DWF Labs, a prominent cryptocurrency market maker and Web3 investment firm, has announced the creation of a $75 million fund exclusively focused on Decentralized Finance (DeFi) infrastructure projects. This initiative aims to accelerate the development of the next generation of on-chain financial systems, recognizing the growing institutional demand driving DeFi towards a new phase of expansion.
The fund targets investment in projects that develop optimized yield, credit, and liquidity systems. Specifically, DWF Labs seeks to support blockchain projects building dark pool perpetual DEXs, decentralized money markets, and fixed-income or yield-bearing asset products. The firm has indicated that this investment will encompass key blockchain ecosystems, including Ethereum, BNB Chain, Solana, and Base.
DWF Labs' objective with this initiative is to attract founders who can address fundamental structural problems in on-chain liquidity, settlement, lending, and risk management, rather than those offering only minor protocol adjustments. The firm's mission is to identify and back high-conviction teams that possess a functional Minimum Viable Product (MVP) and a distinctive value proposition, enabling them to achieve rapid technological and commercial maturity.
Capital Strategy and Support for Institutional Adoption
Andrei Grachev, Managing Partner at DWF Labs, highlighted the critical importance of developing DeFi infrastructure with "real utility" that can cater to the demands of institutional investors. Grachev stated, "DeFi is entering its institutional phase. We’re seeing real demand for infrastructure that can handle size, protect order flow, and generate sustainable yield. The new fund is designed to support founders who are building the systems that will define the next decade of open financial markets."
In addition to capital, the DWF Labs fund will provide tangible ecosystem support to its portfolio teams. This support includes access to active liquidity provisioning and Total Value Locked (TVL) services, assistance with go-to-market strategies, and connections with market makers, infrastructure providers, and institutional partners.
Furthermore, the investment firm plans to utilize its extensive global communication and marketing capabilities to accelerate user acquisition for its portfolio projects. This strategic support aims to offer entrepreneurs an "unfair advantage," where distribution and liquidity are considered as vital as the product itself.
This announcement arrives amidst a positive market momentum for DeFi. The current Total Value Locked (TVL) across all DeFi protocols exceeds $121 billion. Experts, such as Sergey Nazarov, co-founder of Chainlink, estimate that DeFi is currently 30% of the way towards achieving mass adoption.
Fund Investment Focus Areas
- •The fund is valued at $75 million and is exclusively focused on Decentralized Finance projects.
- •Investment targets include perpetual DEXs, decentralized money markets, and yield-bearing asset products across multiple chains.
- •DWF Labs seeks projects with a functional MVP that solve structural problems of on-chain liquidity and risk.