Decentralized finance lending protocol Greenwood raised $ 2 million in a fundraising round led by Polychain Capital in its proposal to optimize interest rates for borrowers.
The firm announced in a post shared with The Block that other participating investors include Blockchain Capital, Robot Ventures and Divergence Ventures.
Greenwood also received individual contributions from the DeFi lending protocol of Ricky Li, co-founder of crypto trading company Altonomy, and Stani Kulechov, founder and CEO of Aave.
What does the protocol offer?
Greenwood’s phase 1 of the currently active but not yet audited V2 protocol offers a series of smart contracts to borrow from Aave or Compound in Ethereum, depending on which protocol has the lowest instant annual percentage rate.
The goal is to allow users and dApps to borrow crypto assets through DeFi at the lowest interest rate without calculating the interest rates themselves.
With the new rising capital, Greenwood’s CEO, Nathaniel Mendoza, said the company plans to hire additional staff to help establish the next three phases of the V2 protocol.
“Some phases will move traditional financial instruments to Ethereum, while others will offer new functionality only possible on blockchain,” the firm said in the announcement.