Porter Finance Raises $5M to Bring Credit to DAOs

Porter Finance has closed a $5M seed funding round for its DAO credit marketplace built on Ethereum, the company announced Wednesday. Included in the round were ParaFi Capital, Dragonfly Capital, Nascent Ventures, Buckley Ventures, Robert Leshner, Kain Warwick, Tyler Ward, Joey Santoro, and Sam Kazemian.

Porter Finance offers DAOs a platform to borrow at fixed rates with no liquidation risk. Using their project tokens as collateral, DAOs can mint zero-coupon bonds and sell them to fixed income investors. This provides a liquidation-free loan to DAOs while generating sustainable yield for lenders.

“There is currently no DAO-friendly solution for borrowing,” said CEO of Porter Finance Jordan Meyer. “Most DAO native tokens are not supported as collateral on incumbent credit markets such as Compound or Aave. On platforms where they are supported, DAOs face interest rate and liquidation risk. This is the first credit product built for DAOs.”

Nascent’s co-founder Dan Elitzer jumped at the chance to back Porter after discussing a similar concept with Ben Forman, ParaFi’s founder and managing partner.

“Corporate debt is just an absolute massive market. And companies, if they have cash needs, they don’t just go and sell more shares…debt-based financing just makes a lot more sense — effectively cheaper capital.”

“This is an important additional tool that DAOs should have in their toolbox” said Dan Elitzer, Partner at Nascent Ventures.

About Porter Finance

Porter is the first credit market built for DAOs. Porter offers DAOs the ability to borrow at fixed interest rates with no liquidation risk.

For more information about Porter Finance, please visit: https://porter.finance

Follow us on Twitter: @porterfinance_

Join our community on Discord: https://discord.gg/porter

View source version on blockworks.com: https://blockworks.co/porter-finance-has-a-new-idea-to-help-daos-grow-defi-bonds/

Contacts

Jordan Meyer, CEO at Porter Finance

e: jordan@porter.finance