Hong Kong-based venture capital firm Chiron Partners has launched a new Terra Ecosystem Fund (LUNA) that opens the door to new innovations in first-team decentralized finance, or the DeFi protocol.
Chiron Terra Fund I, also known as CTI, will spend $50 million to support innovative projects built on the Terra ecosystem. The company announced Wednesday that projects located at the intersection of decentralized finance and non-fungible token platforms are eligible for support.
Terra, built using Cosmos SDK and Tendermint, is a DeFi protocol that uses connected stacked digital currencies to power global payment systems. The original LUNA token was designed to absorb the short-term fluctuations of the Terra coins. It is reported that after the October Columbus-5 upgrade, more than 160 new projects will be deployed on Terra in early 2022.
“CTI fills an important gap in digital assets. We truly believe that all major projects require a well-thought-out protocol to thrive, and CTI will make that possible. We are pleased to advance our objective approach and identify promising investments,” said Shawn Hong, founder and CEO of Chiron Partners.
Terraform Labs, the South Korean developer behind the Terra blockchain, raised $150 million in funding earlier this year. Major crypto funds contributed to the growth, including Pantera Capital, Galaxy Digital and BlockTower Capital.
“We are delighted that Chiron’s partners in the rapidly evolving Terra ecosystem are a valuable resource to help provide ecosystem projects and builders with capital, strategic expertise, and other guidance,” said Du Kwon, co-founder and CEO of Terraform Labs.
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According to industry data, Terra has become one of the largest in the DeFi-focused blockchain market, with a total value of over $13 billion. Only Ethereum has a higher TVL.
When it comes to TVL, Terra sits side by side with Ethereum and is ahead of Solana, Avalanche, Tron and Polychain. Source: DeFi Llama
In terms of price/quality ratio, LUNA has surpassed 9000% this year. Crypto crossed $77 in the last month. The total market capitalization of the cryptocurrency is $24.2 billion, which puts it in the 10th place among active projects.