- VC company Draper Goren Holm announces successful seed round to fund the Tezos Foundation
- The Tezos Foundation and its partners want to bring DeFi capabilities such to Tezos
- Tezos has paid millions due to disputes over the 2017 token sale
Tezos News Today – even though the DeFi scene is dominated by Ethereum, Tezos has been moving to attract more users to its side with a promise of lower fees and quicker transactions. Tezos Stable Technologies (an arm of the recently launched Tezos Stablecoin Foundation working to advance DeFi development on Tezos), has completed a successful seed round on the day.
The announcement came to light via a press release by the venture capital (VC) firm Draper Goren Holm. The total amount raised during the seed round wasn’t disclosed. This is a first step towards creating a Tezos DeFi ecosystem. One that will compete with development on Ethereum. The goal is to draw off the billions of USD in liquidity that have exclusively been spent on Ethereum-based designs.
The Tezos Stablecoin Technologies Will Support Development of USDtz on Tezos
The recently funded Tezos Stablecoin Technologies will provide support for the proliferation and development of USDtz stablecoins on Tezos. It will also release its plans for a public sale of the Trustee tokens (TRU) soon. The holders of TRU token will get a share of tokens from every new Tezos-backed DeFi project that is launched in collaboration with the organization. Several Tezos Finance (Tezfin) open-source protocols are already in the works. Some of such projects are the lending platforms and the TEZEX decentralized exchange.
DeFi represents a group of projects that allows users to access financial tools like loans or interests on deposits. They swap out the centralized structure like banks and replaces them with smart contracts. Smart contracts execute user requests on Blockchain networks. DeFi is a big business currently. There are more than $10 billion in the DeFi value locked in Ethereum according to data given by DeFi Pulse.
Tezos Has the Capacity to Outperform Ethereum in Transaction Speed
Tezos can potentially outperform Ethereum’s Blockchain in transaction speed. Tezos can process up to 40 transactions every second (which is an improvement from Ethereum’s 15 transactions per second). More transactions per second could give DeFi apps on Tezos the capacity to accommodate more users without the issue of rising fees (an issue that has plagued Ethereum’s Blockchain recently although this issue could be handled by Ethereum 2.0).
Tezos has drawn attention in recent weeks. On the bright side, the network became a frontrunner for the development of a digital Euro. On the less positive side, the Tezos Foundation (which is the firm in charge of guiding the network), recently agreed to a $25 million settlement over its 2017 ICO. The Tezos will pay damages to investors over the dispute.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.