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Liquidity protocol on Solana is supported by active funds in the DeFi industry

VCs have proven critical in giving liquidity to the Solana ecosystem’s ongoing initiatives.

Centralized exchanges remain one of the most popular ways for investors to purchase, sell, and exchange cryptocurrencies, a reality that is often compared to the level of protection and surveillance that a third party can provide. Consider that if an investor forgets their key, they could lose tens of thousands, if not hundreds of thousands, of dollars.

While many people recognise the advantages of centralised exchanges, the term is misleading when compared to the decentralised assets that investors use. Several hacks, fraud, market manipulation, and artificially increased trading volume have accompanied centralization. As a result, decentralised administration and trading of digital assets has grown in popularity, and they are now being positioned as the new financial foundation. With decentralised infrastructure, trading becomes more transparent, resilient, and less corruptible.

Alf Protocol was created to maximise liquidity provision (LP) in a way that will efficiently handle capital deployment between traders and investors, with features made available through AlfMM (a DEX service) in the specialised ecosystem building around the Solana (SOL) network.

Alf effectively becomes a family of protocols, leveraging Solana’s robust base, that brings together traders of various risk levels to conduct transactions, facilitating liquidity and maximising capital efficiency. Leveraged long and short trades, as well as LP yield farming, are currently accessible for leveraged positions.

The inclusion of multiple inked collaborations with venture capitalists has aided their efforts in blockchain liquidity (VCs). These ties, according to the team, will be critical to Alf Protocol’s future efforts to work with their community.

 

A foundation for liquidity

DustVentures, Zen Capital, Dib Ventures, and Scorpio, Alpha Hunt VC are among the noteworthy VCs who have invested in the project, with one of the main goals being to advance the protocol through the availability of liquidity.

Zen Capital is one of the most active venture capital firms in the field, focusing on the DeFi business, protocols, blockchain-powered gaming, and the larger metaverse. With Ertha, Spellfire, Solchicks, and ReadyplayerDAO already in its portfolio, the fund has proved its interest in the digital economy’s potential.

Dust Ventures, a VC firm with a history of investing in promising cryptocurrency projects and entrepreneurs, is partnering with ZenCapital. The team guides these projects through early-stage support and incubation, ensuring that they continue to innovate in the bitcoin industry.

DibVentures, a new investment firm with a focus on blockchain technology and the broader digital currency ecosystem, has also joined the ranks. Their staff has a wide range of experience, which shows in their dedication to identifying, studying, and sponsoring disruptive ventures in the sector.

Scorpio VC is another significant company that handles short-term quantitative funds, digital asset funds, e-commerce, and real-economy ventures, among other things. Their ability to handle SMEs’ financial and resource challenges, enhance liquidity, and speed the development of related initiatives is critical to their efforts.

The Alpha Hunt Club is the last company on the list, a group of seasoned investors who work with emerging blockchain and cryptocurrency startups to help them expand. The team is still on the lookout for new and intriguing blockchain initiatives with whom to build mutually beneficial partnerships, hence the name.

 

Participation that motivates

The number of venture capital firms that have joined the project as strategic partners demonstrates the team’s ongoing performance over the past year.

To keep the momentum going, the team has revealed their objectives for 2022, which include the complete development and implementation of the protocol, as well as several new partnerships.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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