API3, a prominent provider of decentralized API services for blockchain networks, has recently concluded a significant treasury diversification round, securing a successful $4 million in USDC. The round was led by DWF Labs and included the participation of key venture capital players such as Spartan Group, Laser Digital (a division of Nomura), and Caladan (formerly AlphaLab).
This strategic financial move aims to strengthen API3’s market presence and enhance its operational capabilities, ensuring the project’s ability to innovate and expand within the decentralized finance (DeFi) ecosystem. The funding round not only injects substantial capital into API3 but also aligns it with partners who offer strategic advantages. These partnerships are expected to drive further development and integration of API3’s technology across various platforms and applications, with a focus on expanding and improving decentralized applications (dApps) and blockchain networks.
The influx of funds will specifically support important initiatives like the mainnet launch of the OEV Network, showcasing API3’s dedication to increasing the accessibility and functionality of decentralized oracles.
DWF Labs tweeted, “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 revolutionize the oracle landscape and advance the global on-chain financial system.”
In the funding round, 1,423,500 API3 tokens were allocated at a price of $2.81 each, representing a 20% discount on the 7-day TWAP of $3.51 per API3 token. DWF Labs received 711,744 API3 tokens for their $2 million contribution, Spartan Group was allocated 355,872 API3 tokens for $1 million, and both Laser Digital and Caladan received 177,936 API3 tokens for their contributions of $500,000 each. This structured allocation reflects the confidence and commitment of these leading firms in API3’s vision and their role in advancing the project.
To ensure a strong and lasting partnership, the tokens distributed in this round are subject to a 12-month linear unlock schedule after a 6-month cliff. This means that half of the tokens will become available six months after funding, with the rest gradually released over the following 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 will enable API3 to further its mission of reshaping the oracle landscape by developing a fully integrated oracle stack, expanding its services, such as 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 ongoing innovation in the rapidly evolving blockchain and DeFi sectors.
With the successful completion of this funding round, API3 is better positioned to pursue its development goals and expand its technological offerings, solidifying its position as a key player in the blockchain infrastructure space. The partnership with prominent entities like DWF Labs, Spartan Group, Laser Digital, and Caladan underscores the project’s potential and strategic direction, paving the way for its next phase of growth and its contribution to the broader blockchain ecosystem.