Interest in decentralized projects is growing

Interest in decentralized projects based on the Ethereum blockchain has become a magnet for Silicon Valley investors. Projects such as Compound and MakerDAO have attracted tens of millions of dollars in investment.

Compound – $ 25 million

One of the most popular Ethereum-based applications, Compound, has secured $ 25 million in funding. Investors in the project include important names such as the investment firm a16z, Paradigm, Bain Capital Ventures and Polychain Capital.

Compound is a decentralized platform that allows users to borrow Ethereum-based tokens such as ETH, USDC, BAT and 0x.

Compound CEO Robert Leshner explained that his company’s goal is to be integrated with crypto exchanges, custodians and major portfolios by the end of 2020.

This means that regular users may soon be using platforms like Coinbase or Kraken to borrow cryptocurrencies they own.

MakerDAO – $ 15 million

The investment company a16z, created by Andreessen Horowitz for the fintech sector, focused on decentralized projects. Last September, a16z invested $ 15 million in the blockchain MakerDAO project.

Katie Haun, general partner and co-founder of Crypto a16z, explained the investment:

“As a pioneer in innovation and a major player in the stable cryptocurrency space, MakerDAO represents a very compelling opportunity in the crypto space. MakerDAO’s technology, ecosystem and talent have put the theory into practice and will make a major contribution to the future of the crypto economy. ”

The interest in decentralized projects stems largely from the fact that it offers significant profits for users. If the bank interest amounts to only 2%, those who choose to invest in crypto and borrow them can get profits of over 8%.