DWF Labs rolls out $75M DeFi-focused investment fund

Source Cryptopolitan

On November 26, Crypto market maker and Web3 investment firm DWF Labs announced a new $75 million DeFi-focused fund aimed at accelerating the next generation of on-chain financial infrastructure. DWF Labs plans to support teams developing enhanced yield, credit, and liquidity systems as institutional demand drives DeFi into its next phase.

According to DWF Labs, the $75 million fund will focus on blockchain projects that create dark pool perpetual DEXs. The fund will also concentrate on decentralized money markets, and fixed-income or yield-bearing asset products across Ethereum, BNB Chain, Solana, and Base. The firm believes that blockchain projects are poised for significant growth.

DWF Labs targets builders solving core DeFi problems

DWF Labs said that the fund will focus on teams with a working MVP, a distinct and creative value proposition, and the capacity to ship, adapt, and scale their technology to meet growing market and institutional demands. DWF Labs emphasized that it is seeking founders who can solve actual structural issues in liquidity, settlement, lending, and on-chain risk management rather than focusing on minor tweaks to current web3 protocols. 

According to DWF Labs, the goal is to identify high-conviction teams early on and support them in achieving technological and commercial maturity quickly.

In the announcement, Andrei Grachev, Managing Partner of DWF Labs, stressed the importance of developing DeFi infrastructure “with real utility” that can meet institutional demand.

“DeFi is entering its institutional phase. We’re seeing real demand for infrastructure that can handle size, protect order flow, and generate sustainable yield. This fund is designed to support founders who are building the systems that will define the next decade of open financial markets.”

Andrei Grachev, Managing Partner of DWF Labs.

The Web3 investment firm guarantees practical ecosystem support in addition to funding. According to DWF Labs, portfolio teams will have access to active TVL and liquidity provisioning, a useful go-to-market strategy, and execution assistance. The portfolio teams will also gain connections to market makers, infrastructure suppliers, and institutional partners.

DWF Labs stated that it will utilize its global communications and marketing capabilities to help the teams increase visibility and accelerate user acquisition. Grachev explained that the deployment of global communications and marketing capabilities will give entrepreneurs “an unfair advantage in a market where distribution and liquidity matter as much as product.”

Institutional momentum pushes DeFi toward mainstream adoption

According to on-chain data from DeFiLlama, the total value locked (TVL) across all DeFi protocols is currently at $121.194 billion, representing a 2.67% increase over the previous 24 hours. On-chain data reveal that stablecoins have an accumulated market capitalization of $305.356 billion, and DEXs process $10.739 billion in daily volume. On-chain perpetuals recorded $41.394 billion in 24 hours.

The on-chain data indicate that the DeFi TVL reached a peak of almost $177.5 billion during the “DeFi Summer” of 2021. The DeFi TVL nearly hit that record once more last month after hovering around $165 billion before the market crisis on October 10.

Despite DeFi initially being intended as a specialized field that offers a decentralized alternative to traditional banking, leaders such as Sergey Nazarov, co-founder of Chainlink, believe that centralized institutions will be crucial to the industry’s mainstream adoption.

In an interview with Michaël van de Poppe, the founder of MN Capital, Sergey Nazarov said DeFi is already 30% of the way to becoming widely accepted. He added that DeFi may be completely embraced worldwide by 2030.

According to Nazarov, DeFi will achieve 50% mass adoption once the regulatory environment becomes clear. He added that DeFi will reach 70% after the technology and infrastructure are direct and effective enough for institutions to invest their money and client funds in DeFi.

On Wednesday, Cryptopolitan reported that Nazarov stated that Institutional participation in Web3 has grown, and most of the sessions at the most recent SmartCon had a clear institutional focus. He claimed that as the industry has developed, large financial institutions are increasingly utilizing blockchain technology, and adoption is accelerating.

According to Nazarov, DeFi clarity will quickly extend outside of the U.S. He added that many governments adopt U.S. methods to be compatible with the U.S. financial system.

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