$7.2 Million Raised by Alkimiya
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An editor at Coincrop
16 Jan 2023 | 4 min read
lkimiya has recently landed a stunning $7.2 million in investments, with 1kx and Castle Island Ventures taking the lead role in building decentralized capital markets for blockspace.
In November, the protocol's fundraising was capped off with contributions from esteemed investors such as Dragonfly, Circle Ventures and Coinbase Ventures.
Ex-Itaú Unibanco engineer Ricardo Grobel and former Morgan Stanley employee Zhang have come together to establish Alkimiya, a platform intended to provide hedge solutions for blockchain producers like miners and staking validators.
Zhang compares these entities to standard commodity producers in regards to the expenses associated with manufacturing a good; for cryptospace producers, this would be coins. However, since cryptocurrency yields and prices vary constantly, producing such a volatile and fluctuating product carries substantial risks with no financial resources available to manage them.
Zhang declared, "Traditional commodity companies like oil or gold companies use futures and options to hedge against their production risk," & "The problem with blockspace producers is that they can hedge against the price of bitcoin or ETH but they don't actually know how much bitcoin or ETH to hedge."
Presently, the lion’s share of DeFi yields hinge upon crypto-based liquidity that is susceptible to unsteady market conditions. Alkimiya, however, ensures returns connected to blockspace production. By allowing blockchain developers to secure a predictable yield for their future outcomes beforehand, this hedging system helps them reduce risk and in turn gives DeFi users access to the value created by blockchain producers.
"If we look at the crypto space across the board, we need to identify naturally recurring cash flow that is sustainable and that's relatively independent of all of these liquidity-driven activities that happening here," Zhang declared.
Alkimiya debuted on the Layer 1 blockchain Avalanche to conduct a public beta in March of last year, verifying their protocol and correcting any potential issues.
With this new funding, the team will be growing in preparation for a complete product suite launch. This portfolio of products is scheduled to go live on Ethereum mainnet within Q1 2021 and includes ETH staking contracts as well as their Vault commodity.
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