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According to a blog post by the firm, Quasar will use the majority part of the fund for product development.
Decentralized asset management protocol Quasar Finance has completed a $5.4 million funding round to reach a $70 million valuation. The round was led by Shima Capital, but also saw participation from other notable firms and individual investors. Some of them include Blockchain Capital, Polychain Capital, CIB, HASH Capital, and Osmosis’ Sunny Aggarwal, among many others.
The funding round follows a $6 million funding round that the firm closed in July 2022. That round also had Polychain Capital and Blockchain Capital in participation.
Quasar Finance Eyes Expansion
According to a blog post by the firm, Quasar will use the majority part of the fund for product development. It will also use the remaining part to build its team up to at least 12 employees.
In its product development plans, Quasar will be looking to offer a wide range of investment products structured particularly for DeFi. The protocol will kickstart this mission by launching an index of the Cosmos ecosystem that gives a live feed, automatically refreshes, and supports the staking of assets.
Renewed Interest in Decentralized Finance
The just-concluded funding round highlights what appears to be a renewed interest in decentralized finance (DeFi) and its unmatched prospects. But that is arguably caused by the recent collapse of the multibillion-dollar empire of centralized FTX exchange.
Speaking about the funding, Quasar co-founder and CEO Valentin Pletnev recalls that the goal has always been to make permissionless asset management available to all. He also added partly:
“Securing this funding given ongoing and difficult market conditions is a massive show of confidence and a significant reaffirmation of our partners commitment to the common goal.”
Meanwhile, DeFi is not exactly without any weaknesses itself. Among its challenges is the issue of interoperability which is exactly what protocols like Quasar Finance are looking to address.
For instance, Quasar uses the Cosmos-based Inter Blockchain Communication (IBC) technology. The IBC technology allows users on the protocol to create and join different vaults or independent asset containers. But more than this, they will also be able to carry out interchain data transfers and connect tokens over various chains.