Float Protocol Raises $1.2M to Create a Truly Decentralized, Non-Dollar Stablecoin
PRESS RELEASE. Float Protocol, the protocol behind FLOAT token, a decentralised un-pegged stablecoin which tracks a diverse collection of solid crypto assets, announced today that they have completed a $1.2 million treasury diversification round.
FLOAT is one of the first un-pegged stablecoins in DeFi, offering independent “true crypto money” to the ecosystem while providing a decentralised alternative to inflationary dollar pegged stablecoins. Being crypto-native, FLOAT aims to become the currency of DeFi.
Prominent DeFi DAOs such as MCV and The LAO participated in the treasury diversification in addition to strategic partners including Eden Block, Stani Kulechov from Aave, 0xMaki from Sushiswap, Ana Andrianova from Akropolis, Sunil Srivatsa from Saddle Finance, DeFi investor Santiago R Santos, Batuhan Dasgin, Re7 Capital, Freddie Farmer, Ivailo Jordanov from 7percent ventures, Katya from P2P Capital, Lyuben Belov from Launchub Ventures, and Sergei Chan from BlockScience. The treasury diversification was completed on-chain via a smart contract, where strategic partners exchanged ETH for BANK, Float Protocol’s utility and governance token.
“Creating a decentralized & censorship resistant stablecoin is one of the most promising areas in DeFi. That’s where FLOAT comes in as a base pair and medium of exchange and I’m excited to back the team on this journey.” – Santiago R Santos, DeFi investor.
“The Float team is among the most skilled devs (doxxed or anon) I have been in contact with so it is a pleasure to support them and participate in their long term vision” – 0xMaki from Sushiswap.
“web3 needs truely decentralised money and not just another stablecoin or algorithmic coin that’s actually wrapped USDC. MCV is backing Float Protocol to be leaders in this emerging market.” – MCV.
The Protocol has been live for 4 months and performed outstandingly. It launched in the worst week for ETH in 2021, seeing its ‘Basket factor’ drop to 40%. Yet, FLOAT maintained stability throughout. It uses routine smart contract ‘Dutch Auctions’ to alter the supply and therefore stabilise the price of FLOAT. Paul M, lead developer at Float Protocol explained that “the Dutch Auctions are not only efficient due to their game-theoretical nature but they are also flash-loanable. This allows for a capital efficient and profitable opportunity for traders and arbitrageurs alike.”
Float Protocol gained prominence at the start of year through its “fair, ‘anti-whale’, launch”, which was extremely popular with participants being limited by their overall DeFi activity and how much they could deposit to receive ‘BANK’, the governance token of the protocol. At one point during the initial distribution of ‘BANK’, over $1.5bn dollars worth of crypto assets were participating across over thousands of active DeFi addresses.
Float Protocol chose treasury diversification (a path also chosen by Saffron Finance) rather than formal investment raise because of the Protocol’s emphasis on decentralisation, embedded since its initial launch earlier this year. All participants in the treasury diversification were approved by members of the Float Protocol DAO.
The core team’s goal is now to integrate FLOAT across DeFi, starting with lending platforms while preparing the path to FLOAT becoming the unit of account of the DeFi economy. FLOAT primes itself as the “perfect collateral” being less volatile than ETH while still being capital efficient. In the coming year, Float Protocol looks towards integrating with NFT platforms and artists for pricing digital goods due to FLOAT’s low-volatile characteristics while still being closely related to the crypto economy.
About Float Protocol
Float Protocol is building the decentralised monetary system of the future. At the heart of the protocol is the FLOAT token, an un-pegged stablecoin for the crypto economy. It is designed to be the first truly native internet currency, fully satisfying all three major properties of money: as a medium of exchange, a store of value and a unit of account. The Float Protocol community and the number of contributors are growing, join the discord and get involved here.
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