Animoca Brands led a $3 million round of private fundraising for Kyoko.finance (Kyoko). It is a DAO-to-DAO loan provider and cross-chain GameFi NFT lending platform.
Infinity Ventures Crypto (IVC), AXIA8, NGC Ventures, YGG SEA. Also, Red Building Capital, Morningstar Ventures, Momentum 6, and BlockchainSpace were among the additional investors.
Many cryptocurrency enterprises adopt the DAO (decentralized autonomous organization) form. Token holders must generally propose and authorize crucial actions such as treasury assets or modifications to the project code.
A DAO’s framework is naturally open and transparent. This is due to its compelling function to distribute value to the individuals who form it. Other DAOs will be able to compete with it if it doesn’t. Also, their members may depart for other alternatives.
What is DAO-to-DAO?
The DAO-to-DAO credit lending infrastructure provides the web3 market with unsecured and collateralized lending and liquidity. GameFi’s issues are addressed by the company’s P2P NFT lending and cross-chain asset lending systems. These issues include rising entry charges and in-game resources spread over multiple blockchains.
The investment will enable the network to keep its market-leading position. Kyoko intends to form strategic relationships with DAOs, guilds, and video games. It will also increase the size of its innovation and marketing teams to broaden its market influence quickly.
The P2P NFT lending protocol allows users to generate liquidity from their underutilized NFT assets. Borrowers can acquire cryptocurrency loans on the site using NFTs as collateral, promoting this. Additionally, lenders are the ones who determine the actual parameters of the loan. In addition, the loan amount, interest rate, and repayment time are all important considerations. Borrowers will reject a loan application if the lender does not offer competitive market rates.
Importance of DAO
DAOs are essential to both GameFi and the greater cryptocurrency industry. In the GameFi industry, DAOs are at the heart of large groups of players and investors. They combine resources and in-game assets through guilds. In-game NFTs have soared in value, and guilds may acquire a substantial stockpile of them.
Even though the company has expanded, there is still an absence of interoperability. This is mainly regarding the transportation of NFTs and their value between games. As a result, guild fees and liquidity demand for diversifying into new games across different game chains have increased significantly.
DAOs that govern well-known guilds and smaller guilds with increasing growth potential can appeal to Kyoko. When it comes for a line of credit to borrow bitcoins or in-game assets. Also, candidates that pass Kyoko’s credit risk evaluation, for instance, will be approved for unsecured credit loans. Only with the option to increase their credit limits through collateralized loans.
GameFi gave birth to the DAO-to-DAO fundraising platform. However, it is not limited to guilds. DAOs in various sectors can apply for credit loans through the DAO-to-DAO lending network.