API3, a leading provider of decentralized API services for blockchain networks, has recently completed a significant treasury diversification round, successfully securing $4 million in USDC. The round was spearheaded by DWF Labs and saw the participation of other key venture capital players including Spartan Group, Laser Digital (a Nomura division), and Caladan (previously known as AlphaLab).
This strategic financial maneuver is designed to enhance API3’s market presence and boost its operational capabilities, ensuring the project can continue to innovate and expand its reach within the decentralized finance (DeFi) ecosystem.
The funding round not only injects substantial capital into API3 but also aligns it with partners that bring a wealth of strategic advantages. These partnerships are expected to catalyze further development and integration of API3’s technology across various platforms and applications, particularly focusing on the expansion and enhancement of decentralized applications (dApps) and blockchain networks.
The influx of funds will specifically support critical initiatives such as the OEV Network’s mainnet launch, showcasing API3’s commitment to broadening the accessibility and functionality of decentralized oracles.
We're proud to have led @API3DAO's strategic funding round! Congratulations to the team on this achievement. 🔥 This funding round will accelerate API3's mission to revolutionise the oracle landscape and advance the global onchain financial system. 🌐We look forward to their… https://t.co/Rxs4ramjWd
— DWF Labs (@DWFLabs) May 29, 2024
Unlocking New Opportunities with API3’s Enhanced Financial Strategy
In detail, the funding round involved the allocation of 1,423,500 API3 tokens at a price of $2.81 each, representing a 20% discount on the 7-day TWAP of $3.51 per API3 token.
The strategic contributors to this round were allocated tokens as follows: DWF Labs received 711,744 API3 for their $2M contribution, Spartan Group was allocated 355,872 API3 for $1M, and both Laser Digital and Caladan received 177,936 API3 for their contributions of $500k each. This structured allocation underscores the confidence and commitment of these leading firms in API3’s vision and their role in propelling the project forward.
To ensure a committed and long-term partnership, the tokens distributed during this round are subject to a 12-month linear unlock schedule following a 6-month cliff. This means that half of the tokens will become available six months post-funding, with the remainder being gradually released over the subsequent six months.
This lockup period is strategically designed to align the interests of API3 and its new investors, promoting stability and long-term value creation.
This strategic financial boost is set to empower API3 to further its mission to redefine the oracle landscape by developing a fully integrated oracle stack. This includes expanding its services, such as the protection protocols from Oracle Extractable Value (OEV), and supporting the foundational aspects of a global on-chain financial system.
The collaboration with notable financial and tech partners through this funding round positions API3 for accelerated growth and continued innovation in the rapidly evolving blockchain and DeFi sectors.
With the successful close of this funding round, API3 is better equipped to pursue its developmental goals and expand its technological offerings, reinforcing its position as a pivotal entity in the blockchain infrastructure space. The partnership with prominent players like DWF Labs, Spartan Group, Laser Digital, and Caladan is a testament to the project’s potential and strategic direction, setting the stage for its next phase of growth and its contribution to the broader blockchain ecosystem.
