Compound, the builders behind one of the most popular decentralized finance apps on Ethereum, just raised an impressive $25 million war chest in a Series A fundraising round that was backed by some of the cryptocurrency arena’s biggest investors.
Revealed on November 14th, the Series A raise saw venture capital firms like Andreesen Horowitz (a16z), Polychain Capital, Paradigm, and Bain Capital Ventures, throw a new round of chips behind the promise of the DeFi app’s future and growing ecosystem. a16z was the raise’s largest investor, although at an unspecified sum.
With the new funding secured, Compound chief executive officer Robert Leshner told Fortune that the name of the name going forward will be making the project’s crypto lending services readily usable by mainstream, non-tech users. As a step in that direction, Leshner said the DeFi protocol will be integrated with other major cryptocurrency companies, e.g. Coinbase, by the end of next year .
And while the Compound team is the main driving force behind its associated dApp, the company plans to continue phasing out their direct stewardship in favor of a more decentralized governance process. To that end, Leshner said:
“As with Bitcoin, we want to ensure that no one, including the company that built it, can exert undue influence on Compound’s protocol. Corporations come and go but we want to build a protocol that lasts forever.”
Of course, lasting forever is a big aim; but that Compound will last a long time already seems clear considering all the other rising Ethereum DeFi “money lego” projects that are currently relying on Compound’s open infrastructure.
Take the example of InstaDapp, which recently raised its own seed round of $2.4 million on the appeal of its automated “bridge” for crypto lenders wanting to move positions between Compound and Maker and vice versa. For context, both Maker and Compound are currently in the top three DeFi projects per value locked within their protocols…