Media: Polychain and Three Arrows Invest Seven-Figure Sum in DeFi Project KeeperDAO

KeeperDAO, a DeFi-sector liquidity provider, attracted more than $1 million in seed funding. The funding round was led by Polychain Capital and Three Arrows Capital. The Block reported, citing co-founder Tian-tian Kullander.

In December, the crypto-trading firm Amber Group and research company Talo Systems announced the creation of the joint project. KeeperDAO’s aim is to sustain liquidity for DeFi projects using funds contributed by their users.

“The growth of the DeFi sector increases the need for external liquidators and arbitrageurs to ensure orderly markets. With a system that strengthens cooperation among custodians, lending platforms and margin-trading exchanges, over time they will be able to reduce collateral requirements,” said Kullander.

During periods of volatility, the project will allow users to earn higher profits than by locking funds in DeFi projects, KeeperDAO believes. In the absence of strong market moves, user funds are planned to be directed to lending platforms such as Compound and dYdX.

Currently, KeeperDAO’s liquidity pool stands at 4,474 ETH (about $1.5 million). To govern the protocol, the startup plans to issue its own token under an incentive program. Details on the launch timeline were not disclosed.

Earlier, Ethereum co-founder Vitalik Buterin said about the undervalued risks of smart contracts in the DeFi ecosystem.

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