In the wake of the multibillion-dollar FTX crypto exchange’s demise, the potential of decentralized financial systems has once again come under scrutiny. Despite efforts to solve the issue of fragmentation across different blockchains, decentralized finance (DeFi) is still in its early stages of development.
With a $70 million valuation, Shima Capital led a $5.4 million investment round for Quasar Finance, a decentralized asset management protocol that employs the Inter Blockchain Communication (IBC) technology published by the Cosmos blockchain ecosystem. To facilitate token and data transfers between chains, the protocol enables users to construct and join vaults.
In addition to CIB and Osmosis’s co-founder Sunny Aggarwal, the round featured investments from Polychain Capital, Blockchain Capital, HASH Capital, and CIB.
According to a press statement given to CoinDesk, the funds would be used for “product development and scaling out the team.”
Quasar intends to provide structured investment solutions for DeFi customers, and they will begin with an automatic rebalancing index of the Cosmos network that allows for the streaming of assets. On February 10, following several months of internal testing, Quasar will launch its public testnet.
Quasar’s innovative approach to creating an approachable DeFi experience while still adhering to industry best practices around security and usability standards set forth by leading blockchain projects like Cosmos Network itself has been validated by a recent investment from Pantera Capital, making it an attractive proposition not only for institutional investors but also for individual users who are interested in exploring the new possibilities offered by this rapidly evolving space. With this team’s dedication to developing novel solutions, the future may bring about a dramatic shift in the way people engage with digital assets.
Quasar is a decentralized finance (DeFi) protocol developed on top of the Cosmos Network, an open-source blockchain project meant to allow multiple blockchains within a single ecosystem to communicate with one another. The platform provides users with access to a variety of financial services, including lending, borrowing, asset management, and tokenization, all through a single unified interface powered by smart contracts operating on Cosmos’ Tendermint consensus engine. It also offers liquidity mining opportunities via staking rewards paid out in QSR tokens, which can then be used to access additional features such as yield farming or trading against other cryptocurrencies listed on exchanges linked via IBC cross-chain bridges with the Ethereum or Binance Smart Chain networks.