Maven 11 Capital is excited to announce our participation in the seed round of Flux Protocol. Flux is an open data protocol used to transfer off-chain data into blockchains (on-chain). This is critical infrastructure for smart contracts that utilize this data, especially within DeFi where a lot of value is held and transferred by these contracts.
“You can’t have 100 million liquidations because an oracle delivered the wrong data. We are creating a more secure foundational layer to allow DeFi to fully scale to the mainstream.” - Peter Mitchell, CEO Flux Protocol
With the exponential rise of DeFi adoption, we have seen a range of hacks and exploits of various protocols. As early as June 2019, price oracle attacks took place. Over the next few years the so-called “price oracle attack” became more and more common. The general method is that an oracle that is easily manipulatable will be used to trick another protocol into using misreported data. In consequence, the protocol is then exploited for the attacker's gain.
Consequently, it is important to have reliable and accurate oracles. Offering this at a scale is exactly what Flux offers and what the industry urgently needs. The fresh funding will be used by Flux to become the go-to standard for DeFi oracle products.
“Oracles are one of the most vital parts of blockchain infrastructure. We believe them to become even more important as decentralized finance grows towards trillion dollar markets. Flux Protocol will be a key technology underneath these.” - Balder Bomans, GP Maven 11 Capital
Flux is built on the NEAR network. We are keen to be making steps into this ecosystem as it offers tremendous scalability which is a critical point in the current blockchain infrastructure. We are beyond excited to be supporting the Flux team and are looking forward to making DeFi more secure and scalable with them.