- Archimedes has announced a $4.9 million seed round led by Hack VC.
- The decentralised finance platform is building a hybrid lending system that blends NFTs and leveraging.
- Lenders can earn multiple times in yield compared to what they earn on regular crypto lending platforms.
Archimedes has announced a $4.9 million funding round led by Hack VC. Uncorrelated Ventures, Psalion, Truffle Ventures, Cogitent Ventures, Haven VC, and Palsar also participated in the round. The seed round brings the decentralised finance (DeFi) platform’s total fundraising to $7.3 million.
The company is building a crypto-lending platform that allows users to multiply the earning opportunity on their original yield. Archimedes blends elements of leveraged finance with crypto lending to create a “one-of-a-kind” DeFi platform.
The company’s lending ecosystem uses non-fungible tokens (NFTs) to provide an easy-to-use and interoperable crypto-lending experience that represents a yield-generating stablecoin position leveraged 10 times the principal collateral amount.
Archimedes’ fundraising comes at the back of a strong NFT lending period with January 2023 registering the highest number of loans in a month, which also pushed the transaction volume to a new all-time high.
There were a total of 4,399 NFT loans in January worth a whopping 17.9K ETH, approximately $28 million. The ratio of borrowers to lenders stood at 2.12 according to data compiled by Dune Analytics dashboard builder @rchen, based on 616 borrowers and 291 lenders.
Archimedes’ lending platform joins a highly competitive space featuring the likes of BenDAO, NFTfi, and X2Y2. In January, BenDAO accounted for $36 million while NFTfi realised a total loan volume of $25 million. X2Y2 and Arcade added $12 million and $7.8 million respectively.
Archimedes will look to onboard borrowers and lenders onto its platform with its unique leveraging feature, which it says is a unique approach to DeFi and NFT utility.
Writing in a press release on Wednesday, the company said its “innovative new take on DeFi’s existing lending and borrowing marketplaces was built around the idea of helping on-ramp users to blue-chip DeFi opportunities.”
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