Binance Labs Invests up to $4.5 Million in Ambit Finance To Boost DeFi on BNB Chain
Binance Labs has made a strategic investment in Ambit Finance to accelerate the development of trustless DeFi within the BNB Chain ecosystem.
Ambit, representing a new breed of DeFi apps, will enhance the utility of BUSD and other assets across the BNB Chain ecosystem. The project is powered by an experienced team with a diverse background, which includes former Anchor Protocol leadership.
Ambit relies on the support of both old and new protocol communities, building its cutting-edge protocol with an emphasis on security and sustainability as well as incentivizing loyal community members.
Binance Labs, the venture capital arm and accelerator of Binance, has made a strategic investment to commit up to $4.5 million to Ambit Finance, a DApp using novel structured financial products to enhance the utility of BUSD and other select crypto assets.
The deal will also see Binance Labs and Ambit collaborate on launching future DeFi apps with a focus on innovation, security, and risk control, and partner with projects within the BNB Chain ecosystem and beyond.
Ambit will enable new use cases for BNB Chain users with the creation of a yield-bearing BUSD-based stablecoin designed to provide sustainable yield throughout all market conditions. The project’s multi-phased roadmap will also see it deliver a DeFi Superapp incorporating both existing DeFi functionalities like collateralized lending and innovative solutions for domains like under-collateralized margin lending and structured products for financial institutions. Ambit's North Star will strive to provide the most unified user experience in all of Web3 and become a hub of DeFi activity.
BUSD, issued by Paxos, is regulated by the New York State Department of Financial Services (NYDFS). In line with the regulatory requirements, BUSD offers a transparent product that verifies, protects, and ensures the reserves, efficiently maintaining the stablecoin’s US dollar peg. Paxos provides a monthly audited report of reserves in compliance with the most stringent reporting standards to ensure the security and safety of user assets.
Yi He, Co-Founder of Binance and Head of Binance Labs, commented: “Binance Labs is always into nurturing and making investments in promising DeFi projects. We believe that there are solutions and teams to build products that can contribute to building a trustless DeFi industry even in a turbulent market.”
Tyler Z., Investment Director at Binance, added: “We believe this strategic investment to be an opportunity to introduce an advanced lending protocol to the BNB Chain community. We hope that Ambit Finance can bring mass adoption of DeFi, and that users on BNB Chain will be able to enjoy multiple tailored approaches to advanced lending and risk control.”
Co-Founder and CEO of Ambit Finance, Sphere CM, commented: “The Ambit team has unprecedented experience in scaling mass-adoption protocols. The product will leverage lessons learned over the past year and make security and sustainability its governing principles. We will work closely with BNB Chain to make Ambit a cornerstone of the ecosystem’s on-chain strategy and, paired with Binance’s trusted brand and market strength, to make it a magnet for financial institutions entering the crypto space.”
This announcement is not directed at any investors or potential investors, and does not constitute an offer to sell — or a solicitation of an offer to buy — any securities, and may not be used or relied upon in evaluating the merits of any investment. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in this release are subject to change without notice. The contents in here should not be construed as or relied upon in any manner as investment, legal, tax, or other advice.
About Binance Labs
As the venture capital arm and accelerator of Binance, Binance Labs is on the continued lookout for the next big Web3 innovation. Since 2018, Binance Labs has invested in more than 200 projects from 25 countries. It has also incubated more than 50 projects that are native to Web3 through the Binance Labs Incubation Program, including Polygon, Perpetual Protocol, and Dune Analytics. As of August 2022, Binance Labs is the largest crypto VC in the industry, with Assets Under Management (AuM) of $7.5 billion and a Multiple on Invested Capital (MOIC) of 21.0x.
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About Ambit Finance
Leveraging the team’s experience in building Anchor into a $20B TVL protocol, Ambit Finance is a sustainable, comprehensive, and easy-to-use suite of fintech apps (“Superapp”) that will incorporate lending, borrowing, and yield optimization strategies to further the utility of BUSD and DApps in the broader BNB Chain ecosystem, and a launching pad for a “decentralized Binance” that will combine the useability of Binance.com with the latest innovations in DeFi.