ETHA Lend, the chain agnostic yield optimizer powered by Polkadot and Ethereum, raised $1.6 million during their first funding rounds to accelerate yield optimization in DeFi. The investment round was led by AU21 Capital, DFG Group and Privcode Capital, followed shortly by eminent investors including Vector Capital, Chain Capital, PNYX Ventures, Lancer Capital, Oasis Capital, TRG Capital, Candaq, Dealean Capital, Inclusion Capital, Origin Capital, ZB Capital, YBB Foundation, AC Capital and Hotbit.
The blockchain startup aim is to solve the inherent complexities in the current DeFi lending market. Essentially, as a yield optimizer the protocol uses different data points and optimization techniques to attain the optimum value and return on investments. A key feature of the yield optimizer is that it understands the precise circumstances of a liquidity provider’s supply event. The discovery algorithm takes in the latest gas costs, asset volatility, the past and present yield, and budget of the asset supplied, to optimize the asset allocation.
Danny Boahen, the Co-Founder of ETHA Lend protocol, says, “We are excited to have some of the most reputable names in the Crypto investment and DeFi funding market on board. Our protocol hosts unique integrations of the DeFi space that shall let users dabble with yield optimizations with unseen simplicity, cross-chain independence, and progressive yield optimizationf opportunities. You can look forward to a time when the sector shall be free of the haunting tribalism and intimidation both for new and expert users.”
Who’s behind ETHA Lend?
ETHA Lend was co-founded by Chester Bella and Danny Boahen, both of whom have ventured in the blockchain domain for long. During their explorations of the broader DeFi space, ETHA Lend Co-founders quickly realized that identifying the most optimal yields becomes intimidating for the average user, in two domains – It is hard to understand and hard to execute. The protocol leverages innovative tools including an intelligent discovery algorithm to make the yield optimization simple and elegant for the average user, irrespective of their history and experiences with the DeFi space.
Supporting this vision is Felipe Gomez (CTO of ETHA Lend), who leads ETHA Lend through a seamless technological architecture and elegant infrastructure for the platform and its community.
In the words of the ETHA Lend team, “if yield is the most potential-rich segment of DeFi, then ETHA Lend shall be the only tool users will need to excavate the bounties of the pasture.”
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Partnership with Chainlink
In January 2021, ETHA Lend reached a huge milestone by partnering with Chainlink, the No.1 DeFi oracle provider.
“Using Chainlink for Fast Gas prices on-chain enables ETHA strategies to plan for and automate the switching costs across DeFi protocols in a decentralized manner. Optimizing yield is not only about finding the best rates, but bringing secure network performance indicators into the protocol as part of the strategies. Chainlink’s secure framework for fetching gas prices enable us to stay decentralized and secure while getting the gas data we need.” — ETHA Lend Co-Founder Chester Bella.
The Chainlink-powered decentralized gas price oracle ensures that the yield optimizer discovery algorithm fetches current gas prices when calculating the best way to route and split LP-supplied assets across DeFi protocols (AAVE, dYdX, and Compound). In the current iteration, the yield optimizer calculation factors in the latest gas cost (fetched from Chainlink oracle), the volatility of the asset’s current and past yield (currently up to 30 days), and the amount of assets supplied to determine the optimal asset allocation. The volatility timeframe is configurable but will use the most recent data by default at launch.
ETHA Lend’s yield optimizer aims to find the best weighting to maximize earnings by factoring in gas prices and projected yield returns from Aave, DyDx, and Compound.
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