According to the latest reports, Formation Fi has confirmed that it has successfully completed a strategic sale round. According to Formation Fi, it has generated around $3.3 million from the strategic sale. The firm has reported that with the generated funds, it aims to revolutionize the construction of the decentralized finance (DeFi) portfolio.
The companies that participated in the funding round as the leads of the program included Polygon, Synthetix, and Bancor. These companies are one of the leading entities in the cryptocurrency industry. All three companies currently have total value locked (TVL), which is worth more than $6 billion.
Apart from the initial three contributors, the protocol also received the help of several venture firms. Names of some of the venture capital firms including Brilliance Ventures, Shima Capital, GBV Capital, GenBlock, Momentum 6, X21 Digital, AU21. Then there are firms such as Spark Digital Capital, Kosmos, and Kinetic.
18 more investors wanted to contribute in the funding round but were not able to do so as the program ended up getting oversubscribed. The contributors were interested in taking part in the development of Formation Fi. The firms were focused on its protocol, which would be guided by the risk-parity movement’s principles.
Furthermore, the project would offer an algorithmic platform for yield management and the first chain-agnostic. The firm has revealed that all the features being offered by the platform are the ones being practiced at hedge funds considered at the top of Wall Street.
Formation Fi has revealed that with the generated funds, it will be able to achieve new heights in the decentralized finance (DeFi) sector. Formation Fi aims to revolutionize the farming capabilities in the DeFi sector and has dubbed it smart farming 2.0.
With the new protocol, it will be completely up to the users to tailor for themselves, the amount of exposure they would want for the new smart farming 2.0 mechanism.
The new mechanism will help users reduce the risks involved in farming due to the bearish and the bullish cycles. Formation Fi has revealed that it is aiming to form a founders’ club for the new protocol. The protocol aims to bring onboard the companies and protocols that were the pioneers in the decentralized finance (DeFi) sector.
The firm wants to perform its duties and acquire guidance from the veteran firms in the DeFi sector for a longer-term. The aim of the Formation Fi protocol is to enhance the yield farming portfolio by offering a risk-adjusted portfolio to ensure better management. With the help of the new protocol, Formation Fi aims to facilitate yield farming on cross-chains.
Once launched, Formation Fi would have its own native token called FORM that the users will be able to use for multiple utilities.