The decentralized protocol Alkimiya launched its beta version on Avalanche last year. It is now planning a full launch on the Ethereum blockchain before the end of the current quarter. In anticipation of this event, the network has raised funds to support staking miners and validators. Here’s what it is.
$7.2 million in funds raised
Decentralized Protocol Alkimiya has raised funds to help entities during this bear market. The Block announced it a chirp this January 12, 2023. The media said: “Alkimiya raises $7.2 million to build decentralized financial markets for blockchain“. The funds will be used to finance the development of a protocol to support the activity of miners and staking validators.
Protocol will allow it cover the cash flow needed to hold out during the bear market. Leo Zhang, co-founder of Alkimiya, explained: “One of the major problems with DeFi today is the lack of natural support for cash flow.“.
The executive added:It is currently a system of highly self-referential and interdependent machines that depend on cheap liquidity sources and when the environment changes the entire DeFi space dries up very quickly“.
Among the entities that contributed to the fundraising are: Coinbase Ventures, Circle Ventures and Dragonfly Capital Partners. That said, Castle Island Ventures and 1kx led the funding round.
Features of Alkimiya’s next protocol
The upcoming cash flow hedging protocol will allow for that block initial mining and staking revenue. These proceeds will later be used to fund the future production of staking miners and validators. This system aims to promote better management of cash flow fluctuation risks.
It should be noted that this type of risk is higher in the DeFi ecosystem with lack of liquidity. Additionally, Alkimiya wants its protocol to offer a source of cash flow independent of global liquidity in DeFi ecosystems.
Leo Zhang says the completed strategic financing round will help Alkimiya continue its expansion. It adds that it will also deepen its relationships with key partners. You must know that without effective tools to manage risks, minors and validators face completely different risks. Among them is the inherent volatility of cryptocurrencies.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to convey information related to this ecosystem with my pen.