Helix Labs has raised $2 million in a pre-seed funding round, valuing the company at $40 million.
The funding was led by Tribe Capital, EMURGO Ventures, Taureon Capital, LD Capital, and Double Peak Group, according to a company press release. The goal of the funding is to bring more liquidity from Cardano (ADA) into decentralized finance.
Helix Labs’ main focus is to develop a protocol that allows Cardano holders to stake their tokens while still using them in DeFi. Normally, when you stake a cryptocurrency, you lock it up to support the network and earn rewards in return. However, this often means you can’t use your tokens elsewhere. Helix Labs aims to change that.
You might also like: Bitfarms and Riot reach settlement, reveal board changes
Cardano’s $12b liquidity
According to the release, Helix Labs’ technology enables ADA holders to stake their assets and receive a “liquid staked ADA” token in return. This token can then be used across various DeFi platforms, unlocking approximately $12 billion worth of ADA liquidity that was previously untapped.
The company is joining Movement Labs’ Move Collective accelerator program, which aims to help them expand Cardano’s liquidity into DeFi ecosystems. This means ADA can now be used for lending, trading, and other financial activities that were previously unavailable.
Helix Labs offers three main products to cater to blockchain enthusiasts. The first product, Helix Vault, integrates staking protocols from various blockchains, including Cardano, allowing users to maximize their asset earnings.
The UniRollup L2 platform facilitates liquid-staked ADA interaction with various DeFi protocols, making DeFi activities more accessible for ADA holders. Additionally, the OmniVM AVS product supports the launch of new projects by providing liquidity and assistance for emerging Layer-3 ecosystems.
You might also like: Crypto products see surge in inflows fueled by FED rate cut
