Researchers from Stanford University and the University of California, Berkeley contributed to the creation of the crypto-asset lending platform.
Protocol for Decentralized Lending Pledge has secured $3 million in investments for its cross-chain ecosystem focused on long-term financing, demonstrating the sector’s continued innovation.
DHVC, a Palo Alto-based venture capital firm, led the investment round, with participation from U.C. Berkeley professor Gary LaBlanc and Stanford University community members Ray Wong and Torsten Wendl. The funds will go toward Pledge’s goal of becoming a leading crypto-asset lending platform, paving the way for tokenized real-world financial assets.
Pledge was developed by a group of Stanford University blockchain researchers, including professor David Tse, Nicole Chang, Ray Wong, and Torsten Wendl. Professor Gary LaBlanc, who was previously mentioned, also contributed to the protocol.
Pledge, which uses Binance Smart Chain, aims to facilitate long-term financing for crypto holders, which the researchers claim has yet to be addressed in the industry. The protocol accomplishes this goal by allowing users to diversify their portfolios with non-crypto assets while remaining unaffected by interest-rate volatility.
Pledge Tokens, or PLGR, with a total supply of 3 billion, power the protocol. There is currently no market data for PLGR.
This year, the DeFi lending market has exploded in popularity, attracting a flood of new users with the promise of higher yields and increased access to new markets. While Aave continues to dominate the DeFi lending market, several protocols have launched in the last year, each with its own value proposition.
According to industry data, the total value of DeFi lending markets is currently just under $44 billion. This represents slightly more than half of the total decentralized finance market.
DeFi’s expansion has drew unwanted attention from regulators, who are increasingly concerned about investor protections and whether certain assets are subject to federal security laws. As we previously reported, the Securities and Exchange Commission of the United States has warned cryptocurrency exchange Coinbase that its proposed yield program violates securities laws.