zkLend, a secured lending protocol based on zero-knowledge accumulation product StarkNet, announced that it raised $5 million in a funding round.
Delphi Ventures Leads $5 Million Funding Round
Delphi Digital’s venture capital arm led the funding round, including Starkware, Three Arrows Capital, Alameda Research, MetaCartel DAO, Amber Group, Genesis Block Ventures and others. The funds will be used to launch the company’s core products and grow its technology, marketing and business development teams.
“Money markets are an essential component of the [decentralized finance] financial stack with a strong match between the product and the existing market. Couple a money market with the technical prowess of StarkNet’s decentralized ZK rollup, which is live and proven, and you have zkLend,” said Tom Shaughnessy, co-founder and partner of Delphi Ventures in a statement.
What is zkLend?
zkLend describes itself as an L2 money market project built on StarkNet, but essentially the project has two main products. Artemis, a permissionless retail lending offering, will launch in Q3 2022. Artemis allows users to deposit assets to earn yield and borrow using those assets as collateral. Deposits from multiple investors are collected into pools to enable the loans, which have real-time liquidity and variable interest rates.
The project will also launch an institutional product called Apollo. This product is primarily aimed at institutional investors to attract more traditional capital into the cryptocurrency space. Unlike Artemis, Apollo requires interested companies to meet AML and KYC standards. Transaction fees will be much lower than on the Ethereum network because zkLend is built on StarkNet.