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Wave Financial unveils ADA Yield Fund to support Cardano’s DeFi ecosystem

The ADA Yield Fund starts off with $100 million and will benefit Cardano’s growing decentralised finance (DeFi) ecosystem via liquidity and other resources.

Wave Financial has announced the launch of Wave ADA Yield Fund, a $100 million fund aimed at supporting the Cardano (ADA) blockchain ecosystem.

According to Wave Financial CEO David Siemer, the fund is purely meant for the provision of liquidity and targets decentralised exchanges (DEXs), lending protocols and stablecoin issuers. The fund will also support stake pools in the Cardano DeFi ecosystem.

Each of these decentralized applications adds to the strong foundation of the Cardano blockchain as it realizes a fully functional and diverse ecosystem,” Siemer said in a press release shared with CoinJournal on Wednesday.

Wave is a Los Angeles-based digital asset investment manager regulated by the US Securities and Exchanges Commission (SEC). The company says the fund is a reflection of its goals in the crypto ecosystem, including support for promising entrepreneurs.  

Cardano’s growing ecosystem is attracting institutional investors

Cardano launched smart contracts capability in 2021 and has over the past several months, seen an explosion of developer activity.  Hundreds have launched via community funding initiatives, according to Charles Hoskinson, the founder of Input Output (IOHK)

But more are at various stages of development, with the ADA fund likely to prove a timely launch. Hoskinson agrees with the sentiment, noting in a statement that the Cardano ecosystem will succeed if projects built on the blockchain thrive.

So we are pleased that the ADA Yield Fund is committing substantial financial resources to facilitate continued growth and market acceptance,” he added.

Cardano continues to see huge interest from institutional investors, with demand driving on-chain large transaction volumes even higher. Data shows that year-to-date, transactions involving $100k or more in ADA have spiked nearly 50x.

Demand has also seen the launch of ADA-backed exchange-traded products to cater to institutional investors. Just this week, WisdomTree launched a Cardano ETP for the European market.

The post Wave Financial unveils ADA Yield Fund to support Cardano’s DeFi ecosystem appeared first on Coin Journal.