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More and more DeFi projects fund with cash Gitcoin grants

Photo of: Sangeetha Golchha
by Sangeetha Golchha

Gitcoin is one of the most unique platforms designed to fund ethereum-based projects and the platform it seems is being inundated with funds recently in its round of funding. Gitcoin believes that this round of funding is slated to be its biggest yet with matching commitments which are at least $360k. YearnFinance, for the very first time, overtaken the behemoth Ethereum Foundation to become one of the largest contributors. It has granted $5000 more with its grants at $155,000.

On a cumulative basis, $360,000 is now available for this round to last from 15th September to October 2’nd with hundreds and hundreds of projects out there. Yearn Finance’s leader Andre Cronje said:

“Give some back and fund the next wave of protocols.”

Synthetix responded and Gitcoin referred to Synthetix as ‘new hero appears’. Gitcoin commented that this contribution was the highest they have received, even higher than the Yearn Finance that was the previous ATH. This was funded by Synthetix DAO. The organization looks forward to different teams accepting the challenge thrown in By Andre Cronje and providing the necessary momentum back to public goods. 

Decentralized apps on Ethereum can come under the window of public goods as they are open-source. The very recent fork wars also proved to talk about the same. Coming to think of it, Yearn Finance as well as Synthetix are also funding their own business directly as well as through indirect means. If we observe, Most of these decentralized apps are reliant on each other right from the basics. Hence as a direct benefit, these funds can help many of these projects. 

Talking about indirect ways, if the continuity of these dapps has to be stretched from medium term to long term then finding and sourcing talent is a must. It is important that a new way is paved for new coders and students to step in because they are dynamic enough to understand the dynamicity and machinations of the different projects. Secondly, funding lubricates the system finely to make it functioning effectively and competitively. When there is money in the system, newer projects try to enter the market. New dapps join the existing to make the market competitive and optimally charged. 

Many dapps like Uniswap did start out on their own without being offered grants to put them in the mainstream. Had it not been for crypto Bazar, several dapps wouldn’t even exist, leading us to believe that it is in the interest of every dapp for other dapps to succeed provided they are not clones. 

Talking about code, even if the project has open-source coding,  they do have a wall of concealment. It still operates within some isolated networks with bitcoin and ETH being shining examples of it. They are both examples of open-source code. ETH takes a lot from bitcoin but it can’t all. Bitcoin can’t do much unless you tokenize it which will give rise to a new or a different asset.