Element Finance Raises $32M Series A at a $320M Valuation
We’re excited to announce the closing of our Series A. The round was led by Polychain Capital and includes previous investors Andreessen Horowitz, Placeholder, A_Capital, and Scalar Capital. New investors in the round include Advanced Blockchain, Republic, Rarestone, Yunt Capital, P2P Validator, Ethereal Ventures, and their limited partners; and Femboy Capital.
We’re also happy to have some of the most respected builders in DeFi, join the round:
- Rune Christensen (Founder of MakerDAO)
- Stani Kulechov (Founder & CEO of Aave)
- Fernando Martinelli (Co-Founder & CEO of Balancer)
- Kain Warwick (Founder of Synthetix)
- Hart Lambur (Co-Founder of UMA Protocol)
- Julian Koh (Co-Founder & CEO of Ribbon Finance)
- Alex Svanevik (Co-Founder & CEO of Nansen)
- Santiago Roel Santos (Former partner at ParaFi Capital)
- Mariano Conti (Former Head of Smart Contracts at Maker Foundation)
- Cyrus Younessi (Former Head of Risk Management at Maker Foundation)
- Tracheopteryx (Yearn)
- Darren Lau and Daryl Lau (Not3Lau)
- Anthony Sassano (Ethereum educator)
- David Hoffman and Ryan Sean Adams (Co-Owners of Bankless)
- Dean Eiganmann (Co-founder Dialectic)
- Zachary Cole (CTO of Slingshot)
- Patrick LaVecchia (CEO of Oasis Pro Markets)
- Will Price (DeFi Data Scientist)
- Marc Bhargava (Co-founder of Tagomi, acquired by Coinbase).
We’re thrilled that these partners align with our vision. We can count on their accumulated experience to make Element an even more robust DeFi protocol that will continue to unlock DeFi globally and introduce powerful new primitives.
How it started and how it’s going
We started building the Element Protocol in December with the primary goal of building a new financial primitive that would enable high fixed rates in DeFi, while maximizing capital efficiency, creating market liquidity, and reducing user costs. We announced our seed funding round in March, launched our testnet on May 8, and launched Element on the Ethereum mainnet on June 30!
In three months since mainnet launch Element has:
- Surpassed the $180 million total value-locked (TVL) milestone
- Surpassed $70 million in trading volume
- Launched terms for seven different asset classes, including USDC, DAI, and WBTC
- Consistently provide the highest fixed-rate yields denominated in USD in the DeFi industry (Up to 13% on USD)
- Surpassed 9,000 active users
In this span, we have also introduced our Treasury Management initiative. This initiative has the goal of helping DeFi Protocols, DAOs, Funds, and Institutions diversify their treasuries by allowing them to earn fixed rates on their treasury capital (or a portion of it) while maintaining the flexibility to exit their positions if needed. Multiple teams have also started developing new products and services on top of our protocol, proving our hypothesis that Element is a new DeFi building block.
Since the beginning, we’ve envisioned Element as an open, self-sustaining, and community-governed protocol that will hold strong to the principles of decentralization that make DeFi so powerful
And one more thing. Since the beginning, we’ve envisioned Element as an open, self-sustaining, and community-governed protocol that will hold strong to the principles of decentralization that make DeFi so powerful. That’s why we announced Element’s Governance Model early on.
With this model, we look to introduce new governance primitives that can help move the space forward by bringing more flexibility, empowerment, and scalability while successfully maintaining the security and robustness of the protocol.
We’ve been busy, to say the least!
And it wouldn’t have been possible without our outstanding team that has worked relentlessly to ship at breakneck speed while maintaining world-class delivery. But, above all, it wouldn’t have been possible without a group of remarkable individuals that naturally enhance each other, creating one of the most solid teams I’ve had the pleasure to work with.
With this new funding round, we will scale the team across all project areas to continue growing at a pace that allows us to improve the protocol, and continue to innovate and strengthen our research efforts. We’re looking to hire Engineers, Economists, Researchers, Project Managers, and Designers that want to join us in building new financial primitives.
In the near term, we will be launching Element’s governance system and working on making several improvements to the overall user experience of the platform. We’ll also push forward new product concepts and continue significant research for enhancing DeFi and the blockchain space as a whole.
Stay tuned because the best is yet to come!