Drop Protocol Collects $4M Seed Round

Drop Protocol, a liquid staking protocol for interchain assets and an inaugural member of the Lido Alliance, is reporting that it successfully closed a $4 million seed funding round. The round was led by CoinFund, with additional backing from CMS Holdings, Anagram, Interop Ventures, and Cosmostation. Angel investors include Vasiliy Shapovalov (co-founder of Lido DAO), Mustafa Al-Bassam (co-founder of Celestia Labs), and Jon Kol (CEO of Abacus Labs, a core contributor to Hyperlane). The Drop team is led by former Lido and P2P contributors. The protocol is built as an integrated application on Neutron.

As a liquid staking app, Drop rewards users with dAssets, which are receipt tokens representing a staked position. For example, if users stake ATOM with Drop, they receive dATOM. dAssets auto-compound staking rewards and can be used throughout the Drop ecosystem to earn additional yield.

Since its launch, the company said it has attracted more than 10,000 unique users and enabled $20 million worth of digital assets to be deployed across different dApps and DeFi opportunities. As a member of the Lido Alliance, it has access to distribution, liquidity, networking opportunities, and strategic and technical insights via Lido.

Even as the Interchain, a network of blockchains connected by IBC, has grown tremendously, the equivalent of billions of dollars in digital assets securing these blockchains remains locked and unusable. Drop’s mission is to strengthen the economic viability of sovereign blockchain economies by increasing the productivity of such digital assets.

“Blockchain technology will play a fundamental role in the future of internet products and services, and tomorrow’s blockchain economies won’t be built on the back of static, unproductive assets as they are today. The future is liquid, and with the support of Drop’s robust partner network, we’re accelerating toward it,” said Mitya Argunov, co-founder of Drop Protocol.

Users can auto-compound staking rewards while retaining the ability to deploy their assets in various dApps for additional yield and benefits, earn rewards, remain eligible for airdrops, support ecosystem growth, and exit their position at any time. As a result, Interchain dApps benefit from new users and asset inflow, while networks benefit from increased economic activity without sacrificing network security.

“CoinFund is proud to back Drop as it brings capital efficiency to the Interchain, making billions of dollars eligible to flow into DeFi,” said Alex Felix, CIO and managing partner at CoinFund. “Modular chains require higher staking participation to ensure security, but that shouldn’t come at a cost to their ecosystem. Mitya is a talented and ambitious founder, and we’re looking forward to witnessing the team empower the growth of interchain DeFi,”

“CMS is excited to back Drop Protocol as they work to bring liquid staking to the Cosmos and Celestia ecosystems. Drop’s cross-chain approach aligns with our chain-agnostic posture, and we look forward to supporting (them) as they continue to build,” said Tucker Watson, head of investment analysis at CMS Holdings.



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