Tim Draper is supporting a project which has been able to raise $6.5 million in a token sale. The sale was for the governance token of a DeFi space known as the DeFi Money Market (DMM).
According to DMM Foundation, DMM offers a trust-minimized, transparent, and permissionless environment on the Ethereum blockchain empowering users worldwide to earn a positive yield via digital assets backed by a basket of assets brought on-chain into the DeFi ecosystem.
DMM Foundation claims that assets that back DMM don’t fluctuate in the interest rate they pay, thereby making users to find stability in the cryptocurrency space characterized by volatility. DMM’s $8.8 million assets are backed by cars, with interest rates pegged to the value of cars such as the 2008 Ford Expedition and the 2000 Lincoln Navigator.
JuanSnow on Twitter noted that the token sales generated $6.5 million in less than 48 hours:
“Congrats to the @DMMDAO for a very successful Public Sale for their $DMG Governance token. The team raised over $6.5m in less than 48hrs. The sale just ended about an hour ago and the volume on @UniswapProtocol has been insane! Top 2 in volume only behind $COMP”
It was an “Initial DEX Offering” that happened across two decentralized exchanges. The token sale comes after the decentralized lending platform Compound recently distributed its new COMP tokens. The value of these tokens have increased since they were distributed, attaining a $550 million market capitalization.
The project’s partners include the Draper Venture Network, Huobi, Chainlink and Coinbase. DMM hopes to be successful as Compound was already DeFi’s biggest project. Compound’s growth in recent times suggests real interest in the DeFi domain.