The NEAR protocol has a new money market platform with the launch of Burrow, which announced a $5 million raise backed by Dragonfly Capital, ParaFi Capital, Jump Crypto, QCP Capital and others on Wednesday.
- Burrow is a non-custodial liquidity pool platform that functions as a decentralized money market, allowing users to supply and borrow assets for trading.
- It comes as NEAR and a slew of next-gen blockchains look to stand up vibrant decentralized finance (DeFi) ecosystems – often with the help of hefty incentive programs.
- Other investors in the Burrow round include Lemniscap, Mentha Partners, Warburg Serres Investments, DeFi Capital, D1 Ventures, GFS Ventures, SevenX Ventures and Metaweb Ventures.
- The platform will use the funds to bootstrap its initial trading liquidity.
- Given its use of the NEAR blockchain, Burrow says it will have “near-zero transaction costs” and fast transaction closing time, solving two complaints that many users have when trading on other blockchains.
- “We believe decentralized money markets act as a cornerstone for DeFi given their composability and utility,” Anjan Vinod, Vice President at ParaFi Capital, said in a note to CoinDesk. “By building natively on NEAR, we believe Burrow can integrate with other NEAR-native DeFi primitives including DEXs, liquid staking solutions, and stablecoins.”
- Burrow currently supports NEAR, DAI, USDT, USDC, ETH and wBTC for deposits and wrapped assets like stNEAR, stETH, stSOL and stFTM for staking.
- Burrow says that it will launch a governance token staking program in its second month. If users stake the native BRRR token, they will receive xBRRR which allows them to vote on DAO governance proposals.
Read more: Near Raises $150M From Major Crypto Investment Firms