- Ion Protocol has raised an extra $4.8 million to support the development of Nucleus, their native yield platform.
- Rollups and appchains can produce native revenue for users connecting assets to their networks thanks to Nucleus.
The $7 million overall funding for Ion Protocol, a liquidity protocol for staked and restaked assets, has been increased by an additional $4.8 million from a variety of investors, including Robot Ventures, Gumi Capital Cryptos, BanklessVC, NGC Ventures, Finality Capital, and SevenX Ventures are among the investors.
The newly raised funds will be utilized to support and advance Nucleus, a native yield primitive intended to assist in resolving rollup and appchain monetization issues and maybe facilitate the development of new decentralized application use cases inside their respective ecosystems.
As per the team’s statement, any network can offer its customers native yield for assets backed by ETH, BTC, and USD through Nucleus, hence offering a financial incentive for making deposits on the networks. By bridging into the network environment, users can create returns on a wide range of assets natively.
For every cryptocurrency investor, engaging in the staking and restaking ecosystem to produce return has grown in importance and will continue to do so, according to Nucleus co-founder Chunda McCain. Any network that is unable to provide its customers the choice to enhance the value of their bridged assets and introduce fresh revenue streams into their ecosystem is losing out on potential profits. With the help of our plug-and-play platform, rollups can enhance their current ecosystem designs and business models while attracting consumers to deposit money.
How is Nucleus operated?
Although the growing number of Ethereum rollup solutions makes transactions cheaper and faster, they frequently force users to give up the 3-4% return on staking yields on the mainnet. Typically, bridged assets have a large opportunity cost because they don’t generate interest. In an effort to solve this, Nucleus said that in the upcoming months, it will offer a default yield for customers across over 20 distinct rollups and appchains.
The team stated that Nucleus focuses on the infrastructure-sourced yield to reduce risk and sources the yield from safeguarding infrastructure items like bridges and oracle networks, providing the income to networks, apps, and users.
It makes this claim by providing funding to the lending platform of Ion Protocol and reallocating idle borrower money to power sophisticated counterparties that facilitate the smooth transfer of liquidity from chain to chain through bridges and chain abstraction protocols.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
