Billionaire Tim Draper Sees Potential in DeFi and Backs New DAO
Billionaire Tim Draper sees potential in DeFi and invests in a new DAO governance platform called DMM DAO.
Tim Draper, the billionaire and Bitcoin bull who has backed Tesla, SpaceX and Coinbase, is making moves into decentralized finance. He is now investing in DeFi Money Markets DAO (DMM DAO), according to the DMM Foundation’s official announcement on March 16.
The billionaire is investing in governance tokens
Draper Goren Holm Ventures, the leading fintech VC fund focusing on early-stage blockchain startups, has purchased a stake in the form of DMG — the soon-to-be-released governance token that will run the DMM DAO, as stated in the announcement.
According to the official post, The DMG token offers holders the right to vote and direct the system that bridges the gap between real-world assets and the new on-chain economy.
Blockchain technology supports DeFin protocols
The DMM Protocol is a bridge between Ethereum digital assets and real-world assets, according to the official post. The DMM Protocol is an interface that also allows anyone to earn 6.25% backed by real-world assets by visiting the blockchain backed DeFi Money Market App, according to the announcement.
DMM launched the DeFi Money Market using Chainlink’s secure oracles to validate and make viewable the asset backing on-chain.
Sergey Nazarov, Co-founder of Chainlink, commented on the DMM protocol saying:
“Adding real-world assets as collateral for blockchain-based money markets has the potential to create consistent, stable yields in a decentralized, permissionless manner.”
The aim of the protocol is to leverage blockchain to solve a global problem of how to earn passive income while providing transparency to the underlying asset. Tim Draper added that:
“Many crypto and traditional investors are looking for stable, secure passive income. Gregory Keough and the team at the DMM Foundation leverage blockchain to allow users to earn passive income.”
Defi continues to trend
Last month, Cointelegraph reported on the latest development of DeFi. It pointed out that DeFi is emerging as an alternative solution for the traditional financial sector in the near future.
DeFi applications continue to show potential in decentralized credit and lending systems, prediction markets and asset management, says the report.