Active funds in the DeFi sector provide support to liquidity protocol on Solana

Centralized exchanges continue to be among the most used tools for investors to buy, sell and exchange cryptocurrencies, a reality often likened to the level of security and monitoring the third party can provide to the end-user. Consider that thousands or even hundreds of thousands of dollars can be lost without a centralized exchange if the investor forgets their key. 

While many see the benefits of centralized exchanges, the concept is misleading when compared to the decentralized assets that investors use in their transactions. Along with centralization has come several hacks, fraud, market manipulation and artificially inflated trading volume. For this reason, the decentralized management and trading of digital assets have continued to grow in popularity, now being positioned as the new foundation for the financial world. With decentralized infrastructure comes a more transparent, resilient and less corruptible system for exchange.

To bring this concept to life, Alf Protocol has arisen to maximize liquidity provision (LP) in a manner that will efficiently handle capital deployment between traders and investors, features made available through AlfMM (a DEX service) in the niche ecosystem forming around the Solana (SOL) network.

Leveraging Solana’s strong foundation, Alf effectively becomes a family of protocols that brings together traders of all risk levels to conduct trades, facilitating liquidity and maximizing capital efficiency. Leveraged positions are currently available through leveraged long and short transactions and LP yield farming.

Furthering their efforts of blockchain liquidity has come down to the addition of several signed partnerships with venture capitalists (VCs). The team believes these partnerships will be crucial to Alf Protocol’s continued efforts in working with their community.

A basis for liquidity

Among notable VCs that have invested in the project are DustVentures, Zen Capital, Dib Ventures and Scorpio, Alpha Hunt VC, with one of the main goals to further progress the protocol through the provision of liquidity.

The VC Zen Capital is known as one of the most active ventures in the space, with a strong focus on the DeFi industry, protocols, blockchain-powered gaming and the greater metaverse. The fund has already demonstrated its interest in the potential for the digital economy, with Ertha, Spellfire, Solchicks and ReadyplayerDAO, already in its portfolio.

Alongside ZenCapital, is Dust Ventures, a VC firm with a history of investing in promising cryptocurrency projects and startups. The team incubates these projects through early-stage support, guiding their continued efforts in groundbreaking innovation in the cryptocurrency space.

The investment fund DibVentures, also joins the ranks with a focus specific to blockchain technology and the greater digital currency ecosystem. Their team has a diverse breadth of experience, which becomes evident in their commitment to identifying, researching and funding projects they deem disruptive in the industry.

Another notable firm is Scorpio VC, an asset management firm that manages short-term quantitative funds, digital asset funds, e-commerce and real economy projects, among others. Key to their efforts is the ability to solve financial difficulties and resource problems for SMEs, increase  liquidity and accelerate the development of associated projects.

Last on the list is Alpha Hunt Club, a group of seasoned investors that collaborate with young blockchain and cryptocurrency companies to help accelerate their growth. The team continues to hunt, hence the name, for new and exciting projects in the blockchain space to form mutually beneficial relationships.

Inspiring participation

The team’s continued success over the past year is evident with the sheer number of venture capital firms that have joined the project as strategic partners. 

To continue the same momentum forward, the team has shared that their goals into 2022, which include the full development and launch of the protocol, alongside several new partnerships.