To address inefficiencies in DeFi money markets, Nolus, an interoperable application on Cosmos, has obtained $2.5 million in pre-seed and seed funding.
The recently completed $20 million valuation seed funding, which is supported, among others, by Dorahacks, Everstake, Cogitent Ventures, Token Metrics Ventures, and Autonomy Capital, will enable Nolus to finish building the platform’s technological foundation and expand it both inside and outside the Cosmos ecosystem. Members of the Advisory Board, Shane Molidor, Strangelove, and Zaki Manian, will see that Nolus establishes a strong cross-chain presence.
By lowering the industry’s onerous over-collateralization restrictions, Nolus’ innovative DeFi Lease solution maximizes the potential of cryptocurrency money markets and gives customers access to considerably more advantageous loan options. The Nolus DeFi Lease offers access to the underlying leveraged assets through whitelisted yield-bearing methods, up to 150% financing on the initial investment, and reduced margin call risk. The Nolus protocol will develop a key use case for LSDs for the Cosmos ecosystem in the form of self-repaying loans with the backing of liquid staking derivatives.
On Nolus
Nolus describes a money market as a transaction between a lender seeking a yield on stablecoins placed and a borrower seeking to increase holdings with more assets than their present equity while assuming ownership and reducing risk.
The Protocol makes use of a semi-permissioned PoS blockchain created with the Cosmos SDK and a WASM smart contract engine that runs in a secure, decoupled environment with an emphasis on performance, interoperability, and security. The foundation of Nolus’ offering is interoperability because the Protocol uses IBC and Interchain Accounts to access a variety of liquidity hubs without fragmenting chains.
In May, Nolus will launch its public mainnet following several months of testing.
