The crypto investment firm Dragonfly Capital leads a $3.5 million seed funding round for crypto credit protocol Debt DAO.
Other funding round participants include GSR, Numeus, and Fasanara Capital. Among the six angel investors supporting the project were ex-Coinbase CTO Balaji Srinivasan, Chainlink Labs’ David Post, and TrueFi’s Ryan Rodenbaugh.
“Right now, debt is one of the big missing pieces from the DeFi universes, and Debt DAO is one of the strongest teams in this space tackling that problem. Debt DAO will pull the entire DAO financing ecosystem forward,” states Haseeb Qureshi, general partner, Dragonfly Capital.
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Debt DAO, via its “Spigot” smart contract, finances revenue-centric “cryptonative entities,” such as protocols and DAOs. Debt DAO states its Spigot can repay lenders automatically via securing on-chain cash flows of the borrower.
Smart contracts, DAOs, NFTs, and DeFi are Dragonfly Capital’s prime focuses. Dragonfly Capital’s oversubscribed $650 million venture fund closed in May, The Crypto Times reported.
