Wave Financial is introducing a fund to provide liquidity for newly formed DeFi platforms in the Cardano ecosystem. The Wave ADA Yield Fund, which has a $100 million first investment, will promote Cardano-based decentralised exchanges, lending protocols, and stablecoin issuers.
Wave Financial CEO David Siemer, stated:
“Today, we’re announcing the launch of what we believe to be the first cryptocurrency liquidity provisioning fund. Each of these decentralised applications contributes to the Cardano blockchain’s robust foundation by creating a fully functional and diversified ecosystem.”
According to the news announcement, EMURGO, a pioneer of the Cardano protocols, backed the development of the Wave fund. In September, EMURGO announced the formation of a $100 million investment vehicle to support early-stage and growth-stage Cardano startups. According to data published by Blockworks, Cardano (ADA) has the eighth-highest market capitalisation among cryptoassets. The market capitalization of ADA is around $38 billion, slightly less than Solana (SOL) and significantly more than Terra (LUNA).
According to the business, DEXs (decentralised exchanges) and DeFi (decentralised finance) lenders have achieved the most traction in terms of drawing customers and funds. The ADA Yield Fund will provide liquidity to the two asset pools that represent each side of the Cardano DEX trading pair.
To strengthen the Cardano network, Wave will continue to promote and expand staking pools. The Los Angeles-based firm is in charge of over $1 billion in assets. The firm has a Wave BTC Income & Growth Digital Fund that sells one-month call options backed by bitcoin held in the fund, which then collects a premium from option sales, and distributes the premium to investors in the form of a monthly dividend.
Since 2018, Wave Financial has also invested in blockchain startups, protocols, and cryptocurrencies through an early-stage crypto investment fund.
Read more: DeFi growth may slow down according to Morgan Stanley
