Spartan Capital Invests An Undisclosed Sum To Support Pendle

Singapore-based VC firm Spartan Capital is known for supporting emerging businesses worldwide. In the last few years, this company has supported a large number of startups. Their expertise in multiple domains has enabled them to serve various companies in different industries. This time, they have picked an enterprise that has the potential to perform in the DeFi sector.

Spartan Extends Financial Support To Pendle

Pendle is a promising project of DeFi space that aims to bring stability to yield generation. Notably, Spartan supported this initiative right from its launch in 2021. Back then, it raised $3.5M from a few VC firms that included Spartan. As of now, the Singaporean VC firm hasn’t disclosed any information.

Here’s What Pendle Does

Pendle Finance is a decentralized platform that delivers financial services through tokenization. It lets the users sell their future yields in the form of tokens. As per its co-founder TN, the architecture supports the non-stop generation of yields. It enables the users to hedge, trade, and arbitrage their yields. The platform makes smart use of DeFi products in secondary markets and brings greater visibility.

Its team began the work in 2020 and worked on a distinct protocol. It offered an automated market maker (AMM) that segregated future yields from yield-bearing assets. The users can sell their yields and make profits instantly. Moreover, they can gain exposure to fluctuating yields by purchasing tokens.

What Makes This Investment Important?

The investors and users are considering it as a follow-on investment from Spartan. They did it through an over-the-counter (OTC) purchase. The VC firm announced it through a X (formerly Twitter) post which was quickly responded to by Pendle. Spartan emphasized recognizing the transformative potential of Pendle in on-chain yield trading.

It also mentioned that the DeFi project has emerged as a major protocol. According to DefilLama, Pendle’s total value locked (TVL) rose by more than 2000% from November 2022. Spartan showed confidence in its yielding projects, liquid staking derivatives, and real-world assets. It also believed that the solutions would bring more off-chain capital to the DeFi domain.

Kelvin Koh, the managing partner of Spartan Capital, also shared his views on the investment. He said that the confluence of real-world assets and liquid staking derivatives is opening new avenues for the DeFi industry.

Furthermore, their yield trading toolkit adds value to all the digital yield-bearing assets. All this means that Pendle will be a frontrunner in future DeFi advancements.

Optimism For the DeFi Industry

It should be noted this investment happened when the DeFi industry was facing some lows. The domain has not managed to reach the 2022 levels yet. On the contrary, it is down 279% from November 2021 when the industry witnessed all-time highs. Interestingly though, other markets are on a tear including Bitcoin. Reportedly, the original crypto gained 120% since the start of this year.

Despite the downtrend, the DeFi industry is seeing an influx of funding. Another VC firm Blockchain Capital announced an investment of a whopping $580 Million in DeFi-based gaming. So, it seems that the market has sufficient reasons to be hopeful.

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts round the clock, and is a strong advocate for women in STEM.