Near Foundation Raises $150M to Boost DeFi Expansion

Near Protocol, a blockchain aiming to strengthen its DeFi ecosystem, has secured $150 million in a funding round led by Three Arrows Capital. Investors such as Andreessen Horowitz and Alameda participated, reflecting the excitement surrounding Near's technological advancements. The funding is part of Near's strategy to attract users and DeFi protocols, following the launch of its Aurora platform and an $800 million ecosystem fund. The NEAR token has surged to a new all-time high on the news.

Near Foundation Secures $150 Million Funding for DeFi Expansion

The Near Foundation, the non-profit organization supporting the Near Protocol blockchain, has announced the successful conclusion of a $150 million funding round, bolstering its financial resources to drive decentralized finance (DeFi) adoption.

Led by Three Arrows Capital, the funding round attracted participation from several prominent crypto-focused investment firms, including Mechanism Capital, Dragonfly Capital, Andreessen Horowitz (a16z), Jump, Alameda, Zee Prime, and Amber Group.

"The near-instant completion of this fundraising demonstrates the industry's enthusiasm for Near's technology and ecosystem," said Ashwin Ramachandran, General Partner at Dragonfly. "We are eager to support their mission to achieve widespread adoption among developers, users, and the broader blockchain community."

The valuation of the NEAR tokens sold in the round was not disclosed, but the pricing was based on a one-month time-weighted average price (TWAP).

This latest funding round is part of Near's ambitious strategy to position itself as a leading hub for DeFi innovation. In October, Near's Aurora, a platform that enables developers to deploy Solidity code on Near, raised $12 million. Additionally, Near announced an $800 million ecosystem fund later that month, with a significant portion allocated to DeFi grants and liquidity mining.

"There has been a shift in the ecosystem's dynamics," said Illia Polosukhin, co-founder of Near. "We are witnessing a surge in demand for DeFi solutions, and we believe Near is well-positioned to cater to this growing market."

Sources familiar with the matter have indicated that several funds involved in the latest round have also verbally committed to providing liquidity to emerging DeFi projects on Near.

"Near has long been recognized as a promising layer 1 protocol, but its lack of applications held it back in the past," added Ramachandran. "With the recent influx of support, we anticipate a surge in ecosystem development and activity."

Reflecting the heightened anticipation, the price of NEAR has experienced a significant upturn in the lead-up to the funding announcement. As of January 13, 2022, the token has gained 18% on the week, reaching an all-time high of $19.38, an increase of 5.60% from pre-announcement levels.

About Near Protocol

Near is a scalable blockchain platform designed for high-throughput and low transaction costs. It utilizes a unique sharding mechanism known as Nightshade to achieve efficient execution of smart contracts. Near's emphasis on user experience and developer support has attracted a growing community of developers and projects building on the platform.

About the Near Foundation

The Near Foundation is a non-profit organization dedicated to supporting the growth and development of the Near Protocol ecosystem. It provides grants, educational resources, and technical assistance to developers and projects building on Near. The foundation's mission is to foster a vibrant and sustainable ecosystem that drives innovation in blockchain technology.