Defi startup Moma Protocol has completed a private funding round to create a decentralized liquidity solution that aggregates multiple markets. Boosting defi liquidity has become an obsession among crypto projects emerging onto the scene, with increasingly novel solutions proposed.
While most projects are content with achieving deeper liquidity, Moma is intent on going to infinity – and possibly beyond – with its protocol for lending the long tail of defi assets. Its proposal has clearly resonated with blockchain VCs, who put up a total of $2.25 million to turn this dream into reality. Fundamental Labs and SevenX Ventures led the private round.
AU21 Capital, Blocksync Ventures, BuildingBlocks, Coins Group, Consensus Investment, DFG Capital, FBG Capital, Finlink Capital, Lotus Capital, Magnus Capital, Moonrock Capital, and many more investment firms also took part.
Who’s Yo Moma?
The galaxy brain team behind Moma Protocol includes Master’s graduates from Fudan University with extensive experience in blockchain development and Ethereum-based defi. CEO Ocean Liao is a serial entrepreneur in the blockchain industry who’s led such reputable projects as Gravity, Lichang (1 million users), and TokenUp wallet, and is a leading light of China’s crypto community.
According to Ocean, Moma’s goal is to “create an expandable, scalable and flexible infrastructure for the defi world in 5-10 years, in a way that everyone can freely participate.”
“I am happy to be able to drive Moma Protocol to explore the future with its infinite liquidity-generating,” added the CEO, whose CMO is the co-founder of Hong Kong crypto fund Coins Group.
Blockchain VCs Are Bullish on Moma
Moma Protocol’s take on defi liquidity and lending has clearly resonated with blockchain investors, and not just because they’re enamored with all things defi right now. As FBG Capital founder Shuji Zhou explains, “The defi market has seen explosive growth over the past year, with more and more assets being swept up in the wave.
“Moma Protocol meets the lending needs of long-tail assets by providing a proprietary smart contract factory that combines the strengths of Uniswap and Compound, to produce an unlimited number of customizable lending pools.”
According to Zhou, this brings more assets into the current lending market, which will in turn increase the liquidity and scalability of decentralized finance. The magic that makes all this happen is a set of smart contracts that allow for far greater lending liquidity than current frameworks allow. This will enable even traditionally illiquid assets – i.e. anything outside the top 100 by market cap – to enjoy levels of liquidity normally synonymous with defi blue chips.
The beta of Moma Protocol’s solution has already been deployed, and appears to have been pivotal in convincing VCs to invest in the project. Now it’s a case of waiting for the alpha to launch in Q2 of 2021. With a runway in place, courtesy of the $2.25M round, Moma’s attention turns to building its community ahead of an anticipated public token sale.