Ref Finance, an automated market maker for Near, has concluded a $4.8 million funding round headed by Jump Crypto, Alameda Research, and Dragonfly Capital. AMMs, essential to decentralized finance, facilitate liquidity provision and token incentives for users. Ref Finance's focus on stablecoins and Near's growing interoperability position it as a liquidity gateway, enabling the trading of various assets with low transaction costs and fast finality. The funds will support Ref Finance's team expansion and enhancements to its products and services within the Near ecosystem.
Ref Finance Secures $4.8M Funding Led by Jump Crypto to Drive DeFi Innovation on Near Blockchain
February 17, 2022 - Ref Finance, a transformative automated market maker (AMM) and stableswap marketplace for the Near blockchain, has announced the successful closure of a $4.8 million funding round led by Jump Crypto, a prominent venture capital firm in the digital asset ecosystem. Renowned investors Alameda Research and Dragonfly Capital also participated in the funding round, demonstrating their confidence in Ref Finance's vision and execution capabilities.
The funding milestone marks a significant step forward for Ref Finance as it positions itself as a key player in the rapidly expanding DeFi landscape on the Near blockchain. AMMs, like Ref Finance, serve as the backbone of DeFi, enabling decentralized exchanges to operate seamlessly and facilitating liquidity provision by empowering users to contribute their assets and earn a share of transaction fees and incentives. Stableswap marketplaces, a specialized form of AMMs, cater specifically to stablecoins, which form the foundation of liquidity pools.
As the Near blockchain continues to gain traction as a multichain interoperability hub, Ref Finance is poised to assume a vital role as a liquidity gateway. Currently, Near supports the trading of various tokens, including ETH, SOL, LUNA, and CELO, through asset bridges.
Bowen Shen, co-founder of Proximity Labs, the team behind Ref Finance, emphasized the compelling advantages of building on Near. "Trading on Near is incredibly cost-effective, with transaction fees as low as 1 cent and a transaction finality of one to two seconds," he explained. "This enables Ref Finance to pave the way for broader DeFi adoption among retail users."
Shen further elaborated on the strategic significance of the funding. "The capital raised will primarily be utilized to expand our team and accelerate the development of innovative DeFi products and services that cater to the evolving needs of the ecosystem, our partners, and our users," he stated. "We are honored to have secured the support of such esteemed investors who bring deep expertise and strategic alignment to our mission."
Prior to the funding announcement, the native token of the Near blockchain, NEAR, was valued at $11.40, boasting a market capitalization of $7.2 billion, according to CoinGecko. Simultaneously, Ref Finance's governance token, REF, was trading at $1.70.
The closing of this funding round is a testament to the growing recognition of Ref Finance's contributions to the DeFi ecosystem. As the Near blockchain matures and interoperability gains momentum, Ref Finance is well-positioned to capitalize on its strategic advantages and drive the adoption of DeFi among both institutional and retail users.
