The Chicago DeFi Alliance, launched in April, is poised to help members make a killing from the recent decentralized finance (DeFi) craze.
So many billions of dollars worth of assets are now cycling through various DeFi projects at such erratic rates that while you’re reading this the estimates are probably changing. Suffice it to say, the Chicago DeFi Alliance now has roughly 55 members, including new additions Binance.US and MakerDAO.
After graduating seven DeFi startups from its first accelerator program this summer, CDA partner Qiao Wang said the organization is now launching a Liquidity Launchpad program to get “informed and professional players in this space” committing their crypto to various protocols.
First, the program vets pre-seed DeFi startups (unlike the accelerator program for slightly more mature startups) with a standardized process that involves audits and traditional measures of professionalism, such as being a registered company. (Some of the food-themed DeFi projects garnering attention today are rough drafts without audits or formal teams.) Then, the CDA does matchmaking of experienced investors, market makers and DeFi builders. Teller Finance, the startup behind a credit and loan management protocol, is the first startup to kick off the launchpad program.
“The teams are validated and the smart contracts are audited. These are long-term, sustainable projects,” CDA and Volt Capital co-founder Imran Khan said during a Google Hangouts interview. “This allows institutional investors to provide liquidity for a fixed amount of time. … We hope to have market makers that are there for the long term, not just the short term.”
To that end, Teller Finance co-founder Ryan Berkun said the CDA program will help his startup laucnh the lending program with more than $8 million worth of liquidity, thanks to several undisclosed investors. CDA’s traders provide…