On November 26, investment company DWF Labs, known as a market maker in the crypto market and an active participant in Web3, announced the launch of a new $75M fund. Its goal is to accelerate the development of the next generation of blockchain financial infrastructure.
The funds will be directed to support teams working on improved yield, lending, and liquidity systems. This is especially relevant amid growing interest from institutional investors who are pushing DeFi to the next stage of growth.
According to DWF Labs, the fund will focus on blockchain projects creating a new type of decentralized exchange — dark pool perpetual DEX. Decentralized lending markets and products with fixed income or yield-generating assets will also be prioritized. The fund will focus on projects operating in the Ethereum, BNB Chain, Solana and Base ecosystems.
The company is confident that now is the right time. Blockchain projects are on the verge of massive growth.
DWF Labs bets on those solving real DeFi problems
The fund will support teams that already have a working MVP, an unconventional value proposition, and the ability to quickly adapt and scale their technologies to meet growing institutional demand.
At DWF Labs they emphasize that they are not just looking for updates to old protocols, but for teams that truly solve fundamental DeFi challenges, from liquidity and settlements to lending and on-chain risk management.
The main goal of the fund is to find promising projects at an early stage and help them reach technological and commercial maturity as quickly as possible.
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Managing partner DWF Labs Andrey Grachev emphasized in his statement that DeFi infrastructure must be ‘truly useful’ if it is to attract interest from major players:
‘DeFi is reaching the institutional level. We see real demand for infrastructure that can handle large volumes, protect order flow, and provide stable returns. This fund is created to support those building systems that will define the open finance market for the next 10 years.’
But it’s not just about money. Teams that join the fund’s portfolio will receive real support: live liquidity, a clear go-to-market strategy, and help with launching.
In addition, they will have direct access to market makers, infrastructure providers, and institutional players.
DWF Labs also promises to leverage its global resources so projects not only launch but start growing rapidly. According to Grachev, in an environment where liquidity and reach are at stake, such support can make all the difference.
According to Andrey Grachev, such support gives startups an ‘unfair advantage’, especially when access to audience and liquidity is as important as the product itself.
Institutions are pushing DeFi toward mass adoption
The DeFi segment continues to gain momentum. According to DeFiLlama, the total TVL of all protocols grew by 2.67% in a day and reached $121.19B.
The total capital in stablecoins now amounts to $305.36B. Decentralized exchanges processed $10.74B in the last 24 hours. In on-chain futures, turnover was even higher — $41.39B in a day.
At the summer peak of 2021, TVL almost reached $177.5B. Interestingly, last month the market was already approaching this level: before the October crash, the figure hovered around $165B.
Although DeFi was conceived as an alternative to traditional banks, it is becoming increasingly clear that institutions will be the ones to bring it to mass adoption.
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Sergey Nazarov, co-founder of Chainlink, in a conversation with Michaël van de Poppe (MN Capital) estimated that DeFi has already passed about 30% of the way to mass recognition. According to him, by 2030 the industry could become part of the mainstream financial system.
Nazarov believes that DeFi will reach 50% adoption when there is a clear understanding of future regulation. And the 70% mark will be surpassed when the technology becomes simple enough for major players to invest their own and clients’ funds without fear.
At the recent SmartCon conference, the institutional theme was especially prominent. Most sessions were aimed at this segment. Nazarov noted that as the market matures, interest from large organizations in blockchain not only remains but is accelerating.
He also added that as soon as there is a clear understanding in the US of how to regulate DeFi, other countries will quickly pick up the initiative. It is important for them to remain compatible with the US financial system.
