NEAR Native Money Market Burrow Raises $5M from Dragonfly, ParaFi, and Jump
Burrow, the first decentralized money market on NEAR Protocol, has successfully raised $5M prior to mainnet launch. Investors include Dragonfly Capital, ParaFi Capital, Jump Crypto, Lemniscap, Mentha Partners, Warburg Serres Investments, QCP Capital, DeFi Capital, D1 Ventures, GFS Ventures, SevenX Ventures, IOSG Ventures, Kronos Research, Move Capital, and Metaweb Ventures. Burrow’s investor network will not only bootstrap its initial liquidity, but also share their expertise to build a stronger DeFi ecosystem on NEAR.
On Burrow, users can deposit base layer assets such as NEAR, DAI, USDT, USDC, ETH, and wBTC to yield interest, as well as borrow against them at customizable rates. On top of this, users can unlock yield staking and self-repaying loans from interest-bearing assets such as stNEAR, as well as stETH, stSOL, and stFTM in the near future.
With the launch, Burow will be distributing liquidity incentives of up to 6% of its total token supply. In the second month, it will launch a staking program that adopts a veToken (voting escrow token) design, where users can stake the native token BRRR to receive xBRRR, with which they can vote on DAO governance proposals. Additionally, xBRRR staking will benefit users with boosted rewards for supplying assets.
“The liquidity layer Burrow provides will be a critical component in NEAR’s DeFi landscape. Moreover, Burrow will realize DeFi composability on NEAR, for instance, by utilizing stNEAR from Metapool as collateral and providing yield, and then building leveraged positions on Ref Finance (AMM DEX),” said Kendall Cole, the co-founder of Proximity Labs. “Burrow is the right product at the right place and right time.”
Built on NEAR’s native runtime, Burrow will leverage its near-zero transaction costs, fast finality (1–2 seconds), and interoperable infrastructure, to bring DeFi to underserved users everywhere.
From Burrow’s Investors
We’re very excited to back Burrow. DeFi on NEAR is just in its infancy, and Burrow is one of the foundational building blocks on which NEAR’s DeFi ecosystem will be built.
Haseeb Qureshi, Dragonfly Capital
NEAR has built an incredibly vibrant developer ecosystem across DeFi, NFTs, and gaming. We believe decentralized money markets act as a cornerstone for DeFi given their composability and utility. We’re excited to co-lead Burrow’s seed round and back the team’s vision of launching a NEAR-native money market. With an initial focus on staked assets, we think Burrow will help unlock liquidity for layer 1 assets in a seamless manner. By building natively on NEAR, we believe Burrow can integrate with other NEAR-native DeFi primitives including DEXs, liquid staking solutions, and stablecoins.
Anjan Vinod, ParaFi Capital