8 Million in Funding Round

In a recent update, Synthetix, a decentralized finance (DeFi) project has successfully raised $3.8 million in a new funding round.
Framework Ventures To Keep SNX Tokens in Escrow
Per the announcement, Framework Ventures has purchased a total of 5 million Synth (SNX) tokens from the Synthetix Foundation’s treasury. The price of one SNX token is $0.76. The list of firms and enterprises that have purchased large amounts of Synth tokens continue to be in close wraps. Furthermore, Framework ventures will be keeping its SNX tokens in an escrow account for a period of 24 months. Also, the latter will be staking these tokens in order to add to the existing SNX supply and will actively participate in Synthetix’s community governance process.
From the Co-Founder’s Desk
Synthetix’s “infinite liquidity” model is a major advantage over its competitors. Synthetic assets are a financial primitive that enables inclusion and innovation beyond traditional financial markets, and will likely represent the next leg up in DeFi.”
said Michael Anderson, co-founder of Framework Venture.
Are SNX Token Holders At A Risk?
However, a study published in June suggested that despite the project’s popularity, the protocols and mechanism which guarantee the value of minted synthetic products have loopholes and expose the token holders to risk.
“If Synthetix is to succeed in the coming years, the integration of a liquidation process, more liquid collateral types, and some kind of monetary policy tools are a must,”
Matteo Leibowitz, leading blockchain and crypto researcher said at the time.
DeFi is Fast Expanding
The previous week saw an address linked to the popular Silicon Valley venture capital firm Andreessen Horowitz, purchasing approximately $235,000 USD worth of SNX tokens. This purchase then led to a 38% rise in the token price. While Synthetix is a newcomer in the DeFi space, the latter is fast expanding. Last week, the total value of assets locked in DeFi (when denominated in ether) crossed the 3 million ETH mark for the first time ever. This doesn’t mean that 3 million Ethers were locked in DeFi, but that the value locked in DeFI has crossed the 3 million ETH mark. This marks an important milestone for Ether which is being hailed as money by many ETH supporters.
Source- Twitter
The DeFi space is all set to revolutionize the crypto and blockchain arena. Let us know, what you think in the comments below!
- Trump-Backed World Liberty (WLFI) Plans RWA Tokenization Paired with USD1 Stablecoin
- Stripe Eyes U.S. Banking Charter, Pioneers One-Click Stablecoin Issuance for Firms
- Breaking: Metaplanet Expands Treasury With 5,268 BTC Purchase, Climbs to 4th Largest Holder
- BREAKING: Nasdaq Files with US SEC to List BlackRock Bitcoin Premium Income ETF
- Mr Beast, Whales Buy ASTER Token Amid 20% Crash, What’s Next?
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
- Analyst Predicts Dogecoin Price Surge as DOGE ETF AUM Hits $20M
- Ethereum Price Eyes $8,600 As Institutions And Whales Double Down
- Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45
- Bitcoin Price Set to Rebound Ahead of US Government Shutdown, NFP Data