Compound and Gauntlet founders raise $ 4 million for a new Scout DeFi fund

Compound and Gauntlet Founders Raise $ 4 Million for New Scout DeFi Fund - Compound GauntletLeshner, the founder of the Ethereum Compound Labs-based money market, and Tarun Chitra, of the cryptocurrency modeling network Gauntlet Network, are jointly managing a new fund.

It is the second fund created by Leshner's firm, Robot Ventures, and has secured a $ 4 million loan, led by Galaxy Digital with the additional participation of Coinbase cofounder Fred Ehrsam of Paradigm.

A new way to help large companies move towards the future

Scout funds act as seed investors but with ties to institutional funds, helping larger companies get a first glimpse of opportunities for subsequent rounds. Robot Ventures was first announced in April 2019.

“It's hard enough to figure out which ones make sense and which ones don't,” Chitra said, because it can be difficult for those who aren't in the trenches to assess the quality of a project's relevance. "We can serve as a bridge." Chitra and Leshner bring complementary skill sets into space.

Leshner is the one who created a DeFi company and brought it to a market leading position. Tarun, as Leshner said, "is probably the leading number within DeFi and has done much of the structuring of token distributions and economic analysis for probably any project you've heard of." "He is the brain, I am the muscle," Leshner joked.

"This is the era of speed of light for DeFi"

Chitra said that DeFi today has a clear advantage over traditional high-end trading desks that won't even consider creating a derivative for less than a few million dollars. DeFi launches new derivatives every day, completely overturning the model.

This is where the greats come Investors they want to get some kind of exposure. "I think it's a bit like when traditional markets went electronic in the 90s, when people were able to start their own backyard exchange and over time they evolved into today's modern trading ecosystem. ”Chitra said.

"I think DeFi will converge into a happy medium that replaces many of the traditional investment banking functions." New large projects and operations may soon arise, or perhaps some existing ones may lag behind.

“When I started Compound there were three things that in the future would be called DeFi projects,” said Leshner. “This is DeFi's speed-of-light era, where a week feels like a year. The rate at which people try new things is the highest that has ever existed. "