$100M Wave Financial Fund Provides Liquidity to New Cardano DeFi Platforms

$100M Wave Financial Fund Provides Liquidity to New Cardano DeFi Platforms

Wave Financial is launching a fund designed to provide liquidity for new DeFi platforms launching in the Cardano ecosystem.

The Wave ADA Yield Fund, launched with an initial $100 million, will support the new decentralized exchanges, lending protocols and stablecoin issuers built on Cardano.

“Today we are launching what we believe is the first pure-play liquidity provision fund in crypto,” Wave Financial CEO David Siemer said in a statement on Wednesday. “Each of these decentralized applications contributes to the strong foundation of the Cardano blockchain as they realize a fully functional and diverse ecosystem.”

Based in Singapore EMURGO, a founder of Cardano Protocols, supported the creation of the Wave fund, according to the press release. EMURGO launched a $100 million investment vehicle in September to invest in early-stage and growth-stage companies that are shaping the Cardano ecosystem.

Cardano (ADA) has the eighth-highest market capitalization among cryptoassets, according to data compiled by Blockworks. ADA’s market cap is around $38 billion – slightly less than Solana (SOL) and more than Terra (LUNA).

DEXs (decentralized exchanges) and DeFi (decentralized finance) lenders have gained the fastest popularity in attracting users and capital, according to the company. The ADA Yield Fund will provide liquidity to the two asset pools that represent each side of a trading pair for Cardano DEXs.

Wave will continue to support and expand staking pools to strengthen the Cardano network.

“With regards to Cardano, we have been very impressed with the academic research that forms the basis of the work they are building in a proof-of-stake consensus mechanism with a proper staking setup,” said Benjamin Tsai, President and Managing Partner of Wave Financial Blockwerke. “With the introduction of smart contract capabilities last year, the ecosystem is ripe for growth in DeFi, NFT and other areas.”

The Los Angeles-based company has more than $1 billion in assets under management. It offers a Wave BTC Income & Growth Digital Fund that sells one-month call options backed by the Bitcoins held in the fund, collects a premium from option sales, and passes this premium on to investors in the form of a monthly dividend.

Wave Financial also has an early-stage crypto investment fund that has been investing in blockchain companies, protocols and cryptocurrencies since 2018.

Siemer previously told Blockworks that he personally invests primarily in Bitcoin, Ether and Cardano. The CEO of Wave Financial also noted at the time that he was bullish on NFTs (non-fungible tokens), predicting that the space would grow 100-fold in the next few years.

Tsai said the company is in discussions with a number of other protocols to launch products similar to the Cardano fund. It also reviews offers that are not protocol specific.

“One area of ​​interest of the institutional client base we are speaking to is DeFi and generating attractive returns from the crypto market with minimal market exposure,” Tsai said. “This is something we want to package and offer soon.”

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The post “$100M Wave Financial Fund Offers Liquidity to New Cardano DeFi Platforms” is not financial advice.