Float Protocol Raises $1.2M from DeFi Leaders such as The LAO, 0xMaki and MCV to Create a Truly Decentralised, Non-Dollar Stablecoin

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Float Protocol

5 min readSep 29, 2021

The Metaverse — On the 7th of February 2021 at 10pm UTC Float Protocol initiated its democratic launch. Float Protocol started with the belief that crypto needs its own denomination, a completely decentralised unit of account for the DeFi economy — #DeFiMoney. Today, Float Protocol is excited to announce that is has completed its treasury diversification round, raising $1.2M by on-boarding strategic partners such as Stani Kulechov of Aave, 0xMaki of Sushiswap, The LAO and MCV.

Why FLOAT

“Creating a decentralized & censorship resistant stablecoin is one of the most promising areas in DeFi. That’s where FLOAT comes in as a base pair and medium of exchange and I’m excited to back the team on this journey.”
— Santiago R Santos, DeFi investor

Crypto needs its own denomination. Whilst it is natural to compare things in price to the dollar (and this is why most stablecoins aim to be worth $1.00), it makes sense that if crypto is to build a new financial system, it should denominate itself in a currency of its own. Naturally, the dollar is a symbol of traditional, centralised finance. As such a new stable currency, that doesn’t try to be worth $1.00, is needed.

To this end, Float Protocol is building the decentralised monetary system of the future. At the heart of the protocol is the FLOAT token. It is designed to be the first truly native internet currency.

What makes FLOAT special

“Float Protocol answers the problems to USD inflation, crypto volatility, and regulator scrutiny of stablecoins with groundbreaking elegance and simplicity.”
— Dermot O’Riordan of Eden Block

FLOAT is one of the few stablecoins in the DeFi space that isn’t chasing a one dollar peg. The lack of peg means that FLOAT can avoid stereotypical protocol collapse scenarios, while still providing a stable value intraday. Simultaneously, users benefit from the increase in value of the underlying crypto market over the long term without having to stomach 50% ETH dips along the way. The Protocol has been live for 4 months and performed outstandingly. It launched in the worst week for ETH in 2021, seeing its ‘Basket factor’ drop to 40%. Yet, FLOAT maintained stability throughout.

FLOAT is a decentralised currency backed by Basket of solid crypto assets, enabling users to escape fiat’s great monetary inflation while achieving low-volatility. With the likes of USD pegged stablecoins at risk of regulatory repercussions alongside a monetary policy controlled by a central entity, FLOAT provides a true alternative, necessary for DeFi to maintain the decentralised element which should not be taken for granted.

Since our democratic launch, where Float Protocol targeted active and engaged DeFi participants for the distribution of BANK (our governance and utility token), we have:

Gained 4500 BANK holders, key long term supporters and believers in the Protocol
Launched Scattershot — Our fork of Snapshot which allows for multichoice weighted voting
Published our Litepaper — The first interactive litepaper in the crypto space
Achieved $1.5 Billion TVL during Phase 2 of BANK distribution via Community chosen pools
Created one of the first incentivised G-UNI stablecoin pair pool (FLOAT-USDC low fee on Uniswap v3)

Strategic Partners

The partners participating in this treasury diversification round include the following, in alphabetical order:

0xMaki, from Sushiswap
Ana Andrianova, Founder and CEO of Akropolis
Batuhan Dasgin
Eden Block, an early-stage blockchain and crypto venture capital firm whose mission is to back the builders of the new Open Internet.
Re7 Capital. Re7 provides strategic liquidity into DeFi to shape the financial ecosystem of tomorrow.
Freddie Farmer, Yield Farming at Birth, ex-Wintermute
Ivailo Jordanov (7percent Ventures)
Katya, Angel Investor, partner at P2P Capital, been focusing on supporting core blockchain infrastructure for the last 5 years. Formerly finance professional in the energy sector.
The LAO, a DAO supporting the blockchain ecosystem
Lyuben Belov, Founding partner at Launchub Ventures
MCV, a for-profit DAO that invests into early-stage Decentralized Applications
Santiago R Santos, DeFi Investor
Sergei Chan (BlockScience)
Stani Kulechov, Founder and CEO of Aave
Sunil Srivatsa, Founder and CEO of Saddle Finance

From the beginning, ever since Float Protocol’s democratic launch, one of the main aims of the Protocol has been to get supporters for the long haul. These key DeFi participants and builders shall be advocates, advisors, strategic partners and resilient supporters of the Protocol over the long term.

The diversification of the treasury will aid with potential integrations further down the line and allow the Protocol to hire and incentivise Community members as we grow towards becoming the unit of account of the crypto economy. The treasury diversification was completed on-chain via a smart contract, where strategic partners exchanged ETH for BANK, Float Protocol’s utility and governance token.

What is Next?

“The Float team is among the most skilled devs (doxxed or anon) I have been in contact with so it is a pleasure to support them and participate in their long term vision”
— 0xMaki

Our goal is to become DeFi money, the asset you cannot avoid, a decentralised floating currency for the crypto economy. We believe this is possible and we will do it regardless of the barriers along the way. To help us get there we are planning on spreading the word about FLOAT as much as possible and buidling with the Community — this includes:

Scaling and Spreading the Word — With links via Float Protocol’s new Strategic Partners the Protocol can look to make connections and place FLOAT in places which were unreachable previously. This includes various lending platforms and FLOAT as a payment method for various digital goods. FLOAT primes itself as the “perfect collateral” being less volatile than ETH while still being capital efficient.

Contribute & Hiring — We are looking for world class talent to buidl DeFi Money. If you’ve read this far and are keen to get involved, get in touch via Discord or Telegram!

Final Remarks

This treasury diversification marks just yet another milestone of the many seen so far in Float Protocol’s unique journey.

About Float Protocol

Float Protocol is building the decentralised monetary system of the future. At the heart of the protocol is the FLOAT token, an un-pegged stablecoin for the crypto economy. It is designed to be the first truly native internet currency, fully satisfying all three major properties of money: as a medium of exchange, a store of value and a unit of account. The Float Protocol community and the number of contributors are growing, join the discord and get involved here.