Appetite for DeFi is on the rise again as blue chips rally and yield-generating strategy-sharing platforms, like Enso, are on the rise.
Enso, a platform where users can share return strategies, raised $ 5 million on April 13 from leading U.S. venture capital firms, including Polychain Capital and Multicoin Capital.
Synthetix (SNX) Founder Kain Warwick, Aave Stani Kulechov Founder, Dfinity COO Artia Moghbel and other prominent Angels took part in the round.
The high profile fundraising round comes as Yearn.finance (YFI) hit a new high above $ 50,000.
Why is the demand for performance protocols increasing?
Protocols like YFI are seeing significant demand again as blue DeFi chips begin to rally with Bitcoin (BTC) and Ether (ETH) reaching record highs.
The appetite for high-risk, high-reward gaming is clearly increasing as the cryptocurrency market as a whole enters price discovery.
The term price discovery refers to a technical trend when the price of an asset or the valuation of a market hits a new all-time high.
From late February to mid-March, the total locked-in value (TVL) of DeFi asset management protocols fell quite significantly, from $ 4.3 billion to $ 2.7 billion.
However, since late March, the DeFi asset management industry has started to gain momentum, pushing demand towards protocols like YFI, where users can earn returns on their assets.
Naturally, the resurgence of asset and return management strategies in DeFi has led to a spike in venture capital interest.
Enso, for example, recently raised $ 5 million in a round led by leading venture capital firms such as Polychain Capital Multicoin Capital, with assets under management (AUM) exceeding $ 1 billion. .
Enso gives users access to alpha yield farms, batch yield farms, batch purchase of MAs, flash trades, warranty and restructuring, allowing users to maximize way they gain performance across various protocols.
Spencer Applebaum, a partner at Multicoin Capital, who has been praised by top fund managers such as Three Arrows Capital CEO Su Zhu for being one of the top performing funds in recent months, particularly highlighted how Enso makes it possible users to easily tap into various DeFi returns. strategies.
“We are extremely happy to support Connor, Gorazd and the rest of the Enso team as they work to open up DeFi Asset Management by removing whitelists and curation, and enabling composability with all DeFi networks. Enso is fully customizable and allows anyone to become a fund manager with the click of a button. »Spencer Applebaum, partner at Multicoin capital.
The growing interest in yield-generating protocols, like YFI, and yield strategy-sharing platforms, like Enso, indicates that there is a strong demand for yield in today’s market landscape.
Has DeFi summer arrived?
It remains to be seen whether the growing demand for yield-producing platforms and protocols would mark the start of the “DeFi summer”.
At the peak of the strong technical momentum that major DeFi tokens have experienced, general sentiment around DeFi has been overwhelmingly positive lately.
ISIC explaining @MakerDAO and the benefits of DeFi for fund managers
Maybe that’s why Boomer’s DeFi tokens increased + 20% yesterday pic.twitter.com/t7AHnHXo4v
– Mira Christanto (@asiahodl) April 16, 2021
Citibank published an article on April 16 titled “Future of Money” describing the benefits of DeFi to other fund managers.
The recognition of the momentum and the need for DeFi by traditional financial institutions could be the catalyst to enable the second wave of capital inflows into the DeFi market in the coming months.