On September 21, APY.Finance, a yet-to-launch DeFi yield farming aggregator, announced the completion of its seed funding, collecting $3.6 million in total, CoinDesk reported.
According to the report, the funding round saw participation by investors such as Arrington, XRP Capital, Alameda Research, Cluster Capital, and CoinGecko. The assets will be used to develop an automated investment service platform that will allow users to earn yields across various DeFi products.
Yield farming is the concept of earning crypto rewards by lending your own digital assets through smart contracts and providing liquidity for various Decentralized Finance products. APY.Finance is said to automate its platform in order to successfully calculate the best risk-reward ratios of different crypto markets in order to provide the highest possible returns to its users.
“Yield farming today presents users with a high barrier-to-entry, cost, and risk,” said Will Shahda, CEO of APY.Finance, CoinDesk reported. “APY solves these pain points by giving users a low-cost frictionless way to pool their liquidity and allocate it across a portfolio of strategies.”
With the funds gathered in the seeding round, the organization will target a mid-October full-scale rollout of its platform. When it becomes available, users will be able to easily route their funds to a select portfolio of the greatest yield farming strategies and onboard them, splitting the gas fees between each other and using the risk-assessment tools of the platform to distribute their liquidity.
The organization supposedly plans to issue a native governance token, dubbed APY, to assist decision making on the protocol. According to the report, a public sale of APY tokens is expected to start this month in an Initial DEX Offering, an ICO variation that was just recently introduced to the blockchain community.