Cryptocurrency market maker and Web3 investment firm DWF Labs announced that it will invest up to $75 million in decentralized finance projects that may support institutional adoption.
The company shared this announcement via X on Wednesday, stating that the fund will support projects with "innovative value" propositions that can scale to support mass adoption.
DWF Labs stated, "The program will target blockchain projects that build dark pool perpetual DEXs, decentralized money markets, and fixed income or yield-bearing asset products, […] the company believes these areas are poised for significant growth as cryptocurrency liquidity continues to structurally migrate on-chain."
As part of the announcement, DWF Labs Managing Partner Andrei Grachev emphasized the importance of building "truly practical" DeFi infrastructure to support institutional needs.
He said, "DeFi is entering its institutional phase." He added, "We see a real demand for infrastructure that can handle scale, protect order flow, and generate sustainable returns."
The fund will focus on projects built on Ethereum, BNB Smart Chain, Solana, and Coinbase's Ethereum Layer 2 network, Base.
In addition to capital injection, DWF Labs will also provide support such as "TVL and cryptocurrency liquidity supply, practical marketing strategies and execution support," as well as access to channels with partner exchanges, market makers, infrastructure providers, and cryptocurrency institutions.
As of the time of publication, according to DefiLlama data, the total locked value of all DeFi projects exceeds $120 billion.
It peaked during the "DeFi Summer" of 2021 at around $175 billion and nearly climbed back to that high last month, reaching $166 billion before the market crash on October 10.
Although DeFi was initially designed as a niche alternative to traditional finance, some believe that centralized institutions will play a key role in helping the industry go mainstream.
Chainlink co-founder Sergey Nazarov stated in a video released on YouTube on Tuesday while speaking with MN Capital founder Michaël van de Poppe, "I think we are about 30% done."
Nazarov predicted that DeFi will reach 50% mass adoption when the regulatory environment is clear, and will reach 70% when the infrastructure and technology are simple and efficient enough for institutions to invest their capital and client funds into DeFi.
Related: The crypto industry enters the product era: Asian developers are taking over the next round of dominance
Original article: “DWF Labs launches $75 million fund, betting on DeFi's 'institutional phase'”
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