Yield Raises $10M to Expand DeFi Fixed Income Loans on Ethereum

The world of decentralized finance, or DeFi (a Lego-like stack of services that allows people to trade and borrow without intermediaries), is rapidly expanding to include more and more elements of the traditional financial realm. A recent example is Yield, a startup that launched in early 2020 and announced on Wednesday a $10 million funding round led by blue-chip crypto investment firm Paradigm. Yield is one of a growing number of startups offering flat rate loans, a relatively new innovation in DeFi, where users can initially only borrow and lend at variable rates. This is a significant improvement as flat rate offerings provide reliable income and are the cornerstone of traditional finance. Yield's special offering is similar to zero-coupon bonds in conventional finance, but instead consists of fixed amount tokens that borrowers can sell at a discount to raise capital. Yield has developed its own protocol, the Yield Protocol, which runs on top of the Ethereum blockchain. As part of Wednesday's announcement, Yield also announced that the platform will soon offer fixed rate loans integrated with the Ethereum-based project MakerDAO, which created the DAI stablecoin. It's all part of what Allan Niemerg, founder and CEO of Yield, describes in a blog post as "Version 2 of the Yield Protocol." Niemberg added that the new version will serve to increase the number of assets Yield can guarantee and is "gas efficient," a term that refers to low blockchain transaction costs. “Verim's work with the fixed income loan protocol in DeFi is fundamental to the space. We look forward to continuing to work closely with them on creating new financial primitives and tools on Ethereum, Paradigm Director Dan Robinson said in a statement announcing the company's investment. Yield isn't the only crypto startup seeing opportunities in stable loans. In March, a startup called Element announced it had raised $4 million

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