The software innovation company Union raised $3.9 million from Alameda Research and a few other companies in order to minimize Defi-related risks. In today’s cryptocurrency news, we are reading more about the company.
The decentralized platform that is aimed at lowering risks, costs, and access to DeFi, said that Union raised almost $4 million from a few well-known industry giants. The project plans to utilize the funds to develop and launch a set of new tools that will reduce the DeFi risk levels. In a press release, the Defi platform announced that it had raised the funds from popular names like Spark Digital Capital, Alameda Research, Solidity ventures, 3 Commas, Black Edge Capital, Alpha Chain, and Cluster Capital.
The statement hasn’t clarified when the will Union launched the product precisely as it reads that it will be “in the upcoming months.” It will include a decentralized finance platform that will incorporate the advanced risk management and protection framework. Union noted that the DEfi industry spiked in 2020 especially in the past few months when the total value locked in various projects surged from $1 billion to over $12 billion. However, the rapid increase highlighted several issues in the industry like scalability, security, and high transaction costs. The entire DeFi ecosystem could enter the next phase of growth if these problems are addressed adequately.
The statement clarified that the Union’s upcoming product aims to tackle the issues with a few new tools. These include a “bundled protection with different layers of protection, a truly decentralized protection platform not bound by a ‘member-only’ model, without KYC requirements and paired with an effective governance process, and a decentralized secondary protection market to manage risk.”
Union’s project lead Michael Beck, commented on the fundraising saying that the company is amazed by the incredible support that it received from such notable names. Beck added further that they will aim to strengthen the role in the Defi market place by creating more protection and a new ecosystem that will allow people who participate in the industry to sleep well at night.
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