DAM Finance, a protocol for creating purchasing power from cross-chain token portfolios, has raised $1.8 million in a pre-seed funding round.
The DAM protocol uses dPRIME, a Dotsama stablecoin on Moonbeam, to create purchasing power from cross-chain token portfolios.
DAM Finance aims to transform DeFi borrowing experience by enabling borrowers to deposit baskets of tokens in a single transaction to mint dPRIME stablecoin.
Harrison Comfort (@hoco_dam), DAM Finance Co-Founder and Product Lead, said:
“Our goal is to significantly improve upon the current DeFi borrowing experience by embracing the reality that web3 investors have increasingly diverse portfolios across multiple chains.”
As DAM finance describes – borrowers act as bankers, portfolios become collateral, dPRIME becomes the means of creating purchasing power and DAM acts as a risk management wrapper.
DAM’s core contributors have backgrounds in enterprise and public blockchains, asset management and data science. They bring their past experience at firms such as R3, Myria, Fidelity, Oak Hill Capital, EY and IC Group. As a result, the DeFi startup believes that risk management will be a major focus area for DAM.
The funding round also got participation from Arrington Capital, Ledgerprime, D1 Ventures, 11-11 Capital, Stacker Ventures and prominent angels within the Dotsama community.
The funding by leading VCs in a stablecoin project amid the current bear market is itself a testament of the importance of the project as well the importance of stablecoins. Stablecoins have the potential to play a significant role in the future of banking and finance. Moreover, the adoption of stablecoins are likely to be faster compared to cryptocurrencies like Bitcoin and Ethereum, whose value fluctuates significantly.
DAM Finance mentioned in a press release shared with AlexaBlockchain that the Funding will help them accelerate development towards DAM’s mainnet launch, currently scheduled for later this year.