Decentralized finance firm Yieldly banks $1.4m in LongHash-backed round

Yieldly, a project building a suite of decentralized finance (DeFi) on public cryptocurrency blockchain Algorand, said it raised US$1.4 million at a 20 million fully diluted token value.

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Investors include Borderless Capital, LongHash Ventures, and CMS Holdings. Other additional investors include OKEX’s Block Dream Fund, Neo Global Capital, Kosmos Capital, LD Capital, Kernel Ventures, and IBMR.io.

Founded in 2020, Yieldly’s initial use case will be Yieldly Pools, which allows holders of Algorand and other projects on the protocol to gamify cryptocurrency saving and holding.

The company claims that Yieldly Pools is a “no-loss lottery,” with payouts increasing along with the size of participants.

“Yieldly is building key components of DeFi on Algorand, and is clear-sighted on its inclusive cross chain vision,” said LongHash Ventures chief operating officer Shi Khai Wei.

Algorand, founded by MIT professor Professor Silvio Micali, is a protocol that takes a pure proof-of-stake approach for security. This allows Yieldly to achieve scalability, security, and decentralization without compromise, the company claims.

Prior to the funding round, Yieldly participated in the Finance 3.0 cohort of the Algorand Asia Accelerator by Algorand Foundation. Powered by LongHash Ventures, the 12-week accelerator program started in October 2020 and ran until January this year, pouring US$15,000 in seed funding to the cohort’s 10 startups.