DeFi startup Davos raises $500k in a pre-seed round from Polygon Ventures and Sandeep Nailwal

• ByStartupStory     |    January 19, 2023

Sandeep Nailwal, a co-founder of Polygon, and Polygon Ventures contributed $500,000 to the pre-seed fundraising round of Davos, a novel Decentralized Finance (DeFi) platform. Along with collateralized borrowing and staking for MATIC tokens, it will also introduce a brand-new, innovative stable crypto asset. Users can repay debts and gain the stable assets by exchanging equivalent value for the liquid staking token ankrMATIC, according to a statement from the business. According to the statement, the stable assets, also known as DAVOS, can be incorporated into various protocols, pools, and decentralized exchanges. DAVOS is equipped with capabilities that enable cross-chain operability as well as interoperability with different crypto pools. This will enable the firm to take advantage of automated farming yields and perhaps provide users with larger compounding profits, said Davos. 

This is accomplished by adding a brand-new stable asset along with collateralized borrowing and staking. Users can borrow against their staked MATIC, pay back their loan and earn DAVOS Stable Assets, collateralize their MATIC tokens for an equal-in-value liquid staking token called ankrMATIC, and integrate their collateralized MATIC tokens into other protocols, DEXs, and pools. “The main objective of Davos is to give users access to a variety of DeFi protocols, platforms, and pools while simultaneously releasing the liquidity of their staked assets. A new stable asset called “DAVOS” will be developed as a way to encourage participation and acceptance and give cryptocurrency owners access to a new decentralized scale economy “Varun Satyam, the founder and CEO of Davos, said.

“The overarching goal of Davos is to allow users to get exposure to multiple DeFi protocols, platforms, and pools all the while unlocking the liquidity of their staked assets. The creation of a new Stable Asset – ‘DAVOS’ – will serve as a means to incentivise participation and adoption and enable crypto holders to become a part of a new decentralized economy of scale,” said Varun Satyam, Founder and CEO, Davos. 

The total value locked (TVL) across DeFi has recently decreased from all-time highs of almost $180 billion in late 2021 to about $41 billion. Sandeep Nailwal and Polygon Ventures have been aggressively funding and mentoring Web3 entrepreneurs despite the 77% decline. In the last few weeks, Polygon Ventures has made payments to companies including SYKY, a platform for high-end fashion technology, and Arrakis, a decentralized multichain market-making protocol. Beacon, a Web3 accelerator that intends to fund and train early-stage Web3 companies, was introduced by Sandeep about a month ago.

Polygon Ventures and Sandeep Nailwal are betting on the startup’s ambition to create an ecosystem around more convenient access to reliable assets, liquid stacking, and collateralized borrowing and lending with their new investment in Davos. According to reports, Davos and Sikka have united to increase their community’s size and exposure to cryptocurrency liquidity.

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