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On-chain crypto index fund builder Index Cooperative raised $2.25 million in funding because the decentralized autonomous group (DAO) prepares to fend off one other venture’s “vampire assault.”
Sequoia Capital India, Blockchain.com Ventures and White Star Capital participated within the funding spherical. It closed earlier than information broke Tuesday that Enso Finance, a “social buying and selling” competitor, would fork Index Coop and different DeFi tasks’ code after which incentivize its customers to maneuver their property over.
Success would give Enso Finance a slice of Index Coop’s almost $500 million pie. Alternate traded fund-like tokens just like the DeFi Pulse Index, which give its holders broad publicity to DeFi tokens’ value actions, have helped the protocol rack up over $2 million in lifetime charges.
Core contributors on the DAO instructed CoinDesk they aren’t frightened; Index Coop has fended off such “vampire assaults” earlier than, like In April when BasketDAO attacked.
“For the week or two that it was occurring, we noticed a drop with like 300 customers, however I imply, we add in all probability 400 customers in every week. It was type of just a bit blip,” core contributor Simon Judd instructed CoinDesk.
Learn extra: DeFi Index Undertaking to Launch With Vampire Assault on Index Coop, Others
Throughout its Metaverse, leveraged ETH and leveraged BTC methods, Index Coop’s household of “funds” maintain almost $420 million in crypto property. That determine has often eclipsed $500 million however the latest market sell-off pushed it down.
“We’re including 200, 300, 400, 500 folks holding our indexes. And that’s occurring no matter what’s occurring out there,” Judd instructed CoinDesk. He mentioned that over 31,000 wallets are presently plugged in.
The expansion highlights budding demand for crypto-native funding merchandise that mimic conventional automobiles. Passively managed by market situations, Index Coop’s crypto funds generate $17,222 in annual charges, Judd mentioned.
See additionally: Index Coop, Bankless DAO Workforce As much as Launch New Crypto Index
“In conventional markets passive merchandise make up an outsized share of holdings for buyers in search of diversified, no-frills publicity with low charges; we imagine the same pattern will happen for crypto,” Anandamoy Roychowdhary, Principal at Sequoia India, mentioned in an announcement.
Index Coop padded its treasury earlier this yr with a $7.7 million funding from Galaxy Digital and 1kx.
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