Cypher Capital backs Echelon in $3.5 million seed round - CoinJournal

Echelon aims to improve capital efficiency with features for institutional markets. Cypher Capital participated in Echelon’s $3.5M seed round. The funding supports the development of new products, RWAs, and expansion to new networks.

Cypher Capital, a prominent multi-strategy crypto investment firm, has announced its participation in a $3.5 million seed funding round for Echelon, a revolutionary decentralized lending protocol. The Echelon seed funding round also saw participation from notable strategic partners, including Amber Group, Laser Digital, Saison Capital, Selini Capital, Interop Ventures, and Re7. Cypher Capital’s investment signifies its dedication to advancing decentralized finance (DeFi) and blockchain technology. Cypher Capital supports Echelon’s DeFi advancements Echelon aims to transform the decentralized lending landscape by enhancing capital efficiency and integrating with other DeFi applications. The protocol operates on Move-based blockchains, such as Movement and Aptos, providing users with advanced lending functionalities. Echelon’s platform is designed to optimize borrowing power through correlated assets, offer isolated pools for niche markets, and enable seamless in-wallet yield strategies. This approach targets institutional-grade markets while maintaining affordable borrowing rates and innovative yield opportunities. Funding to enable Echelon to expand products The new funding will enable Echelon to develop additional lending and risk management products, expand its network reach, and enhance its global offerings. The protocol plans to implement strategies supported by treasury and real-world assets (RWAs), cross-chain deposit vaults, and recruit more full-stack and smart contract engineers. Glen Rose, the co-founder of Echelon, expressed excitement about building core primitives on high-performance Move-based chains, aiming to position Echelon as a leader in the next generation of DeFi protocols. Cypher Capital’s investment in Echelon underscores its commitment to supporting innovative solutions in the digital economy, reinforcing its role in shaping the future of Web3 infrastructure and applications. Harsh Agarwal, the Investment Lead at Cypher Capital, in a press release shared with Coinjournal said that they are excited to support Echelon’s efforts in developing high-performance lending markets seeing that it has demonstrated that it is truly driving innovation in the DeFi space by integrating real-world assets.

Share this article

Categories

Markets

Tags

Cryptocurrency News DeFi News

Sky’s USDS stablecoin has a freeze function, raising decentralization concerns. Rune Christensen, Sky’s co-founder, says the freeze function won’t be active at launch. Sky’s website is blocking VPNs further adding to the criticism following the rebrand.

A day after the decentralized finance (DeFi) project Maker rebranded to Sky, the new protocol is under intense scrutiny over a freeze function in its upgraded stablecoin, USDS. Critics argue that the new stablecoin’s “freeze function,” which allows the issuer to freeze transactions, could undermine the project’s commitment to decentralization. The backlash has been significant, especially given Sky’s recent rebranding and controversial website changes. Co-founder Rune Christensen has responded to the concerns, aiming to clarify the project’s stance. Concerns over the decentralization of Maker, now Sky Some community members believe the USDS “freeze function” conflicts with the core principles of decentralization. An X user expressed concern that such a feature could fundamentally “defeat the purpose of the project.” The freeze function, which could potentially allow transactions to be halted under certain conditions, has raised questions about how well it aligns with decentralized ideals. Co-founder of Sky addresses the freeze function concerns However, Rune Christensen, co-founder of Sky, has addressed these concerns in a recent X post, clarifying that the freeze function will not be active at the launch of USDS. Instead, the stablecoin will initially include an upgrade capability that may allow future governance decisions to determine whether and how to implement this feature. Christensen emphasized that any such decision would be carefully considered, weighing risk factors to maintain the system’s integrity.

Christensen further explained that if activated, the freeze function would adhere to legal frameworks in jurisdictions where Sky operates. This approach aims to ensure a higher level of legal certainty for real-world asset (RWA) collateral backing USDS. Adam Cochran from Cinneamhain Ventures supports this perspective, suggesting that a freeze function is necessary for securing backing from US Treasury securities and integrating with traditional finance systems.

Sky website blocking VPN access Besides the “freeze function,” the rebranding of Maker to Sky, along with the transformation of its Dai stablecoin to USDS, has also been met with criticism due to the project’s website blocking VPN access. Despite these issues, Christensen has assured users that the original Dai stablecoin remains unchanged and usable, with USDS incorporating the freeze function as part of Sky’s “Endgame” roadmap.

Share this article

Categories

Markets

Tags

Cryptocurrency News DeFi News Maker Stablecoin

Source