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ParaSwap raises 42.7 million to push its growth agenda in the DeFi space

Photo of: Sangeetha Golchha
by Sangeetha Golchha

The DeFi revolution and evolution are all happening at the same time. There are some unique proposals and projects that are underway and promise to make crypto even bigger. DeFi continues to rule and grow beyond imagination with total value locked reaching great heights and at $ 10 billion now. 

Recently ParaSwap, the France-based company which aggregates prices on multiple decentralized exchanges has just executed a successful competition of seed funding raising $2.7 million. As a part of its growth plans, it aims to help developers of decentralized applications offer token swaps for their users. In an attempt to scale infrastructure and help DeFi reach out to new space, and had recently conducted a fundraising event to scale infrastructure. Mounir Benchemled, founder of ParaSwap said, 

“DeFi is just starting out. It reminds me of Crypto in mid/early 2013. I think we’ll see huge growth within the next 12 months.”

The seed funding round was able to gather contributions from more than 30 investors which also includes some true prominent names from the crypto industry. CoinGecko has stated that among the list of investors some of the names are a cryptocurrency price comparison website, Blockchain Capital, a venture firm in the blockchain space, and Stani Kulechov, the founder of DeFi protocol Aave. 

Benchemled related to this opined that it is during such funding rounds that indications of possible improvements needed in DeFi space are clearly elucidated. It is basically an indicator that the DeFi market’s needs are evolving beyond simple user interface for swaps. It essentially needs those projects which will help build robust and infallible crypto industry standards. The funds amounted to $2.7 million raised and will help ParaSwap to come back on the right track. Benchemled added,

“We feel very fortunate to have surrounded ourselves with an amazing group of investors and to have a world-class talent core team.”

As per the company official there are two major reasons why ParaSwap has been able to successfully attract a diverse group of investors. The first reason is ParaSwap’s ability to deliver what should be delivered with optimum use of resources. Benchemled said that ParaSwap has been a one-man army most of the time. Since March it has managed to outgrow its competition which consists of old and well-funded players and projects.

A major attribute to its successful funding outing also is because ParaSwap has a great clan of clients who have participated in the funding round. ParaSwap was able to attract some of the most enviable names in the ecosystem with tier 1 dapps and wallets investing in to fulfill its aims. Decentralized Finance is still open to a lot of fixtures especially matters related to security. The weaknesses of the system and vulnerabilities are noticeable by bad actors who in turn constantly hack in the space.

On an ending note, Benchemled said,

“I think we need more insurance products such as Nexus Mutual and Unslashed,” 

It is important to first focus on minimizing consumer losses by covering risks.