KeeperDAO Raises Seven-Figure Seed Investment From Polychain, Three Arrows

Crypto venture capital firm Polychain Capital and fund manager Three Arrows Capital have backed liquidity protocol KeeperDAO in a seed funding round announced Friday.

• Polychain and Three Arrows were KeeperDAO's only investors in the round that raised a "seven-figure sum," KeeperDAO founding member Tiantian Kullander told CoinDesk.
• KeeperDAO is a decentralized finance (DeFi) protocol that lets participants in communal liquidity pools (known as keepers) participate in strategies involving margin trading and lending.
• Keeper pools are able to combine their capital into Ethereum's smart contracts and profit as a group from on-chain arbitrage and liquidation opportunities.
• Three Arrows Capital CEO Su Zhu said KeeperDAO would help to keep liquidations on Ethereum "efficient" while making sure participants "earn their keep."
• Going forward, KeeperDAO plans to issue its own governance token as a tool for balancing incentives between keepers and liquidity providers.
• Thanks to the project, DeFi protocols based on on margin and borrowing would be able to "lower collateralization levels over time,” according to Sherwin Dowlat, investments at Polychain.
• Three Arrows recently participated in a $3 million investment in Aave the firm behind the third-largest lending platform in DeFi.

See also: Three Arrows Capital Now Holds More Than 6% of Grayscale’s $3.6B Bitcoin Trust