A Middle East-based decentralized finance (DeFi) mutual fund raised about $ 10 million in just two weeks, highlighting the huge demand for these investment vehicles.
On April 13, the United Arab Emirates-based Sheesha Finance DeFi platform announced that it collected a total of $ 9.44 million. It did this through an innovative first token distribution mechanism known as the Liquidity Creation Event (LGE).
Participants in LGE can request liquidity provider tokens to stake for the platform’s SHEESHA tokens. According to the announcement, LGE allowed micro-investments as low as 0.0001 ETH. Both large and small investors participated in this step.
Contributors submitted 3,171 ETH worth a total of $ 6.35 million and 7,769 Binance Coins (BNB) worth $ 3.08 million.
Sheesha Finance founder Saeed Hareb Al Darmaki received strong support from the DeFi community. Saeed emphasizes at this point:
“With the strong support of the DeFi community, strategic advisors, and established partners, we can provide the best APM options for our ecosystem participants, while navigating reputable projects in the DeFi space.
Saeed likened the platform to a “DeFi ETF” in a blog post in early March. The reason for this is to make DeFi more accessible to mainstream investors.
The announcement also highlights that SHEESHA token prices will be determined by a smart contract. The aforementioned BNB and ETH will be based on the current SHEESHA amount. The team will also create a DAO for decentralized governance.