[PRESS RELEASE – Toronto, Canada, January 24th, 2024]
Oversubscribed Round With Top Blockchain VCs Included Robot Ventures, Big Brain Capital & Veris Ventures
Synonym Finance, a cross-chain lending platform, today announced its oversubscribed seed round funding round totalling $1.5 million. The raise was led by Borderless Capital, a leading Web3-native investment manager with focus on fostering dynamic blockchain ecosystems and cross-chain technologies. Built on the Wormhole xChain Technology Stack and Arbitrum, Synonym delivers DeFi users a robust money market with deep liquidity and cross-chain efficiency.
An armada of Layer-1s, rollups and sidechains is emerging, creating new avenues for blockchain scaling. However, with this diversification of opportunities, on-chain liquidity has become increasingly fragmented. Concurrently, when new chains appear, DeFi professionals seek to try them out, which necessitates the bridging of assets, incurring inefficiencies such as high fees, slow transfer times, and the hassle of wrapping and unwrapping tokens.
Synonym’s cross-chain money market solves the problems of fragmented liquidity and inefficient bridging, by allowing professionals to use the same liquidity across multiple chains. Synonym achieves this by enabling the borrowing of assets on one blockchain by using collateral assets on another blockchain. Leveraging cutting-edge technologies like Circle’s CCTP, Synonym aims to empower users with a best-in-class money market experience.
“We are thrilled to back the team behind Synonym Finance and their mission to provide secure cross-chain borrowing and lending, while solving one of the largest problems across web3 — fragmented liquidity. Leveraging the Wormhole stack canonically, Synonym is advancing the overall maturity of DeFi for users, developers, and institutions across web3 and beyond, starting with a universal cross-chain money market,” said Alpen Sheth, Partner at Borderless Capital.
“We can’t be more excited about Synonym Finance and their suite of products that leverages both the emerging ecosystems of Wormhole and Solana,” said Sam Kim, General Partner at Big Brain Holdings. “We believe the team will help unlock Ethereum capital and open up Solana DeFi for Ethereum users.”
The successful seed raise drew support from some of the most notable venture funds, including Robot Ventures, Big Brain Holdings, Veris Ventures, AWVC, SerDAO and angels from Jones DAO, Arbitrum and more.
“Synonym boldly addresses the complexities of cross-chain lending (desync, collateral whitelisting, collateral cap, etc),” said Michael Tan, General Partner at Veris Ventures. “We are thrilled by the team’s vision and potential to pioneer true cross-chain borrowing. It is a crucial solution for capital efficiency across all existing and upcoming blockchains, and we believe Synonym could be a key enabler in realizing this future.”
“We’re humbled and incredibly excited to have the backing of such noteworthy partners and advisors,” commented 0xbeachball, Founder of Synonym Finance. “The cross-chain lending sector is extremely underdeveloped, and we see a significant gap for a highly flexible cross-chain money market to acquire users in both new and existing ecosystems. We’re building Synonym to be a highly flexible cross-chain lending protocol that can deliver liquidity and borrow volumes into new ecosystems.”
Synonym is audited by OtterSec and Runtime Verification, and has partnered with Gauntlet for quantitative modeling and real-time risk monitoring engagement. In the long term, Synonym is focused on becoming the premier venue for cross-chain lending and borrowing among major L2 rollups, app-chains and innovative L3s.
To learn more about Synonym, users can visit synonym.finance.
Users can stay up-to-date with Synonym developments on Mirror, and join the conversation on Discord and X.
About Synonym Finance
Synonym is a truly cross-chain money market built on the Wormhole xChain technology stack. By power users, for power users, Synonym enables true cross-chain collateralization and flexibility that current lending incumbents don’t offer. Synonym was born from a unique DAO merger with New Order DAO, giving Synonym a network, community and resource advantage from day one. Long-term, Synonym is focused on becoming the premier venue for cross-chain lending and borrowing major L2 rollups, app-chains and L3s.
Borderless is a leading investment management firm focused on Web3 technology, dedicated to supporting the next generation of innovators who are driving the development of groundbreaking technologies that will enable the creation of value without borders. Borderless comprises a team of builders, partners, and investors who adopt a long-term perspective and strive to unleash the full potential of open, community-driven networks. Since 2018, Borderless has made 200+ investments across infrastructure, business applications, and nascent cryptographic protocols, and has played an integral role in the development of some of the most significant and innovative Web3 communities.
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