Vycolend is a web3 firm whose protocol is decentralized and offers transparent and non-custodial lending services. The firm’s protocol is built for layer 2 chains enabling users to participate as lenders or borrowers in isolated lending pools. Vycolend is still in its early phase of development and aims to build high-velocity markets for more traditional crypto-asset lending services. The firm aims to achieve this by offering one unified margin account from which users can earn interest on deposits and facilitate borrowing from shared liquidity pools against their own assets as collateral. In the future development phases, Vycolend aims to build institutional-grade financial products and services that are focused on serving institutions and high-net-worth entities.
As Vycolend is gearing forward towards its beta release, the firm has announced the conclusion of its seed funding round that yielded $0.5 million in funding. The funding round was led by Aura Ventures and garnered participation from other investment firms including Lumina Capital and Cardinia Ventures among other eminent angel investors and venture capitals in the web3 and web2 industries.
The proceeds from this round will be utilized in accelerating Vycolend’s development and expansion of its team while scaling operations to meet the increasing demand for its services. Eloy M. Thornton, the co-founder and CEO of Vycolend, has expressed his excitement in acquiring the support of two highly reputable firms, Aura and Lumina, in achieving their mission. He went ahead to note that the investment firms’ extensive experience and resources will be valuable in scaling Vycolend’s business to offer financial technology solutions and onboarding real-world assets onto web3.
Vycolend prides itself in offering a new way for users to leverage their assets by offering a money market made for layer2 chains and with advanced security features. Vycolend is targeting crypto and NFT firms and users.
Vycolend has segmented its products into 4 categories namely NFT lending, Deposits, Borrowing and Yield Farm. In the deposit category, the firm’s products allows users to add WETH and USDC to the market and earn variable interest and Vycolend Tokens($VYCO). Deposits will earn users staking rewards that can be used in the Yield firm to acquire liquidity provider tokens and stake their assets to earn yields. In addition, when users need to use their assets, they can withdraw them instantly.
In borrowing, users can use their supplied assets to borrow up to 80% of their assets’ value. In this use case, the firm advices its users to take short-term loans as long-term loans lead to a daily increase in the amount owed to the firm based on the daily variable interest rates. In NFT lending, users can stake their assets as collateral to borrow WETH and USDC. On these loans, the firm offers fixed terms without any auto-liquidations. Lastly, Vycolend offers its users a chance to own a part of the firm by purchasing $VYCO tokens and also additional contract audit services.
