API3, a leading provider of decentralized API services for blockchain networks, recently completed a significant round of treasury diversification, securing $4 million in USDC. The round was led by DWF Labs and also involved participation from other notable venture capital players including Spartan Group, Laser Digital (a division of Nomura), and Caladan (formerly known as AlphaLab).
This strategic financial move aims to enhance API3’s presence in the market and strengthen its operational capabilities, ensuring that the project can continue to innovate and expand within the decentralized finance (DeFi) ecosystem.
The funding round not only provides substantial capital for API3 but also aligns the project with partners who bring strategic advantages. These partnerships are expected to drive further development and integration of API3’s technology across various platforms and applications, with a particular focus on expanding and enhancing decentralized applications (dApps) and blockchain networks.
The influx of funds will specifically support important initiatives such as the mainnet launch of the OEV Network, demonstrating API3’s commitment to increasing the accessibility and functionality of decentralized oracles.
“We’re proud to have led @API3DAO’s strategic funding round! Congratulations to the team on this achievement. This funding round will accelerate API3’s mission to revolutionize the oracle landscape and advance the global onchain financial system. We look forward to their…” tweeted DWF Labs on May 29, 2024.
Unlocking New Opportunities with API3’s Enhanced Financial Strategy
In this funding round, 1,423,500 API3 tokens were allocated at a price of $2.81 each, representing a 20% discount on the 7-day TWAP of $3.51 per API3 token.
The strategic contributors to this round received tokens as follows: DWF Labs received 711,744 API3 tokens for their $2 million contribution, Spartan Group was allocated 355,872 API3 tokens for $1 million, and both Laser Digital and Caladan received 177,936 API3 tokens for their contributions of $500,000 each. This structured allocation demonstrates the confidence and commitment of these leading firms in API3’s vision and their role in driving the project forward.
To ensure a committed and long-term partnership, the tokens distributed during this round are subject to a 12-month linear unlock schedule following a 6-month cliff. This means that half of the tokens will become available six months after the funding, with the remaining tokens gradually released over the subsequent six months. This lockup period is strategically designed to align the interests of API3 and its new investors, promoting stability and long-term value creation.
This strategic financial boost will enable API3 to further its mission of redefining the oracle landscape by developing a fully integrated oracle stack. This includes expanding its services, such as the protection protocols from Oracle Extractable Value (OEV), and supporting the foundational aspects of a global on-chain financial system.
The collaboration with notable financial and tech partners through this funding round positions API3 for accelerated growth and continued innovation in the rapidly evolving blockchain and DeFi sectors.
With the successful completion of this funding round, API3 is now better equipped to pursue its development goals and expand its technological offerings, solidifying its position as a crucial entity in the blockchain infrastructure space. The partnership with prominent players like DWF Labs, Spartan Group, Laser Digital, and Caladan is a testament to the project’s potential and strategic direction, setting the stage for its next phase of growth and its contribution to the broader blockchain ecosystem.
