On Tuesday, Euler, a DeFi lending protocol, announced that it had managed to obtain fresh funding from some of the veterans in the crypto industry that would help it in diversifying its decentralized autonomous organization (DAO). The company managed to raise about $32 million in the funding round and Haun Ventures, the venture capital firm based in San Francisco led the round. It was established earlier this year by Kathryn Haun, the former general partner of Andreessen Horowitz. Moreover, Euler’s funding round also included venture arms of some of the other heavyweight names in the crypto industry.

These included crypto exchanges, such as FTX and Coinbase, along with venture capital firms like Uniswap Lab Ventures, Variant, Jane Street and Jump Crypto. Euler called the latest funding round as one meant for diversifying the treasury of its DAO. According to a spokesperson, the company, which has been around for 2 years now, has managed to reach a value of $375 million after the completion of this round. While the cryptocurrency market is in a slump and many believe that a crypto winter has begun, there is still a great deal of activity taking place in the decentralized finance (Defi) space.

According to the statistics, the total value that is locked in the different protocols in the Defi space had reached more than $105 billion. Euler was founded in 2020 and is a non-custodial lending protocol that boasts smart contracts, which are based on the Ethereum blockchain. If you check out Euler’s whitepaper, it explains that users are offered asset tiers based on risk for borrowing and lending most cryptocurrencies on the platform. According to Haun, they had found Euler’s approach to be unique in the world of decentralized finance (DeFi) when it comes to countering the risks of lending and borrowing crypto.

Haun further added that such innovative solutions are of the utmost importance because these protocols for lending and borrowing are a key part of the crypto space. The goal of the platform is to democratize the crypto assets that can be borrowed or lent. In this way, users can stay safe from the sudden changes in the price of the asset in question. Likewise, they don’t have to worry about any liquidations that may not be enough to repay the debt of the borrower. Euler disclosed that it has managed these risks by coming up with different categories for placing crypto assets.

It has an ‘isolation-tier’, a ‘collateral-tier’ and a ‘cross-tier’ and the purpose of these tiers is to help users in understanding the different risk profiles in order to know exactly what they are purchasing. Michael Bentley, the founder of Euler, said that they had developed their protocol to reduce the number of steps that have to be taken for listing crypto assets in the case of other protocols. In addition, they also wanted to mitigate the risk of lending and borrowing crypto assets. He said that they had conducted the funding round for ensuring good governance.