Cross-chain lending platform Synonym Finance raises $1.5 million in seed funding to address liquidity fragmentation.

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Cross-chain lending platform Synonym Finance has raised $1.5 million in an oversubscribed seed round led by Borderless Capital. The funding round drew support from prominent venture funds and angels, establishing Synonym Finance as a promising player in the evolving world of DeFi.

Synonym Finance has secured $1.5 million in an oversubscribed seed round led by Borderless Capital.

synonym finance, a cross-chain lending platform, made waves in the cryptocurrency and decentralized finance (DeFi) space today by announcing a successful oversubscribed seed round of funding, raising a total of $1.5 million. Borderless Capital, a renowned Web3-based investment manager focused on fostering dynamic blockchain ecosystems and cross-chain technologies, led the funding round.

The seed round garnered significant support from some of the biggest names in the venture capital and blockchain investment community, including: Robot Ventures, Big Brain Holdings, Berrys Ventures, AWVC, SerDAOAnd this also includes the contributions of angels. WRITE3, Jones DAO and Arbitrumespecially.

Synonym Finance stands out as a cross-chain lending platform built on the Wormhole xChain technology stack and Arbitrum. The main goal is to provide DeFi users with a robust money market featuring deep liquidity and cross-chain efficiency.

Bridging fragmented liquidity and cross-chain assets

In the rapidly evolving blockchain environment, various layer 1, roll-up, and sidechains have emerged, providing new opportunities for blockchain expansion. However, this diversification has led to fragmentation of on-chain liquidity, leading to inefficiencies. Additionally, as new chains are introduced, DeFi experts often seek to explore them, requiring asset connectivity. This process incurs high fees, slow transfer times, and the complexity of token wrapping and unwrapping.

0xbeachball, founder of Synonym Finance, expressed enthusiasm and gratitude for the significant support they have received, saying: Acquire users from both new and existing ecosystems. We are building Synonym to be a highly flexible cross-chain lending protocol that can provide liquidity and lend volume to new ecosystems.”

Synonym Finance’s cross-chain money market aims to solve the problems of fragmented liquidity and inefficient connectivity by allowing professionals to leverage the same liquidity across multiple chains. This is achieved by borrowing assets from one blockchain while simultaneously using collateral assets from another blockchain. Synonym leverages cutting-edge technologies, such as Circle’s CCTP, to provide users with a best-in-class financial markets experience.

Alpen Sheth, Partner at Borderless Capital, emphasized his excitement about Synonym Finance’s mission to provide secure cross-chain borrowing and lending while solving decentralized liquidity challenges.

“Synonym is increasing the overall maturity of DeFi for users, developers, and institutions across web3 and beyond, starting with a universal cross-chain money market,” he said.

Sam Kim, General Partner at Big Brain Holdings, expressed enthusiasm for Synonym Finance’s suite of products that leverage Wormhole and Solana’s emerging ecosystem, and how the team is committed to unlocking Ethereum capital and opening up Solana DeFi for Ethereum users. I believe it will help you.

Michael Tan, General Partner at Veris Ventures, praised Synonym for boldly tackling the complexities of cross-chain lending and recognized its potential to pioneer true cross-chain borrowing. He highlighted the important role synonyms can play in capital efficiency across existing and future blockchains.

Synonym Finance has demonstrated its commitment to security and risk management through audits by OtterSec and Runtime Verification, as well as a partnership with Gauntlet for quantitative modeling and real-time risk monitoring. In the long term, Synonym aims to become the best place for cross-chain lending and borrowing between major L2 rollups, app chains, and innovative L3s.

As the cryptocurrency and DeFi space continues to evolve rapidly, Synonym Finance’s successful seed round and innovative cross-chain lending solution positions the platform as a notable contender in the growing cross-chain ecosystem.

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