DeFi Firm Usual Labs Secures $7 Million in Funding Round; Kraken Ventures and IOSG Take the Lead

17 Apr 2024

Ambitious startup gets critical backing to launch USD0 stablecoin with innovative DeFi twist
DeFi innovator, Usual Labs, secures a substantial $7 million in a funding round led by industry titans Kraken Ventures and IOSG Ventures. This investment fuels the highly-anticipated launch of USD0, a DeFi-native stablecoin backed by real-world assets. Unlike traditional stablecoins, USD0 offers holders the potential to earn passive income through an innovative Liquid Deposit Token mechanism. This groundbreaking approach aims to disrupt the stablecoin market by offering both stability and yield within the decentralized finance ecosystem. Keep an eye on Usual Labs as they challenge DeFi's stablecoin giants and push the boundaries of decentralized finance.

© coindesk

In brief:

  • Breakthrough Funding: DeFi startup Usual Labs lands $7 million in a funding round led by top investors Kraken Ventures and IOSG Ventures, validating their innovative approach to decentralized finance.
  • USD0 Stablecoin: The company's flagship product is the USD0 stablecoin, which sets itself apart with real-world asset backing and built-in mechanisms for holders to earn yield.
  • Market Disruption: With significant funding and ambitious plans, Usual Labs and their USD0 stablecoin could shake up the DeFi landscape, challenging existing stablecoin providers.

DeFi firm Usual Labs has made headlines with the announcement of a successful $7 million funding round. The investment was spearheaded by renowned players Kraken Ventures and IOSG Ventures. This injection of capital signals the industry's belief in Usual Labs' vision for the future of decentralized finance.

Who is Usual Labs?

Usual Labs is a French company that aims to bring together the strengths of traditional and decentralized finance (DeFi). Their focus is on developing innovative protocols, with a flagship product being the USD0 stablecoin. USD0's unique value proposition lies in its real-world asset backing and integration of yield-generating mechanisms for holders.

The Investors

The fundraising round attracted over a hundred investors, demonstrating broad interest and confidence in Usual Labs. In addition to Kraken Ventures, venture capital firm known for its crypto investments, and IOSG Ventures, a significant player in the Asian blockchain scene, notable participants in the round included:

  • GSR
  • Mantle
  • Starkware
  • Flowdesk
  • Hypersphere
  • Breed

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Impact on the DeFi Landscape

Usual Labs is positioned to stir up the rapidly evolving stablecoin market. The DeFi sector craves reliable, secure, and user-owned stablecoin solutions. If successful, USD0 has the potential to meet these demands while offering additional yield potential (Coindesk, 2024).

What Does the USD0 Stablecoin Offer?

USD0 sets itself apart by using a combination of real-world assets (RWA) as collateral and incorporating an innovative Liquid Deposit Token (LDT) mechanism. This approach aims for optimal financial stability and a clear route for holders to generate passive income within the DeFi ecosystem (Investor Observer, 2024).

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Looking Ahead

Usual Labs plans to launch USD0 in the second quarter of 2024. The company has also secured an impressive $75 million in Total Value Locked (TVL), highlighting the community's anticipation of its offerings. This funding round marks a significant milestone for Usual Labs, giving them the resources to challenge DeFi's stablecoin giants (Investor Observer, 2024).

© coindesk

Emphasis on Market Disruption

The DeFi sector is ripe for disruption, and Usual Labs appears well-equipped to become a force within the stablecoin market. The combination of real-world asset backing and DeFi yield mechanics within USD0 sets it apart from competitors. If their execution matches their ambition, we might witness the rise of a true DeFi-native stablecoin heavyweight.


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