Wave Financial, a blockchain and digital assets management firm, has announced the launch of a new fund designed to boost liquidity options for newly created decentralized finance (DeFi) platforms built on the Cardano ecosystem.
The $100 million fund will be used to support new decentralized exchanges, lending protocols, and stablecoin issuers working within the Cardano blockchain ecosystem. Dubbed the Wave ADA Yield Fund, the aforementioned amount is only an initial funding, with more investments coming in as the project goes forward.
"Today we are launching what we believe is the first pure liquidity provisioning fund in crypto. Each of these decentralized applications adds to the strong foundation of the Cardano blockchain as it realizes a fully functional and diverse ecosystem," shares CEO David Siemer, CEO at Wave Financial.
Cardano is a fully open source decentralized public blockchain and cryptocurrency project supporting some of the industry's leading protocols. Cardano's blockchain is proof-of-stake by design and features a highly scalable platform. EMURGO, the Singapore-based firm and founder of Cardano protocols, has supported the creation of Wave Financial's fund.
"Specific to Cardano, we were very impressed with the academic research that forms the foundation of the work that they are building, in a proof of stake consensus mechanism with a proper staking setup," shares Benjamin Tsai, Wave Financial president and managing partner.
With the Wave ADA Yield Fund, liquidity will be provided to the two distinct pools of digital assets that represent trading pairs for Cardano decentralized exchanges (DEXs). As part of the initiative, Wave Financial will also support and help expand existing staking pools on the Cardano network to help accelerate the ecosystem.
Wave Financial has disclosed that with the Cardano DeFi fund ongoing, it is already in talks with a number of decentralized protocols in a bid to launch similar products, while also looking into offerings that are protocol agnostic.
The firm is based in Los Angeles and oversees oversee $1 billion in assets under management (AUM). Wave Financial also operates an early-stage crypto investment fund which has been actively investing in blockchain and crypto firms, protocols, and projects since 2018.
The firm also offers the Wave BTC Income & Growth Digital Fund, a trading fund which allows investors to buy one-month call options backed by the fund's Bitcoin treasury. The fund then collects a premium from these options sales and shares the revenue to its investors through a monthly dividend.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.