Maven 11 Capital is happy to announce that we have co-led the USD 1.25M seed round of Fuji DAO together with Delphi Ventures. Fuji DAO is an automated borrowing aggregation protocol. It will automatically and constantly give borrowers the best possible rates at various loan providers within the DeFi ecosystem.
A lot of aggregators exist on the exchange and lending side of DeFi. However, on the borrowing side the product offering has been more limited. Fuji set out on a mission to fix this. In doing so they will aim to capture the USD 10B borrowing market in DeFi which has grown tenfold from just USD 1B in June last year.
“The borrowing markets in DeFi are still maturing, and the infrastructure that will make the market liquid and fluid is still being built. At Fuji we want to be part of this building process and our ultimate long-term goal is that borrowing in Defi is accessible to more and more users.” - Fuji DAO team
We see a few advantages in Fuji compared to interacting directly with the borrowing protocol. These are the economics of scale, smooth UX and the removal of constant attention users need to pay to find optimal rates. Finally, by automatically refinancing (sometimes utilizing flash loans) across various protocols, Fuji will enable more efficient capital allocations on the protocol side.
We believe borrowing markets in DeFi will continue growing and expect to see new lending and borrowing protocols to be deployed. This further increases the value proposition of an aggregator. Add onto this new blockchains (both L1 and L2) growing their DeFi ecosystem and the value proposition of an aggregator becomes crystal clear.
“Increased capital efficiency is a big part of why DeFi is so important. Fuji will make the demand side of capital allocations way more efficient. By creating ease of use for users and other protocols in this segment it will only grow the market for DeFi as a whole.” - Balder Bomans, Managing Partner Maven 11
Fuji is currently rolling out their alpha on mainnet and we invite you to keep track of them, or say hi in their Discord, as they progress towards a full fledged mainnet launch later this year. We look forward to supporting the team and to continue working together on becoming the go-to borrowing product in DeFi.