Decentralized finance (Defi) apps may now benefit from a $90 million token fund developed by Aurora, a blockchain overlay atop the NEAR Protocol.
Proximity Labs, NEAR Protocol’s Defi arm and the fund were disclosed today. There were 25 million aurora tokens (approximately $90,000) donated from the Aurora Labs DAO treasury to Proximity Labs as startup money.
The tokens will be managed by Proximity and funding will be given to developers that want to create Defi-based Aurora apps. As a way to increase the general activity of the network, blockchain or cryptocurrency inventors deploy token-based funds like these.
After NEAR Protocol’s team obtained $350 million in a Tiger Global-led fundraising round a month ago, Aurora Labs has now received cash from the company. In other words, the Near ecosystem now has more money to spend on app development.
Although it is a member of the NEAR Protocol, Aurora is a stand-alone blockchain that works independently of it. In order to run Ethereum applications, they must be compatible with the Ethereum Virtual Machine (EVM).
Aurora Labs said it intended to attract more Ethereum developers to its EVM layer on Near with the introduction of its new development fund.
“Aurora DAO’s ambition to expand the Ethereum economy outside the Ethereum network continues. Aurora Labs’ creator, Dr Alex Shevchenko, stated, “I’m glad that Proximity Labs is accompanying us on this trip since this award represents the next significant step in the growth of the Aurora ecosystem.”
Aurora’s EVM compatibility has made it a significant network in the Near ecosystem. Aurigami, Bastion, Trisolaris, and other new Defi-centric applications are among the more than $800 million in total assets locked in the chain.
It has recently been attracting the best Ethereum-based projects. Recently, Curve Finance, a well-known Ethereum-based decentralised exchange, debuted its Defi product on Aurora’s marketplace.