Backed by Manifold and other prominent investors, Yei Finance plans to revolutionize DeFi lending with its innovative cross-chain solutions. The company has recently successfully closed its $2M seed funding round, which was led by Manifold, with participation from DWF Ventures, Kronos Research, Outlier Ventures, Side Door Ventures, WOO, as well as industry figures Matt Dobel (@mattdobel) and 0xZHUANG.

The raised funds will be used for the development of Yei Finance’s V2, a significant step toward building an omnichannel money market that tackles inefficiencies in the current DeFi ecosystem. V2 introduces new features aimed at enhancing user experience, scalability, and capital efficiency across multiple blockchains.

Its modular lending markets feature isolated lending pools designed for specific assets, risk profiles, and strategies, supporting cross-chain borrowing and lending while using yield-bearing tokens like yUSDC to enhance capital efficiency. This approach allows for new liquidity opportunities, providing users with flexibility and security.

Yei Finance also envisions a dedicated app chain at the core of its vision, which includes a centralized credit layer for managing collateral, debt, and interest rates. This architecture ensures scalable and secure cross-chain operations, setting a solid foundation for growth. An omnichain money market is being developed that simplifies borrowing and lending across multiple blockchains.

By integrating Circle’s CCTP for native USDC transfers, Yei Finance eliminates the need for wrapped tokens or third-party bridges, streamlining capital utilization and reducing liquidity fragmentation. This provides a seamless user experience. Strengthening the DeFi landscape is at the heart of Yei Finance’s mission, and it is developing essential innovations such as smart routing for optimal cross-chain lending and a robust liquidation framework to mitigate systemic risks.

These features will position Yei Finance as a prominent protocol in the omnichain lending space. With the $2 million raised in this seed round, Yei Finance has plans to revamp the platform’s interface to make it more intuitive and user-friendly, introduce flexible modular lending, and build a unified liquidity pool for smooth borrowing and lending across multiple blockchains.

These improvements will help Yei Finance continue to expand and innovate in the DeFi space.

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